- Posted by Mathew Nelson
- On April 22, 2016
Google has just announced several improvements in the manner in which the company accounts for the impact of ad formats and notes that some ad formats can improve click-through rates (CTR) from 10 to 20 percent.
As part of the improvements, costs for incremental clicks from ad formats will change dynamically, based upon the prominence of your ad. Google will now no longer allow lower-positioned ads to receive increased prominence from ad formats compared to the prominence of higher-positioned ads. In previous instances, there had been first ads displayed with no formats, but subsequent ads displaying with many formats.
Lower-positioned ads will now be limited in their number of extensions and will never display more extensions than a higher-placed ad. This will prevent the lower-positioned advertiser from having more prominence than ads positioned above it.
Search Ad Formats
Google will now show an increased number of ad formats on ads which are about the search results and benefits will be improved for those advertisers in the highest ad position.
As before, Google’s system will show your company’s best-performing and most-relevant combination of eligible ad formats.
Google defines prominence as “an estimation of your ad’s visibility” on Google’s search results page. Google measures prominence mainly by noting the average change in CTR gained by the addition of ad formats or shifting up to a higher ad position. Google also takes into account the value of other ad interactions when measuring prominence, such as receiving a call from a click-to-call ad.
Other factors can affect your ad’s prominence in Google’s estimation, including:
- Position: Higher-placed ads possess more prominence as users are more likely to view the ad. Overall, ads generate more clicks as they move into higher ad positions.
- Ad Formats: Those ads displaying ad formats possess more prominence than those ads which do not display ad formats. This is because, in general, ad formats increase user attention and, thus, generate more clicks for those ads which have them.
As is their custom, Google has provided useful links for businesses to better understand, use and troubleshoot their ad extensions. Here are a few that we, at V Digital Services, have found especially helpful to share with our clients:
- Best Practices Guide for Ad Extensions
- How Ad Extensions Can Enhance Your Ad
- Understanding Why ad Extensions Are Not Displaying
V Digital Services
As a trusted Google Partner, V Digital Services can help your business successfully navigate the ever-changing algorithms of the world’s largest search engine. If you have any questions about these changes to Google’s accounting process for the impact of ad formats, please contact us today.