ADWORDS INCREASED COST

Why the cost have increased? We have the Answer..

Freddy Czaja

News: Many AdWords advertisers have been wondering why their AdWords bills are higher since early 2017, despite the fact that nothing has changed in their ads and settings. The answer is quite simple: Google has optimized the presentation of the ads in the search results, which has increased the Click-Through-Rate (CTR) in many cases.

How the higher costs come about and who it concerns, we explain in our article.

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Who is affected and why?

The increased costs affect AdWords users who have set a higher daily budget in the campaigns to better balance between days with many clicks and days with just a few clicks. The aim of this measure was to reach as many potential customers as possible and to make the most of the available monthly budget. The following example should clarify this:

EXAMPLE
AdWords advertiser with a daily campaign budget of 10 euros (monthly budget about 300 euros), with a click price of 1 euro.

On days with just a few clicks, the advertiser spent only $4 a day. On busy days, the AdWords ad did not show up after the daily budget of 10 euro was reached - although maybe 15 clicks were possible (= 15 euro). The result was a monthly total cost of, for example, 220 euros - well below the monthly budget - because on weak days, the maximum of clicks has not been achieved.

The strategy of AdWords users has now been to adjust the daily budget in the campaign to e.g. Increased 15 euros to reach on click days as many customers - of course, aware that the weak days compensate for the expenses again and the monthly budget of about 300 euro is not exceeded.

Now that the overall click through rate of AdWords ads has increased, its possible that the monthly cost is not just 300 euros, but 450 euros.

WHAT NEED TO BE DONE?

First, the maximum daily bid of the campaign should be adjusted. Then it should be checked whether the higher expenses, perhaps, were meaningful and should be maintained. Next, it can be checked which keywords and ads are particularly affected by the higher click-through rate (CTR). It is important to ensure that the most important keywords and ads have enough budget.

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WHAT HAS GOOGLE OPTIMIZED EXACTLY?

The first step was to lengthen the ad title so that it now has more information and is more similar to organic search results. Then the field "Ad" was optically adjusted, so it does not look so much like advertising anymore. It currently displays the word "ad", outlined with a thin line. These two measures are the main changes that make AdWords ads very similar to organic search results.

WHY IS GOOGLE OPTIMIZING THE SEARCH ADS?

The main source of Google revenue is AdWords text ads. So if the CTR can be increased by optimizing the ads, the revenue for Google increased at the same time. Furthermore, the improved CTR also gives advertisers a chance, which usually has a lower display rank, since ads with a very good display length, after exhausting the daily budget, are no longer displayed, causing bad placed ads to slide upwards.

Also, a higher CTR is generally good for the advertiser as it can improve the quality score, which in turn has a positive impact on ad rank and click price.

About Freddy Czaja

SEO is the air he breaths. If it has a bit of Oxygen, he doesn't care/ He like his coffe black and cold.