Google’s Made Some Big AdWords Changes – How Should Startups React?

Google’s 2016 Performance Summit centered around one word: mobile.

The search giant announced a number of changes to their service offerings, including AdWords, Analytics and Maps. If you haven’t read any of the great roundups of the Summit, take a moment to do so (we recommend Search Engine Land and WordStream).

But if you’re wondering how all of this change impacts your real-world digital marketing efforts, we’re here to help.

Localized Ads, Promotions, Tracking

If you’re an e-commerce company, Software-as-a-Service offering, don’t have physical locations or services areas, or operate with a large geographic footprint (think national or international), feel free to skip this section.

But if you operate within a certain service area, have brick-and-mortar stores or need to be found when people search “[your product] near me,” the focus on local products should make your ears perk up.

Photo Credit: Google
Photo Credit: Google

In short, users of Google Maps will now see sponsored listings and promotions. This is a big, big deal for businesses, because nearly 1/3 of mobile searches are for local needs. For B2B and B2C alike, this will be a great chance to experiment driving users to call, click and visit your store.

Think of this as a competitor to local media spend. Instead of buying a billboard or a radio ad in your target city, try spending that same dollar amount on local search. Not only will you reach an audience that is highly qualified based on search criteria, but you have the ability to drive the same types of responses – phone calls and in-store visits.

Photo Credit: Google
Photo Credit: Google

The best part? Google’s ramping up availability of in-store conversion tracking, based on phone location history. In other words, you can see how many of the people who clicked your local search ad actually came to your coffee shop, gym, flooring store! That’s a serious step towards correlating online ads with offline conversion data.

Recommendation: For local businesses, allocate a portion of local media spend to test local search ads once they launch. Then, compare ROI based on spend, CPA, and CPM with other local media options.

Responsive Display Ads

Alright, all you Big Data companies, you can start paying attention again, because this one’s for everyone.

Display Advertising is typically much cheaper than Paid Search, can reach a huge audience for very attractive CPMs, and offers a variety of targeting options. So why don’t more businesses use it? In a word: cost. Producing ad variations in what feels like 1,000 different sizes (leaderboard, small rectangle, large square, skyscraper, etc.) for both mobile and desktop can be cost prohibitive.

Not anymore.

Photo Credit: Google
Photo Credit: Google

With the new Responsive Display Ads on the AdWords platform, you provide Google with the landing page and the text overlay data, and the system builds the ads for you. These ads will adapt to mobile, tablet, desktop, all in various needed sizes on the Google Display Network and in apps, even native ads.

So if cost has been holding you back from doing more Display Advertising, prepare to dive in.

Recommendation: Test of out the new responsive display ads to reach audiences that are difficult to target with Paid Search, such as by criteria like age, gender, interest, website topic, website keyword.

More Granular Device Bidding

A longtime cry from the SEM community has been for Google to allow separate bid modification and management for mobile, tablet and desktop (reminder: currently, desktop and tablet are bundled). Google has heard the tortured screams of performance marketers, and will be unbundling those devices later this year.

Photo Credit:
Photo Credit:

If you already have campaigns up and running, it’s time to go examine device performance. It’s not uncommon to see big differences between tablet and desktop conversion rates and CTRs, and once those two devices are no longer tied together, it may be worth pausing or reducing bids for one or the other, depending on your data.

Additionally, it is now going to be possible to segment out device-specific campaigns. Want to advertise desktop software? Don’t run ads on mobile or tablet. Want someone to download your app? Skip the desktop ads. Want to use specific copy for mobile users and know that nobody else will see it? You get the idea.

Recommendation: Segment campaigns by device based on goals, and/or make bid adjustments based on conversion performance on different devices.

But Wait…

There are some other details from the Performance Summit as well:

  • More Google Display Network placements
  • Expanded text ad headlines and descriptions
  • A new AdWords interface
  • Demographic targeting for Paid Search
  • Local inventory search within Maps

Ultimately, the one piece that was missing amongst all of this information is launch dates. We know the new interface is expected in 2017, and the rest of the changes should roll out soon. Until we hear further from Google, we will need to prepare our strategies…and wait.


Would you like a professional review of your paid search, display or paid social advertising efforts? Our comprehensive PPC Audit offers just that. Let’s schedule a time to chat.