2. Jellyfish POV
The Google PPC Algorithm Change
Google to change PPC Algorithm
Google are in the process of making what could be the largest
publicised change to their PPC algorithm in recent memory. By
changing the proportion of quality score weighting to make landing
page relevancy of more importance, Google are moving away
slightly from their traditional time-honoured gauge of click through
rate (CTR) as the primary metric for an ads success.
Jonathan Alferness, Director of Search Ads Quality for Google,
AdsForSeach has said that Ads with high landing page quality will
get a ‘strong boost’ upward in the auction.
Balance of Algorithm key factors
Google have stated previously that CTR makes up 60% of their
quality score calculation, with the rest coming from relevancy
factors (previously 30%) and landing page quality (previously 10%).
Advertisers will continue to be frustrated at the lack of visibility
surrounding these factors, but having landing pages that are
relevant to the search query, the keyword and the ad copy, as well
as the site being fast to load and easy to navigate, will be rewarded
more than previously.
CTR makes perfect sense to use as a deciding ‘best’ ad measure.
Advertisers with more recognisable brands will naturally get a
higher CTR, those who take the time to correctly manage their PPC
campaigns will be rewarded with more interest from searchers in
their ad, and it stops advertisers with less relevant ads appearing
and reducing the quality of the links on the results page and the
user search experience.
More cynical analysts see using CTR as such a high proportion of
quality score as simple profiteering on Google’s part – it makes
more sense for them to get two clicks on an ad worth 60p than one
on an ad worth a pound. Moreover, it’s also better for them to have
a click on a paid link than a natural one that won’t earn them
revenue. In 2010, Google’s global revenue from Google owned
websites totalled $19.4 billion. Therefore it’s in Google’s interests
to incentivise users to write better ads. So moving away from CTR
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3. Jellyfish POV
The Google PPC Algorithm Change
as a quality score component may cause surprise in some areas.
However CTR doesn’t ensure that the users will necessarily have a
better experience once they get to the landing page.
Why more than Click Through Rate is so important
Google are constantly tweaking their natural results algorithm to
provide better organic results for the user. The objective of the
recent natural search Panda update was to remove aggregators
who give a lower quality of experience from the natural results. The
irony of doing this is that it could potentially lead to more users
clicking on the natural links (which do not generate revenue for
Google directly) instead of the paid links, hence reducing their
revenue. Even if the ad looks appealing, there is a risk that users
could lose faith in sponsored links. Google seems to be addressing
the problem by demonstrating they take user experience seriously
no matter what search link, natural or paid, the users use.
The average PPC advertiser is likely to be more concerned with CTR
than landing page quality. It is of course much easier to write a
better ad which will automatically be shown more if it garners a
higher CTR, than to change landing pages and perform landing page
tests.
The challenge to Agencies and Clients
This therefore provides a slightly greater challenge for PPC
agencies, many of whom do not see landing page optimisation as
within their remit. Jellyfish differ from many agencies in the fact
that we understand the importance of user experience, and as a
performance agency we have always consulted and advised clients
on providing landing pages optimised for conversion and giving the
best experience for their customers.
Despite the change however, PPC advertisers should still optimise
their landing pages for conversion to make the most of their
advertising spend. PPC in its nature is better suited to generating
revenue than the natural links, which lend themselves more to
brand building strategies.
So advertisers should be careful not to hamstring their campaigns
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4. Jellyfish POV
The Google PPC Algorithm Change
by developing landing pages they think may be better from
Google’s algorithm’s perspective but that convert less well. Being
more concerned with quality score and not sales is a mistake
advertisers make all too often.
It seems CTR will remain the main component of the quality score
for the foreseeable future, not only for profit maximisation
reasons, but also because it’s a good way to reward good
advertisers and keep sponsored links relevant.
As with any change to the algorithm, Google’s intention is to deliver
a better quality of service to its customers – and by customers they
mean the people searching, not necessarily their advertisers.
Therefore any change that rewards PPC advertisers who don’t
concern themselves solely about CTRs but about the whole
customer journey will be welcomed by Jellyfish.
Mark Deeprose, Creative Director at Jellyfish, whose team have
responsibility for landing page design and development, states ‘We
have always believed that a successful PPC campaign didn’t just
end at the point of click and that well designed landing pages that
clearly communicate the proposition and provide value to the users
are an essential part of any effective strategy’.
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