PPC industry updates

Google Ads Editor 2.8

Google Ads Editor has updated the app this November, which is exciting in the PPC world. Google continues to combine AI with transforming its advertising tools. The new features help to optimise campaigns;

• Enhanced video control: A tool to create Demand Gen campaigns based on existing video action campaigns – increases reach by including video partners.
• Create images from text descriptions: Advertisers can now generate images directly within Google Ads Editor using text prompts.
• Account level negatives: Instead of having to apply negatives to each campaign, this will be a time saver.
• Google Sheets support: Simplifying reporting and data sharing with Google Sheets exporting support.
• Resizable error pane: Easier navigation and troubleshooting during campaign setup and optimisation.

Only Google Ads Editor 2.8 and above is now supported, meaning advertisers have no choice but to transition.

Google Shopping gets smarter

In the aim to make online shopping easier and more personalised, rollout has begun for a Google Shopping interface refresh. AI is at the forefront of this transformation, Google aims to ensure the user experience is sped up and simplified. The change involves Google pairing 45 billion product listings in Google’s Shopping Graph with Gemini models.

When searching for ecom-specific products, as well as the usual Google Shopping results, below the shopping carousel and above the product listings will be an AI summary of the top recommended considerations for your search.

The example Google has provided to display the update is the search for a “men’s winter jacket for Seattle”. It is likely that beyond wanting a winter jacket, based on the location, the user will want one which is dry and warm. The new update presents an AI brief of the most important things that should be considered when purchasing a new winter jacket for living in Seattle. Beyond this, Google will ensure products shown are climate-appropriate. Coats from brands which align with the user’s criteria, for example, North Face are a known leader in outdoor clothing therefore Google would include them in the shopping results. As well as an AI overview and specific shopping results, the Google Shopping page will also include relevant article links to assist the user in their purchase consideration process.

Dynamic filters are also added to the results page, allowing users to go granular into their preferences, for example, a winter jacket nearby which has a hood. Other filters on the Google Shopping page result for “men’s winter jacket for Seattle” include fastener type, colour, and performance style. The search result page also includes the virtual try-on feature, which was launched back in June, aiming to provide users with the confidence to shop for clothes online.

The update also accounts for the time frame in which purchase decisions are made. Research is likely to take place over a few days, therefore Google Shopping retains all the selections you’ve made making it really easy to jump back into the purchase journey.

Not everyone wants such a personalised feed and may want to have broader results based on preference. Google has made it simple to turn off personalisation by simply going to the Google Shopping menu and editing ‘shopping preferences’.

As well as the usual price comparison, price insights and price tracking features which already exist within Google Shopping, the new update provides a specific page which holds all the deal information within it. Making it simple for users to analyse all the price information they need to make an informed purchasing decision.

Google’s aim appears to be improving user experience through placing focus on personalisation and ease of shopping is clear in this update. As advertisers, there is little required in relation to the interface transformation. To see benefits it could be suggested that ensuring product feeds are optimised so Google can best match your listing to the user’s search.

This new update is only being rolled out in the U.S. at the moment, but we look forward to exploring it once it comes over to the UK.

Changes to ad auction dynamics

As of October, Google is introducing changes to the way Performance Max and Standard Shopping campaigns operate.

Historically, when running both Performance Max and Standard Shopping campaigns for the same products (generally) the Performance Max would take priority in the bidding to win a position in the auction. Putting Standard Shopping campaigns at a disadvantage.

However, this update will place all auction position authority on ad rank. Where you have the same product, Performance Max will only take priority if its bid delivers a higher ad rank than the Standard Shopping campaign.

This risks an increase in CPCs for Shopping Ads as it is likely to lead to higher auction entry costs. As more ads aim for visibility, there will be more competition for positioning.

Strategies of advertisers are going to have to ensure budgets and targets are accordingly adjusted, especially as we approach a period of high-performance opportunities. Specifically with Performance Max, advertisers should ensure campaigns encompass strong asset groups, high-quality creatives and video and also URL expansion.

Google claims this update will have a “neutral or positive impact on performance at the account level” so we are looking forward to watching this play out.

Callum Leonard, Head of PPC at Embryo gives his expertise:

Expert opinion on the changes in ad auction dynamics

Callum Leonard - Head of PPC, Embryo

"This update from Google presents a required change to bring in the availability of collaborative PPC strategies including both performance max and manual shopping. Beforehand, manual shopping will simply not be spent and all of the advertising budget would run via the PMAX, however this will allow for an equal auction priority ranking. For low SKU inventory websites this presents the availability to utilise manual shopping for carousel market share, and test various audience signals and search themes through PMAX, pushing the campaign to other audiences within your vertical, whilst still maintaining your core market share. Overall I believe this is a great update from Google that only benefits the advertisers without any downside."

