Google recently made a big change to AdWords: right side ads have disappeared (save for PLAs and the Knowledge Graph), and there’s now an additional fourth spot above desktop search results for “highly commercial” searches. For those of us in the health care and medical industries, and for marketers in general, this is exciting news.
Many commentators have interpreted the removal of Google’s right rail ads as a death sentence. The response from top industry players has essentially boiled down to a few key predictions:
- CPCs will go up.
- Bidding wars for ad space will escalate.
- Organic traffic will be crushed below the fold.
- Search marketers are doomed to all sorts of general fire and brimstone forever.
It’s fine to make predictions – any kind of conversation on major industry news is healthy. But the assessments being made since the news broke has been so off base and defeatist. Of course there will be losers with every paradigm shift, but if you’re a serious digital marketer, you (or your clients) won’t be one of them. So, to clear the air, what follows is a more clear-eyed perspective on what’s really happening with Google’s desktop search layout update. The truth is that we have plenty to cheer about – if you’re already established in the space, this could actually be an incredible opportunity for you to get ahead. Here are five good reasons why marketers should celebrate the end of Google’s right side ads.
1. Better UI for Users
A better user experience is always a boon to astute search marketers in the long run. The right rail ad space was cluttered and distracting. I predict that the “eye path” of most users will now be squarely focused on the major paid ad positions – which is exactly what we want. If you’re consistently in the first or second spot (which is where we put in the work to be), this puts an even larger customer spotlight on your page.
2. Eliminates Junky Bidders
Getting rid of the right rail gets rid of the noise – you know, those guys who had been camping out in the 4–10 spot position on the right and bottom of the page, bidding on keywords like “facelift” or “lipo” to sell exotic creams and/or Spanx. They won’t be able to take attention away from the truly relevant results anymore because the cheap real estate on the right side of the page no longer exists. They’ll either have to make a successful push for the top spots, or fall off the face of the page entirely. Given the statistics, it’s unlikely that the former possibility is ever going to happen. Ads on both the side and bottom of the page amount to a mere 14.6 percent of total clicks, according to an article by Larry Kim on Search Engine Land. This heatmap illustrates where users’ tended to click on Google search results pages – clearly right rail ads weren’t a hot spot: With such poor performance, it’s likely that these links were only created to siphon away clicks for more relevant results. The disappearance of these ads from Google lets the users find what they want, and only what they want. No one is going to miss your company because they decided, “hmm… maybe I’ll just buy some Spanx instead.”
3. 3–4 Spot Segmentation Is A Huge Opportunity
There’s now a newly viable 3–4 spot “position-combination” for “non-core terms.” Previously, the fourth position was utterly pointless – most of our clients with strong budgets end up in the 1–2 spots anyway to maximize results, and those with limited budgets (say, less than 60 percent impression share), usually wind up in the legitimate 2–3 spots. But with the improved desktop UI, the fourth position is now much more noticeable – which, in turn, makes the third spot all the more compelling. With no ad-clutter on the right side, all four top ads look like seriously legitimate options for the user. We’re not suggesting you start bidding for fringe keywords, but for some lower-priority ad groups using non-core terms, the 3–4 position will likely become an economical place to drive traffic, whereas before the 2–3 space would have been too cost-prohibitive. A 2015 eye-tracking study illustrates my point perfectly: Without the distraction and clutter of the right rail, user attention is driven down the page more effectively, making these 3–4 positions much more impactful than before. For well-segmented campaigns run by professional digital marketers, there will be plenty of opportunity.
4. Remember, Medical Isn’t Retail (Or Lending)
The real carnage will come for those small retailers who could only legitimately compete at the 4, 5, 6, and 7 positions. Sorry, guys. Why could they exist in that space in the first place? Because some people will shop around endlessly to get $7 off a $700 TV, clicking to find shipping for $4.99 versus $8.99. They’re going to get the crust of the ad space sandwich because they won’t be able to compete with the Amazons, Targets, Best Buys, and other larger “e‑tailers” for top ad spots. Fortunately, medical and cosmetic fields just don’t have the kind of depth that retail does. There are hundreds of mortgage providers and thousands of TV sellers who can all provide a great product, and they have to compete in search placement bidding wars to survive within their own industries. In medical PPC, you won’t find a depth of companies looking to “step up” and create a bidding war. If that happens, there will be ways to combat it. But I don’t predict a price-pocalypse, and the initial data supports that notion.
5. Organic Traffic Suffers IF You Aren’t Ranked At Least #2
On desktop, if your results are generally in the third position or worse, your organic listings will be dumped below the fold – and if Google displays a map, even first and second listings will get the boot. But while this push downwards may affect your immediate visibility, there will still be large numbers of users who trust organic listings over ads. As long as you’re on the first page of results, traffic will come – those users who don’t click on PPC ads will simply scroll. Let’s be real: the world wide web is 20+ years old — people online know how to scroll.
Conclusion
Here’s what know:
- Getting rid of the “right rail” creates a more natural experience of ad results for users.
- Many of the ads camping out on the side and bottom of search results aren’t relevant, and they account for less than 15 percent of total clicks.
- The third and fourth spots offer greater visibility than right rail and bottom ads have for a price that’s just as affordable.
- Peak visibility isn’t important for medical marketers like it is for those in retail – ads in the third and fourth places are much more viable in these cases than they are for deeper markets with more recognizable competitors.
- Customers who are really going to convert will scroll down – even if your organic traffic is hurt, the most valuable customers are going to see your website.
The nice thing about these points is that they’re testable. Every week, we’re collecting good data, and there will be even more in the coming months. When we see the results, we’ll be able to react appropriately, responding to trends as they unfold. So far, we see a 0 percent week-over-week impact.