PPC news - November 2024

Concerns over Google’s “Request competitive quotes” feature

The introduction of a new “Request competitive quotes” button in Google Local Services Ads has sparked concerns among advertisers regarding potential hidden costs and transparency challenges.

How it works:

• Selection: Users click the “Request competitive quotes” button, enabling them to select multiple businesses to solicit quotes.
• Quote request process: After submitting a message and their email address, Google sends the quote request to all chosen businesses simultaneously.

This feature could influence advertisers’ cost per lead, potentially leading to inflated expenses without clear communication. The opacity surrounding possible charges could distort performance metrics, making it challenging for advertisers to accurately assess ROI.

The unknowns:

• Are businesses charged for each quote request, or only when users engage?
• How does this feature impact overall cost per lead calculations?

This critical information is not included in Google’s public documentation, leaving advertisers uncertain. As of now, Google has not provided any comments.

For those utilising Google Local Services Ads, it’s vital to understand the cost implications associated with the “Request competitive quotes” feature. If this tool results in higher, unexpected lead costs, it may adversely affect ROI and advertising budgets.

Google launches video ad experiment tool to simplify A/B testing

Google’s new Video Ad Experiment tool simplifies the process for advertisers to conduct A/B tests on video ad creatives and rapidly gather actionable insights.

The experiments can be set up in just a few clicks, due to Google’s quick duplication of the campaign. Advertisers receive early, directional results within days. Assets can be added and removed to identify strongest performing elements.

This tool streamlines the often-complex A/B testing process for video ads, allowing for quicker optimisations and improving video campaign performance and ROI. Google reports that confidence intervals can achieve up to 95% statistical significance.

The tool supports Video Reach and Video View campaigns, enabling advertisers to optimise video creatives effectively, ultimately improving campaign outcomes and ROI.

Google rolls out AI Overview Ads on mobile

Google’s AI Overview Ads are now live for mobile users in the U.S., appearing beneath AI-generated answers in search results. This new ad format was initially announced in May during Google Marketing Live 2024, designed to deliver relevant ads directly in response to commercially intent queries.

Ad placement: AI Overview Ads appear below the AI-generated answer, marked with a "Sponsored" label, resembling typical Shopping ads.

Triggering queries: These ads display for commercial queries, such as product searches, where both the ad and the AI answer are relevant to the user’s question (e.g., “how to remove grass stains from jeans”).

Campaign integration: No new setup is required; existing Search, Shopping, and Performance Max campaigns can appear in this format if they win the auction.

No opt-out or new reporting: Advertisers cannot opt out of AI Overview Ads, and there’s no specific reporting available to monitor their performance in these placements. Standard search terms reports will remain the primary performance metric.

With AI Overview Ads occupying prime Google real estate, these placements could drive high engagement and conversions. However, their lower placement beneath the AI answer raises concerns about ROI, as the effectiveness of ads in this location remains unclear. Google maintains that this placement aligns with user intent, though transparency around performance remains limited.

While Google’s AI Overview Ads aim to provide seamless solutions for commercial queries, advertisers are left seeking more data to evaluate the value of this ad placement.

Google tests AI-driven “search bidding exploration” tool for high-budget campaigns

Google is piloting a new AI-powered feature called search bidding exploration, designed to identify valuable low-traffic queries in search campaigns. Targeted at large advertisers, this tool is part of Google’s Smart Bidding suite and provides new ways to boost reach by refining tROAS bidding on broad match keywords within high-budget, unlimited-spend campaigns.

AI-driven query discovery: Identifies converting, low-traffic search queries that are frequently overlooked.

Dynamic tROAS adjustment: Lowers tROAS targets by up to 10%, enabling bids to adjust to capture new traffic opportunities.

Broader keyword match expansion: Expands exposure by broadening keyword matches beyond high-performing historical terms.

Limitations:

• Restricted to unlimited budgets: The tool is currently available only to advertisers without budget constraints, limiting access to larger brands and high-spending campaigns.
• Unclear reporting transparency: Google has not confirmed whether detailed reporting on these new traffic sources will be provided, potentially restricting insight into additional spending.

This tool aims to transcend typical AI-driven campaign optimisations, addressing criticisms that products like Performance Max and Meta’s Advantage+ primarily reach “low-hanging fruit” audiences likely to convert regardless.

While this AI tool may present untapped growth opportunities for large advertisers willing to expand budgets, it could also encounter natural conversion ceilings. Smaller advertisers should monitor whether Google plans to develop a budget-friendly alternative in the future.

