You may (or may not) have noticed Google’s new update to desktop search results. When searching on Google recently – since February 19th to be exact – the Google ads on the right side have disappeared from desktop view.
Instead of three ads being shown at the top of the Google search with a few on the right side as well, there are now four ads being displayed at the top. Three more text ads will also show at the bottom of the search results pages (SERPs), removing about 30% of previously available ad space.
So, does these mean that CPCs will be increasing dramatically? Maybe, but we’ll need more time to evaluate. Of course, the top four ads will sell for a lot more than the bottom three, but that is to be expected. With less real estate available, demand will likely increase while supply has decreased, leading to an increase in selling/bidding price. However, one could also argue the fact that there are more “top” spots now than there were before, which could potentially lower the cost per clicks.
As a search marketing provider, we will continue to monitor this change’s effect on the CPC and average position of our clients’ ads, but as of now, little impact has been shown – although it’s early.
There is also another factor to consider: Organic traffic. Since there are now four top ads instead of three, the top organic search result will be pushed lower down the page (if there are four or more companies bidding on ads for that term).
What does this mean for you? Well, say you are winning a popular search term organically but not with paid (PPC) for your website. There are now four paid spots that may grab someone’s attention before they can even make it down the page to your organic listing.
Therefore, in a highly competitive market like auto sales, it may be time to consider purchasing your name if you are not already winning it, or to adjust your campaign structure to be a little more aggressive where needed. Organic rankings may become less important as time goes on, so we’ll have to keep an eye out!
For more information on pay per click search marketing and how it works, give AIM a call today!