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How Google is Increasing Click-Through Rates of Ads-DAC Group Comments


February 8, 2011 - TORONTO, ONTARIO

Will an increase in click-through rates for ads at the top of Google's search page come at the expense of organic results or at the expense of ads placed elsewhere on the page?

According to a change announced on February 3(i) and rolling out in the coming days, Google users and marketers who place ads with the site will notice a visible change in the way that paid search results are presented.

Google is changing the location of the first description line for certain ads that appear above the search results. This line will now be moved to the top line, creating longer headlines, as they will include text previously found in the description area.

Additionally, Google announced on January 10(ii), domain URLs in ads will now appear in lowercase. Previously, advertisers had the option to incorporate capital letters where they felt appropriate. The domain portion of the display URL will now always be shown in lowercase letters. Meanwhile, URLs in the organic search results have always appeared in lower case.

As a result of these changes, ads that appear as search results now more directly resemble the organic search results.

Leading SEO/SEM agency, DAC Group questions how these changes will impact the influence of paid results. DAC Group SEM Specialist, Ian Spencer comments, "With this new format, Google could be seen to be blurring the lines between organic and paid results. If more searchers are clicking on these ads in favor of organic results then this could be a very profitable move for Google." Spencer noticed the change as DAC Group consistently monitors Google's testing in order to further optimize the efficiency of results for its own clients.

He continued, "Even if more people click on these ads in favor of the traditional ads, which will continue to appear in the right hand column, then this could also be particularly advantageous for Google as the ads that appear above the search results are generally more expensive." Google continually performs tests on searches and corresponding results. While such changes often offer improvements for search users, Google is now also changing the face of paid search results. Google noted that click-through rates improved in paid searches when these changes were present.

Ken Dobell, DAC Group President of Digital, stated, "As an integrated search agency we cover all bases in the ever-changing world of search." Continues Dobell, "As Google evolves so too do the practices of marketers and searchers, which means that we need to constantly adapt."

Sources:

(i)http://adwords.blogspot.com/2011/02/longer-headlines-for-select-ads-on.html

(ii)http://adwords.blogspot.com/2011/01/change-to-appearance-of-search-ad.html

About DAC

Founded in 1972, DAC Group (http://www.dacgroup.com/) is Canada's largest, and one of North America's leading, digital and directory agencies with offices in Toronto, Montreal, Calgary, Vancouver, Rochester, Louisville, New York and Cleveland. DAC Group combines consumer insight, proprietary technology and media expertise to create innovative marketing and lead generation solutions. A leader in developing ROI based strategies, DAC Group drives business and revenue via local, regional and national programs integrating a broad range of online and offline channels including search engines (SEM/SEO), directories, social and mobile media. The agency is owned by its management.

Contacts:
DAC Group
Sarah Soteroff
PR & Communications Manager
416.492.3214 ext. 6317
ssoteroff@dacgroup.com

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