Google’s Call Ads upgrade to Responsive Search Ads

Key Changes:

• Landing pages requirement: All Call Ads must now include a final URL, ensuring users land on a relevant page after clicking the ad.
• Business name requirement: Advertisers are required to include a business name, either at the campaign or account level, for all Call Ads.
• No auto-migration: Existing Call Ads lacking URLs will not migrate automatically. Advertisers must update these manually to comply with the new requirements.

For advertisers that rely on Call Ads for lead generation, immediate action is necessary to transition to the RSA format to keep their ads operational. This upgrade aims to streamline asset management and expand reach without compromising ad performance, as per Google’s statements.

Following the transition, advertisers will be unable to create Call Ads in the previous format. Google advises taking proactive steps now to upload essential business information, add final URLs, and begin creating Call Ads in the RSA format to prevent disruption.

This RSA format upgrade presents an opportunity for more flexibility and reach, but advertisers dependent on Call Ads should make the necessary updates soon.

Meta introduces automatic ad adjustments

Meta has recently rolled out automatic adjustments for ad accounts, enabling its automated system to implement changes such as pausing campaigns, adjusting budgets, and consolidating audience segments without prior advertiser approval. Here’s what to know:

• Pause or activate campaigns: Meta can halt or restart campaigns as deemed beneficial.
• Adjust budgets: Budgets may automatically increase or decrease.
• Consolidate audience segments: Changes in segmentation can occur without notification, potentially undermining advertiser strategy.

Advertisers are not notified of changes, leading to confusion and unexpected drops in ad performance. While automation is intended to help performance, some advertisers have reported unforeseen budget fluctuations, disrupted audience segmentation, and diminished control over campaigns. For instance, advertisers noticed declines in ad spending or automatic consolidation of lookalike audiences, negating their strategic segmentation.

How to opt-out: To disable automatic adjustments:

1. Navigate to All Tools.
2. Select Automated Rules.
3. Click on See Automatic Adjustments.
4. Access the Manage Automatic Adjustments page.
5. Toggle the feature OFF.

Advertisers should review their ad account settings immediately to determine if they’re comfortable with Meta’s automatic adjustments. For those prioritising control and oversight, disabling this feature may be the best approach to avoid unintended changes.

Google tests video-enabled shopping ads in search results

Google is experimenting with a new video functionality in shopping ads, introducing a play icon that transforms into a "watch" button upon hovering. This feature enables users to view product videos directly within search results, potentially improving ad engagement while concerns increase about reduced traffic to landing pages.

• Display: Shopping ads will feature a video play icon.
• Hover action: When hovered over, the icon changes to a "watch" button.
• Video playback: Clicking the button opens an inline video player showcasing looped product footage.
• In-search viewing: Videos play directly within the search results page, keeping users on Google.

This functionality could result in higher interaction rates, as video ads typically outperform static ads in engagement metrics. However, it may lead to decreased traffic to landing pages, shifting focus from website visits to in-ad interactions.

This isn’t Google’s first venture into video-enabled search ads; a similar feature was tested in 2018, highlighting an ongoing interest in rich media advertising formats.

Keep an eye on whether Google broadens this feature rollout and its potential impact on ecommerce conversion rates. This test reflects Google’s strategy to merge traditional search ads with rich media formats, crafting more engaging user experiences and aligning with recent tests of interactive elements that aim to keep users engaged within Google's ecosystem.

Google expands Travel Feeds in Search Ads

Google is expanding its Travel Feeds feature within Search Ads, enabling hotel advertisers to showcase dynamic, real-time data, such as prices, availability, ratings, and images. This initiative seeks to improve user engagement and improve the overall advertising experience in the travel sector.

Dynamic display: Travel Feeds will present real-time information about hotels, activities, and other travel-related services directly in search ads.

Automatic integration: Advertisers with existing travel feeds linked to Google Ads will find their data automatically integrated into both new and existing campaigns.

Easy setup: For those without a travel feed, the setup is straightforward, with options to opt out at both the account and campaign levels.

The inclusion of rich, dynamic data in ads can lead to increased click-through rates and improved user experiences. Providing information such as pricing and availability enables potential travellers to make informed decisions swiftly.

Google reports that advertisers utilising Travel Feeds are already experiencing higher engagement and conversion rates. This feature highlights Google’s commitment to maintaining ad relevance in the travel space while offering advertisers a powerful tool to attract potential customers.