Google tests expandable product ads carousel

In an aim to make ads more interactive and relevant to users, Google is experimenting with expandable product ads. When in an expanded view, the user can see a carousel of the relevant search ads however they can easily collapse this view to hide the ads.

Unfortunately for advertisers, sometimes the new update initially hides the carousel, which then requires users to expand the search result to view the ads. The clear risk of this is the lack of visibility for ads which are being hidden, however there is a chance for increased ad engagement as users have more control over which ads they are seeing.

It will be key to ensure ads are being optimised whilst remaining relevant to the user to encourage this engagement. Users are being given more control over their ad exposure which is great for user experience but advertisers are likely to have to ensure their ads are those that users want to interact with.

With ease of use and accessibility being a key aspect of digital advertising, the success of this experiment raises the question; will it enhance user experience, or could it complicate engagement?

The Launch Of Google AI Overview Ads

Announced at Google Marketing Live back in May 2024, the new AI Overview ad format has begun rolling out across mobile devices in the US.

Where now upon searching a question on Google an AI curated answer sits at the top of the results page, in the US ads which relate to the search are now included in these search overviews.

An example given by Google to reporters at a demonstration was searching “how do I get a grass stain out of jeans?”. Subsequently the AI Overview result gave the user instructions on how to remove the stain followed by ads for Tide & OxiClean laundry products, displayed like a shopping ad carousel.

This update has the opportunity to improve performance as seemingly intent is behind the search. Although, Google has informed that there won’t be any separate reporting tools for ads appearing in the AI Overview.

As an advertiser, there is no action required. Existing AI-powered Search ads, Shopping and Performance Max campaigns will automatically auction for a position, and there is no option to back out.

The implementation of Google AI Overview Ads has the potential for ads to be placed at the top of the page, providing the best visibility. However, ads not shown in the search overview may be pushed lower down the page, reducing visibility and potentially limiting return on investment.

The challenge of this update lies in ensuring that ads appear in the most valuable space for optimal results.

4 New Performance Max Updates

Designed to leverage machine learning and automation in Google ads, Performance Max Campaigns are coming up to their third anniversary and Google have just announced some new updates with the aim to boost creative optimisation and campaign performance.

• Creative Reporting. Soon advertisers will be able to enhance creative asset performance through specific conversion metrics. Ad copy and assets quality are key in maximising Performance Max effectiveness, therefore gaining these insights will be crucial in improving campaign performance & testing.

• Streamlined Performance Insights. Where insights, recommendations and explanations were previously scattered across various sections this update creates one dashboard to view them all. Seemingly increasing efficiency in finding the information by centralising everything in one place.

• Target Pacing Insights. With the potential to be a great time saving update, this new insight provides advertisers the ability to track where campaigns are pacing at meeting target ROAS & CPA. Allowing advertisers to see where accounts are underperforming, helping optimise performance with greater efficiency.

• Impression Share Reporting. Providing visibility into how your competitors’ ads are showing will be invaluable in search & shopping campaigns performance through this update.

With some updates already live and others rolling out by the end of the month, these new Performance Max tools are extremely valuable to advertisers in improving ad potential through optimisation opportunities.

Google Ads Removes the Audience Insights Tab

The Google Ads Insights tab which provides automation of audience recommendations has been removed. Where previously Google would assist advertisers with targeting, this update requires users to manually identify and select audience segments. This will likely impact the general day-to-day for many advertisers, as it will necessitate a bit more effort into finding value within a Google Ads account.

Although Google hasn’t given any insight into why the update has happened, we can make two assumptions.

They may be announcing a new version of the feature in the coming weeks or months. Historically, removals have been made of popular features and then relaunched in future updates.

Alternatively an explanation could be a common business decision driver; to increase profits. Increasing manual effort in audience insights will require advertisers to use other tools and data sources to accurately identify audiences. This then also means that advertisers can’t rely on automation and may need to expand their knowledge and understanding to ensure accurate decisions are made. Therefore providing Google with more money making opportunities as advertisers learn how to target accurately. In the meantime, users are likely to make less accurate decisions in targeting thus meaning more users are targeted and larger budgets are required subsequently leading Google to profit.

To protect yourself from this update ensure to dedicate some time to familiarising yourself with who you want to identify in your audience segments and how to select these manually.

This is an interesting update in the world of machine learning where generally developments are making a shift towards automation and the use of big data. Is this a step backwards or is Google helping advertisers in their targeting effectiveness?

