Google recently confirmed that it will no longer be featuring Google Adword’s on the right side of its Search Engine Results Pages (SERPs) as has been the case for many years. According to Google, the Click-Through-Rates (CTR) for those ads and ads below the fold of the page, have not been beneficial to the people actually performing the search queries, or the advertisers paying Google for impressions. Impression costs relate to the money Google is paid by advertisers every time their ad is displayed on a Search Engine Results Page. Impressions as a cost, are important to be aware of because as an advertiser you are paying for the display of your ad and not just the actual click. So the fact that Google will no longer feature the sidebar of ads we have all been accustomed to seeing, is probably a good thing for businesses that pay top dollar for Adwords advertising every month. By having your ad only show in the top portion of the screen, you will get more visibility and the probability of your ad getting clicked on will increase.
Negatives of Google Adwords Display Change
With this announcement, you can expect the competition for Adword space will increase even more. The cost of Google Adwords will also increase due to this increased competition. Adwords work on an auction type system, which means impressions in the most competitive niches go to the highest bidder. The bidder who is willing to pay the most money to be shown in the search query results, for the most attractive buyer-related keyword terms, will get the display. Advertisers who designate their Adwords account to only pay the lowest recommend cost, will most likely show in the search results that do not contain buyer-related keywords. This change is important to advertisers because the stakes and costs for using Adwords will increase significantly. With less room for ads to be displayed, it is now time for advertisers to budget more money towards SEO, which goes after organic keyword search results aka “free search” results.
Search Engine Optimization is a wise approach to marketing online. It takes Google Adwords out of the necessary marketing budget which saves you money over time. SEO has a slower ROI but, the return in the long run is greater than that of paid search, as you are able to place your business as a local authority online permanently. Since most people these days search online for products and services they want to buy, positioning your business website and content toward your specific market and niche will have long term benefits.
Why SEO is the Better Choice For Advertising
If you are a business looking to capture more sales and leads online, local SEO marketing is the way to go. There is nothing wrong with placing some of your advertising spend on Google Adwords, which is called pay-per-click (PPC) but, it should not be your main and only source of online marketing. Adwords should only be used as a supplement and managed by an SEO professional. Only 10% of the clicks on a typical Google search, go towards Adwords advertisements. Of that 10%, it is split among all 3-4 advertisers that show in the display. The vast majority of people searching for products and services online, actually scroll down to the organic search results to make a buying decision. Why? Because of the psychology of buying. Most searchers automatically know from years of searching online, the best businesses and services are represented in the organic search results. The top websites are in the top positions due to a number of factors including website traffic, reviews, and social media based sharing. Google is increasingly doing a great job of displaying the best websites for specific search queries based on live data and social media sharing. This is why SEO is the better choice for business advertising, because SEO experts know how to take advantage of these factors.
To learn more about SEO and what it can do for your business contact us today for a free consultation and website audit report.
Learn more about Google’s Adword announcement here.