Getting to Know The New Google AdWords Algorithm

By January 13, 2014Adwords

The New Google AdWords Algorithm…What You Need To Know.

Google Adwords Algorithm UpdateIn what they announce as an improvement to their AdWords system, Google has made a change to their AdWords algorithm, which they say will allow them to “consistently show more relevant ad extensions and formats,” as released on their AdWords blog in October.

So, what exactly are these changes, and how do they affect you?

Understanding Ad Position and Ad Rank

Anytime Google makes an algorithm change, it can have a drastic impact on how you do business. Take, for example, what your ad rank was based on before the change:

Your maximum bid x Quality score = your Ad Rank.

For quite some time, that worked fine. But ad extensions have changed things up a bit, and Google needed to update their algorithm to represent this change. These ad extensions provide users with relevant and useful information, such as a phone number, location on an interactive map, or even, potentially, sitelinks. All of these extensions have proven to make ads far more useful, thus they’ve improved overall click-through rates.

As a result of the changes (and success of extensions), the new algorithm adds a new ingredient into the pot. Google AdWords Ad Rank Algorithm will now be based on:

Maximum bid x Quality score + extension experience = your Ad Rank.

Straight from the horse’s mouth, Google says that ad extensions and formats will now influence ad positioning. If two ads have the same bid and quality, the ad with more positive expected impact from ad extensions will more often than not appear higher in position. Extension experience is based on:

  • A Good Click-Through-Ratio
  • Relevance
  • Prominence in Search Results Pages

It’s Time To Give Your Ad Extensions Some Love

As a result of this change, it’s obvious that you need to give some overdue love to your ad extensions, so that you reap the benefits of this algorithm change.

One way to do this is through call extensions. In case you missed it, this past spring, Google whispered its announcement that ads with phone numbers displayed in the text would be disapproved. To combat this, you can use “call extensions.” The call extension button is only displayed on smartphones. On desktops, a phone number will appear, but is not clickable.

Another thing to make sure of is that your extensions are all in order. With this change, you lose some of your control over extensions, which might save you time and effort in the short-run, but might be a bit frustrating overall. No longer can you control which extensions might appear, and in what order. Google will show extensions based on its mathematical madness (factoring in performance and the goal to present the best results for searchers). Thus, you need to make sure ALL of your extensions are in order.

How do you do this? Being meticulous and orderly about your AdWords content is not a flaw. It’s a necessity. But it’s also a pretty complex and comprehensive task to take. OperationROI can help. Call us at 1-888-277-5429 or fill out our contact form more information.

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