Google Ads Rolls Out a Useful AI Update for Brand Keyword Matching

Keyword Match Types and the logic that goes into matching them to Search Terms has been evolving and changing for years. The saying goes “Exact Match is no longer Exact”, with Google continuously trending toward less precise targeting, instead leaning on machine learning to widen the scope of keyword targeting to include longtail and new search terms that can’t be predicted.

The latest announcement from Google includes 4 key changes that will have PPC advertisers changing the way they work with their brand and the unique search terms in that sphere.

1. Mispelled search terms are becoming easier to manage! If you’ve ever struggled to add negatives of all the potential mispells of a brand term, this AI-driven update means advertisers need only add the core brand term. AI will ensure that mispells are included.
2. Brand Exclusions across ALL keywords and DSA campaigns are rolling out, expanding the Performance Max feature to core campaign types.
3. Additional suggestions for Brand keywords and search terms, which turns a Broad Match keyword into a wider brand “sphere” targeting-signal, allowing for “Brand Generic” keywords to filter through more often.
4. Previously un-trackable “Other” search terms will now start showing, giving advertisers more direct control over targeting and exclusions – this last one allows PPCers to “rein in” the expanded targeting that the expansion caters to.

All of this trends towards more consolidation in Google Ads campaign structure, encouraging less fragmentation between Brand and Non-Brand campaigns, joining them up to act as a “Messy Middle Search Campaign”.

Google Adds “Conversion Annotations” to Shopping Placements

In a world of GA4s, Consent Modes and Enhanced Conversions, we’re always grateful to see a simple, sensical update from Google, and happy days – a new one has just rolled out.

“Conversion Annotations” allow advertisers to give Social Proofing labels to products based on the specific product popularity.

For example, in PLAs you’ll start seeing things like

• “best selling”
• “1k shopped here recently”
• “100+ shopped in the past month”

The good news is this is a simple setup (IF you already have conversion tracking setup in your Google Merchant Center settings) – check out Google’s instructions in our link below.

This update is bound to increase CTR and Conversion Rate for advertisers. We’re keen on seeing what it’ll do for our own clients.

Google Adds ANOTHER 5 New AI Features To Performance Max – April 2024

Following on from the Generative AI image generation and expansion on “auto assets”, Google has announced new AI features (some of which are only accessible via select beta-testing) to Performance Max campaigns. These updates are:

1. Customer value mode: In beta, meant to help advertisers who use conversion goals to reach high-value customers – this is similar to leveraging conversion value on lead gen campaigns to use ROAS-based bidding
2. Customer retention goal: This one is also in beta, designed to win back lost customers – how effective this will be remains to be seen, but it does sound quite exciting doesn’t it?
3. Detailed demographics: Audience insights are now available for pmax for age and gender data – at last!
4. Budget pacing insights: see real-time tracking, current and projected spend and forecast conversion performance – somewhat similar to Performance Planner, but with more active insight
5. Account-level IP address exclusions: Pmax can now exclude specific IP addresses – this is very “use case” but could be useful depending on your specific circumstance rather than an account-level exclusion, this can now be limited to specific Pmax campaigns.

If you want to trial these Beta tests for yourself, speak with your Google account team.

Google Demand Gen Gets Generative Imagery Tools – April 2024

Google have announced that the new AI-powered Generative Imagery tools will soon be available to advertisers running Demand Gen campaigns.

While this is a sensical (and completely expected) update from Google, having previously brought Generative tools to Performance Max, a particularly interesting note in this update was the addition of a “Generate More Like This” feature, wherein advertisers can generate imagery similar to their best-performing assets.

(source: blog.google)

While Generative AI is currently in its infancy for Google Ads, we’re keen to see what this new feature will produce, and of course, how the assets will perform.

Google Tests ‘People Also Consider’ On Google Ads – April 2024

Google have been known to “secretly” A/B test UX and UI updates to SERPs in the past, but this new announcement from Google hints that it could be a permanent change, rather than a cloak-and-dagger test… In a nutshell, products in e-commerce and Shopping network campaigns will soon be eligible to show their competitor’s products too.

Just as e-commerce websites will suggest “You May Also Like” products to users, Google will begin testing “People Also Consider” product placements embedded within a Shopping ad placement.

This new update from Google could be controversial, as its unclear how much additional visibility could be gained on competitor products, and poses a risk that advertisers could be paying to drive purchases to competitor websites, instead of their own.

GA4 “Key Event” Update Initially Perplexes Advertisers – March 2024

Google announced a push for “greater consistency” with Google Ads, with an impending GA4 update that replaces ‘conversions’ with ‘key events’.

Most advertisers and GA4 users are used to using the same terminology as Google Ads (“conversion”), making the insistence from Kamal Janardhan, Google’s Senior Director of Product Management, that this is an “improved, more unified experience” a bit confusing.

