You may not have noticed, but just last week Google rolled out a new AdWords algorithm. Google announced that the update will ‘improve’ AdWords including some of the new features they have already rolled out primarily their new ad extensions.
Ad extensions and formats will now affect the position of ads on the Google search results page. Google uses the example:
If two otherwise identical ads were to appear with the same bid and quality score, the ad with the ad extensions most likely to perform would appear in the higher ad position.
Ad Rank will also factor in whether extensions appear for ads; Google notes that a higher Quality Score or bid (or a combination of the two) increases the likelihood of extensions appearing.
According to Google’s announcement, ads with extensions are expected to perform well and may see a lower cost per click and higher click-through rate, while those ads without the benefit of their favourable projections could see their CPCs go up.
“You may see lower or higher average CPCs in your account. You may see lower CPCs if your extensions and formats are highly relevant,
and we expect a large positive performance impact relative to other competitors in the auction. In other cases, you may see higher CPCs
because of an improvement in ad position or increased competition from other ads with a high expected impact from formats.”
Google is pushing advertisers to use extensions in their ads, and now that they impact Ad Rank, advertisers who haven’t already added extensions will need to look at incorporating them in their campaigns.
Google also reminds advertisers the ad platform will automatically choose which extensions should be used, based on best click through rate performance. Ad Rank currently only affects advertisements placed on the Google search results page.
If you haven’t ventured into ad extensions just yet, Google has added some pages to assist and help advertisers learn about the different Ad Extensions.
AdWords is a great way to build your business profile, However it is important to invest in proper Search Engine Optimisation, for Organic Results.