Advertising is Google’s bread and butter and has helped the company grow to what is it today. Although Businesses now really question the effectiveness and quality of listings served by Google and this is well marked by falling revenues per click year after year. Usually, Google negates this by selling more Ads every year but this year they missed their revenue forecast by $1 Billion USD.
More Ads Incoming On Mobile
There have been some Google products which are widely used but were relatively ad-free, Google will now leverage them and you will soon see ads in Google’s discover feed, Google Images, and the Google app. Google will also use space more efficiently by using new ad formats called Gallery ads, Discovery ads and Showcase Shopping ads.
Google states according to their study “76 percent of consumers enjoy making unexpected discoveries when shopping. And 85 percent of consumers will take a product-related action within 24 hours of discovering a product: reading reviews, comparing prices or purchasing the product—sometimes all at once!“.
These ads are coming to YouTube’s home feed, the Gmail Promotions, and Social tabs. Discovery ads were already available for select advertisers but now they will roll out to all advertisers later this year.
This ad format will allow advertisers to bring more of their content to the search results page. Google states “By combining search intent with a more interactive visual format, gallery ads make it easier for you to communicate what your brand has to offer. We’ve found that, on average, ad groups including one or more gallery ad have up to 25 percent more interactions—paid clicks or swipes—at the absolute top of the mobile Search results page.”
Showcase Shopping Ads
This is a familiar ad format in a new form. Google will start serving these ads on Google Images, the feed on Discover, and on YouTube. According to Google, 60% of all shopping queries are from users browsing a category or brand, so they offer Showcase Shopping ads as a highly visual ad format.
Google will also launch a redesigned Google Shopping experience which will bring together ads, local and transactions in one place for retailers and brand. Users will get a personalized homepage, probably based on their search history where there will be various filters based on features. Surprisingly, Google will also act as a mediator and purchases will be backed by a Google guarantee.
People can buy confidently, knowing Google is there to help if they don’t get what they were expecting, their order is late, or they have issues getting a refund. With this new experience, we’re merging the best of Google Express with Google Shopping.
Too Many Ads?
We started the article by stating how ad revenues per click were falling and Google, in turn, sold more ads to make up for it. Well, this is another attempt to do just that (Sell more ads), but it doesn’t address the bigger problem. Because selling more might not be sustainable, there is a limit to monetization before it becomes an annoyance to the end user. Maybe Google has plans to address it, after all, we will have to wait and see.