On Tuesday, May 24 Google held a conference announcing big changes in the way ads are delivered. Google is searched trillions of times a year, and more than half of all searches are done on mobile devices. Mobile ads represent revenue potential. Since it’s easy to scroll past ads on mobile phones, Google has decided to show more, and bigger, ads on mobile devices.
Ads that run atop search results will now show two-line titles and longer descriptions – up to 80 characters. Ads will still be able to show an image and a URL, and Google will make it easier for users to create ads with an intuitive ad creating too.
But the biggest change will be to ads on Google maps. Businesses will be able to add sponsored pins with their logos and promotions along Google maps driving routes. These ads will show discounts or specific products relevant to a search – as well as product inventory at the store – on the map.
So why is Google making these changes? Perhaps since 90% of Google’s revenue came from Ads last year, and it looks like growth in ads is down from 15 to 9% this year, it’s a revenue thing. I mean, do users really need to see more and bigger ads?
And marketers generally bid less for mobile ads because they lead to fewer tracked sales. Now that people are using mobile devices to search more, and mobile makes up a larger share of ads, Google ad growth is down. Google said advertisers paid it 9% less per click on ads from the same period a year earlier.
Google also said it is going to start trying to get marketers to pay more for mobile ads by offering tools that track users’ locations to tell with 99% accuracy if a user visited a store after seeing a relevant search ad. In addition an executive from Google said there is no way to turn off promoted pins.
Check out our other Q&A videos and stay tuned for many more to come.