The Digital Lookout

Google has today announced plans for further changes to be made to their quality score algorithm following the changes to the Google scoring system which took place in September.

The latest announcements as announced on the inside Adwords blog are not yet in place but are likely to be in the next week so it is considering how they may affect your Adwords campaigns.  The changes come in two forms:

Position Normalisation on CTR Influence

Reading between the lines on the release (it isn’t Google’s clearest ever announcement!) Google are going to be accounting for the position of an ad when deciding how significantly CTR should apply to the quality score.  Traditionally CTR has played a huge part in the quality score algorithm and I have no doubts it will continue to do so, but the problem with it has always been, it can be bought.  The big spenders, with the deep pockets, can afford to bid to position 1 and buy a good CTR in a short space of time.  Through this latest change Google are aiming (at least I hope) to reduce the ability to do this by accounting for position when judging what constitutes a “good” click through rate.  So for example a CTR of 3% in position 5, would be determined a better judge of quality than 5% in position 1 where the ad is the first thing is searcher sees.  This should allow for a much more level playing field for the lower spending advertisers and negate, to a certain degree, the spending power of the big players.

Changes in Position 1,2 and 3

Traditionally the top 3 positions which appear above the natural search results are determined by whether the top 3 advertisers in the max CPC x QS model had a sufficient quality score to merit inclusion in the top bar (what quantifies sufficient is unknown).  These three positions are highly valuable and get high CTR due to their prominence on the page.  What the latest changes are going to do, in essence, is to place more emphasis on ad quality and QS in this equation and less on max CPC (see a trend here?).  So that if an ad in position 1 doesnt have the necessary CTR and ad quality to appear in position one, but wins the general auction, it wont stop the ads in position 2 and 3 from leap-frogging into these prominent positions.

My general feeling is that these changes will normalise the market for the benefit of the small business PPC marketer.  Obviously Google will still make their money as a lot of clicks at a medium CPC is better than a couple of clicks at a high one.  it could also prompt the big PPC spenders spend even more as they try to achieve the positions they previously hold, win win for Google!

I expect a pretty turbulent PPC landscape over the next week so Ill be keeping a close eye on things, I advise you to do the same!

A new feature appears to have been released by Google recently (I only noticed today but it may have been around for longer) which brings up a post code selection box on some generic, product/service based keywords, which could be deemed location specific.

On a search for doors a postcode input box appears beneath the top 3 paid search listings, and above the natural search results.  On input of your postcode maps listings are brought up around the specified location.

This is a nice little tool from Google and will certainly bring a lot more traffic for their maps listings.  In the past they have only been able to display maps listings when it was clearly identified through the search phrase what area the person was looking in (i.e. hotel Manchester) but with this new tool they have the potential to get traffic from any generic keyword which could be location specific.

The tool also gives you the option to save your location which also means that once this is done, Google will serve maps listings for your location on a lot more search phrases as it knows exactly where you are.  it could potentially also be used for location targeting PPC ads.  The only problem with this is if your are searching for a service you don’t want in your locality, e.g. a hotel somewhere you are visiting, you aren’t going to get the most useful results.

Google Post Code in Search Results

I was alerted to a great resource today for examples of social media done well.  If you are anything like me you have spent a lot of time speaking to clients about how they can utilise social media, sometimes coming up with gems, and sometimes hitting a blank.  I have long held the opinion that social media isn’t for everyone but Peter Kim has come up with a great list for companies who have used it, and used it well.

This is a great resource for coming up with ideas for how social media and social networking can be used in different markets.  An once you get past all the Facebook pages and groups there are actually some good ideas in here as well!

Interestingly the YouTube wii fit video “Why every guy should buy their girlfriend Wii Fit” is on the list under Nintendo suggesting that maybe it was viral which was produced by the gaming giant and not as innocent as they claimed.

List of Social Marketing Examples

In an attempt to combat the impending slump in gambling revenues following Google’s change in gambling policy Yahoo! has taken the unusual step of REMOVING some of its advertising listings from key sports keywords.  A search for football betting on Yahoo! UK will now return just 4 paid search listings at the top of the SERP and 2 at the bottom with the right hand inventory devoid of PPC ads, replaced only by universal searchelements such as image search results and Eurosport news results. This seems a rather strange attempt to reverse a decline in revenues by removing the elements that generate the revenue in the first place! The explanation given by Yahoo! is that this is a beta trial to determine whether the streamlined user experience out-ways the loss in revenue.  And the impression is their appearance will be done at a keyword level determined by whether the revenue out-ways the experience for that particular keyword. Ill be honest, I don’t think this is going to get out of beta testing.  Gambling has been one of Yahoo!’s key sectors and with the Google changes likely to see advertisers diverting their PPC funds away from Yahoo! naturally anyway.  The effective removal of available positions on page 1 will make pay per click marketers consider whether it is worth bothering with Yahoo! at all if they cant afford to be in the top 4 slots. Well done Yahoo! kick yourself while you are down!

Yahoo Removes PPC Listings for Gambling Keywords

Microsoft have conducted a piece of research which goes further towards showing the need for an integrated approach to digital marketing where display advertising and search engine marketing are concerned.  Off the back of the overused Atlas example which suggested a 22% uplift in conversion could be produced from a combination of search and display, and Yahoo’s piece which suggest similar impact, Microsoft have launched their own research which backs up the previous reports.

The figures which have come out of the Microsoft report show a 2x improvement in website visits through a combined approach along with a 54% increase in likelihood of a user conducting a brand search if they had been exposed to a display advert.

You have to take into consideration the producers of these pieces when reviewing the results they show you.  Atlas earn their money based on the amount of activity you are undertaking so have a vested interest in increasing it (plus they earn off both impressions and clicks with display).  Yahoo have seen a downturn in the last quarter in the premium CPM display advertising and so it is in their interest to get you buying more.  And similarly Microsoft need something to prop up their lack of progress in paid search.

So you have to take what they say with a pinch of salt, but that’s not to say there is nothing at all in it.  i do believe an effective online plan involves a balance of all elements.  Search as the flexible, movable return based feast, affiliate marketing as the finite guaranteed return and display advertising to boost the brand and increase awareness.  That said I am an advocate of flexible solutions for display advertising and don’t think that any placement is worth more than £10 CPM, there isn’t enough branding to warrant anymore than this amount.

So whilst I would view the actual stats displayed with an air of scepticism, the general principal is sound in my opinion.  A balanced approach with a blend of channels means you get the best of each without placing all your eggs in one basket.

View Microsofts findings here