How this will impact advertisers predominantly using GA4 goal tracking remains to be seen, but in the meantime, this could be a key step in differentiating Analytics and Ad platforms more definitively for the industry: Google Ads is a platform for performance and optimisation (conversion), whereas Analytics is arguably for reporting and measuring user behaviour (key events).

A minor difference, but an important one to keep in mind.

Microsoft Ads Introduces Insights Navigator – March 2024

Microsoft announced the launch of Insights Navigator, a new tool designed to streamline access to data and performance insights.

This AI-powered tool provides users with quick access to category and query insights, offering valuable information on user search patterns across the Microsoft ad network as well as behavioural trends.

Additionally, automatic data reports can be delivered directly to your inbox within minutes, allowing you to stay updated on relevant trends that may impact your account’s performance (positively or negatively).

With Insights Navigator, you can make swift, data-driven strategy adjustments that align with current consumer behaviour and trends, ultimately enhancing the effectiveness of your campaigns.

Microsoft Ads Launches Performance Max Globally – March 2024

Microsoft has been gradually launching their answer to Google’s “Performance Max” (named, funnily enough “Microsoft Ads Performance Max”), and now Microsoft have announced that this premier campaign type is now available to users globally as of today.

Similarly to Google’s own offering, Microsoft Ads Performance Max aims to target users across Bing’s own “messy middle”, and give advertisers a simple workflow for getting e-commerce campaigns off the ground.

This has been a long time coming from Microsoft, following Google’s path after a couple of years, but brings a whole new way to approach microsoft ads and reaching new traffic.

Consent Mode v2 & Enhanced Conversions Presents both a Risk & Opportunity – March 2024

This month, advertisers across the UK & Europe will begin navigating the minefield that the mandatory Consent Mode v2 update presents.

In a bid to strengthen compliance with data privacy laws, Consent Mode v2 requires advertisers to be more strict on their cookie policies, giving users a heightened ability to disregard cookies.

This poses a massive risk to all advertisers regardless of their preferred ad network, but Google Ads especially relies on cookie data in order to bid and optimise profitably.

The good news is that this will motivate users to migrate fully to gtag tracking – a long-standing best practice for goal tracking, and a method that Google continuously recommends for accuracy and optimisation. The other opportunity for advertisers is utilising Enhanced Conversions – an advanced user-tracking datalayer that improves Google Ads attribution and reveals “true” insight into how important assisted conversions are.

This update will undoubtedly cause a headache for advertisers as they implement and troubleshoot Consent Mode v2, but a strong focus on gtag and Enhanced Conversions will help mitigate the impacts on tracked revenue.

Gemini AI Model Integration into Performance Max – February 2024

In November, Google introduced generated AI asset functionality into Performance Max, and it looks like even more complex asset generation tools are rolling out soon – globally!

Gemini (previously known as “Bard”), will be integrated into text assets, to give advertisers more capability to properly build out their headlines and descriptions.

Google are also upgrading its image asset generation models to Imagen2, allowing advertisers to scale their creatives even further. Image editing via Imagen2 is currently only being rolled out within the US, but is expected to roll out globally within the next few months.

Consent Mode V2 – The New Requirements for Personalised Ads Across Europe – January 2024

Google will be enforcing new requirements for Google Ads throughout Europe in March, and advertisers will be required to adopt consent mode V2 to continue to show personalised or remarketing ads.

This fast rollout and deadline is due to the large legislative push regarding user consent & privacy across search engine networks.

Advertisers will need to urgently prioritise their consent & google tag manager scope, otherwise risk losing critical advertising capabilities including accurate tracking, reporting – and vitally – leveraging the strength of automated bidding, which relies on plentiful and accurate user data.

Google Readies Itself To Phase Out Third-Party Cookies Across Chrome – December 2023

Google has begun its plans to restrict third-party cookies by default, rolling out on January 1st to 1% of Chrome users globally.

This is the start to retire third-party cookies entirely in the latter half of 2024 as part of their Privacy Sandbox initiative to safeguard online privacy and limit cross-site data tracking.

Advertisers will need to ensure they have up-to-date solutions in order to continue to accurately track and not miss out on any points throughout the customer journey.

YouTube Shorts Are Now Available in Video Reach Campaigns – December 2023

As consumers engage more with YouTube Shorts on their mobiles and begin watching more online content via their TV’s – YouTube has become a prime landscape for brands to connect with their target audience.

Video Reach campaigns now offers reaching users by scaling video creative to in-feed and YouTube shorts in Google Ads.

This new development will allow advertisers to uplift their brand awareness across high-engagement networks.