When homebuyers bemoan the high prices commanded by desirable locations, real estate agents often reply, “location, location, location!” With Google’s recent confirmation that they’ll be serving fewer ads per desktop search result, we expect search marketers to become more acutely aware of "location, location, location."
Less inventory and constant demand could create an uptick in average CPCs for high demand queries (if you’re curious about locking in top ad spots, check out PositionLock).
While this update (and our prediction) may be distressing for some advertisers, we anticipate this change will be net-positive for the industry.
From a user perspective, “less is more.” As we’ve observed with Google mobile ads, which this update emulates, a clean user experience free of distraction creates high click-through rates for top position ads.
Furthermore, if higher CPCs do come to pass, it could stomp out competitors bidding in auctions where they’ve historically had weak product-market fit. With fewer distractions, we expect advertisers will have an easier time connecting with current and future customers. We’ll be keeping a watchful eye on the performance and user experience.
We anticipate this update to be the most meaningful for ecommerce advertisers. Since Product Listing Ads (PLAs) are exempt from the right-rail exclusion, retail advertisers will be the only tenants on this coveted real estate which moves PLAs into Park Place territory.
If you’re an ecommerce advertiser, it’s paramount that your feed be optimized and that your bids are on target (if you need help, check out Marin Shopping). As both users and marketers on Google, we’re excited for this change - we’re happy to speak with any marketers seeking bidding, PLA, or general best practice advice.