Jellyfish Agency google Paid Search POV


Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Jellyfish Agency google Paid Search POV

  1. 1. Jellyfish POVThe Google PPC Algorithm Change14| 10| 2011© Jellyfish Online Marketing Ltd 2011
  2. 2. Jellyfish POVThe Google PPC Algorithm ChangeGoogle to change PPC AlgorithmGoogle are in the process of making what could be the largestpublicised change to their PPC algorithm in recent memory. Bychanging the proportion of quality score weighting to make landingpage relevancy of more importance, Google are moving awayslightly from their traditional time-honoured gauge of click throughrate (CTR) as the primary metric for an ads success.Jonathan Alferness, Director of Search Ads Quality for Google,AdsForSeach has said that Ads with high landing page quality willget a ‘strong boost’ upward in the auction.Balance of Algorithm key factorsGoogle have stated previously that CTR makes up 60% of theirquality score calculation, with the rest coming from relevancyfactors (previously 30%) and landing page quality (previously 10%).Advertisers will continue to be frustrated at the lack of visibilitysurrounding these factors, but having landing pages that arerelevant to the search query, the keyword and the ad copy, as wellas the site being fast to load and easy to navigate, will be rewardedmore than previously.CTR makes perfect sense to use as a deciding ‘best’ ad measure.Advertisers with more recognisable brands will naturally get ahigher CTR, those who take the time to correctly manage their PPCcampaigns will be rewarded with more interest from searchers intheir ad, and it stops advertisers with less relevant ads appearingand reducing the quality of the links on the results page and theuser search experience.More cynical analysts see using CTR as such a high proportion ofquality score as simple profiteering on Google’s part – it makesmore sense for them to get two clicks on an ad worth 60p than oneon an ad worth a pound. Moreover, it’s also better for them to havea click on a paid link than a natural one that won’t earn themrevenue. In 2010, Google’s global revenue from Google ownedwebsites totalled $19.4 billion. Therefore it’s in Google’s intereststo incentivise users to write better ads. So moving away from CTRPAGE 2
  3. 3. Jellyfish POVThe Google PPC Algorithm Changeas a quality score component may cause surprise in some areas.However CTR doesn’t ensure that the users will necessarily have abetter experience once they get to the landing page.Why more than Click Through Rate is so importantGoogle are constantly tweaking their natural results algorithm toprovide better organic results for the user. The objective of therecent natural search Panda update was to remove aggregatorswho give a lower quality of experience from the natural results. Theirony of doing this is that it could potentially lead to more usersclicking on the natural links (which do not generate revenue forGoogle directly) instead of the paid links, hence reducing theirrevenue. Even if the ad looks appealing, there is a risk that userscould lose faith in sponsored links. Google seems to be addressingthe problem by demonstrating they take user experience seriouslyno matter what search link, natural or paid, the users use.The average PPC advertiser is likely to be more concerned with CTRthan landing page quality. It is of course much easier to write abetter ad which will automatically be shown more if it garners ahigher CTR, than to change landing pages and perform landing pagetests.The challenge to Agencies and ClientsThis therefore provides a slightly greater challenge for PPCagencies, many of whom do not see landing page optimisation aswithin their remit. Jellyfish differ from many agencies in the factthat we understand the importance of user experience, and as aperformance agency we have always consulted and advised clientson providing landing pages optimised for conversion and giving thebest experience for their customers.Despite the change however, PPC advertisers should still optimisetheir landing pages for conversion to make the most of theiradvertising spend. PPC in its nature is better suited to generatingrevenue than the natural links, which lend themselves more tobrand building strategies.So advertisers should be careful not to hamstring their campaignsPAGE 3
  4. 4. Jellyfish POVThe Google PPC Algorithm Changeby developing landing pages they think may be better fromGoogle’s algorithm’s perspective but that convert less well. Beingmore concerned with quality score and not sales is a mistakeadvertisers make all too often.It seems CTR will remain the main component of the quality scorefor the foreseeable future, not only for profit maximisationreasons, but also because it’s a good way to reward goodadvertisers and keep sponsored links relevant.As with any change to the algorithm, Google’s intention is to delivera better quality of service to its customers – and by customers theymean the people searching, not necessarily their advertisers.Therefore any change that rewards PPC advertisers who don’tconcern themselves solely about CTRs but about the wholecustomer journey will be welcomed by Jellyfish.Mark Deeprose, Creative Director at Jellyfish, whose team haveresponsibility for landing page design and development, states ‘Wehave always believed that a successful PPC campaign didn’t justend at the point of click and that well designed landing pages thatclearly communicate the proposition and provide value to the usersare an essential part of any effective strategy’.PAGE 4