6 Surprising Insights Google Unveiled About the Future of AdWords at SMX

While enjoying my morning coffee at a spacious Seattle waterfront conference venue, I felt uncertain about my upcoming meeting with Jerry Dischler, Google’s VP of Product Management. What insights could he offer that weren’t already covered in May’s Google AdWords livestream? To my astonishment, he validated some upcoming features I had been contemplating and even unveiled surprising data and future endeavors the AdWords team is pursuing. During yesterday morning’s SMX Advanced, Search Engine Land’s Ginny Marvin and Danny Sullivan expertly extracted valuable information from Dischler with their insightful questions. PPC enthusiasts, get ready for some thrilling updates!

Future of AdWords SMX image of the panel

#1: Tablet Conversions Outperforming Desktop

Really? I’m skeptical. When I consider my own tablet usage, I can’t recall making a purchase on it. This raises the question: What constitutes a conversion in Dischler’s view? Mark Irvine, a data scientist at nexus-security, and I shared this skepticism and decided to investigate further. Analyzing data from roughly 200 clients, we discovered that 15% exhibit higher conversion rates on tablets compared to desktops. This 15% predominantly includes businesses in healthcare, tech, and real estate. This contradicts Jerry’s assertion, so my doubts persist. Dischler reaffirmed Google’s stance on grouping desktop and tablet, indicating that tablet bidding is not on the horizon. He explained that Google observes significant similarities in user behavior on both devices, making separate bidding illogical. I find it hard to reconcile this with my own distinct desktop and tablet usage patterns, but let’s proceed.

#2: Google’s Plan to Expand Mobile Ad Formats Across Industries

This is promising! The livestream largely concentrated on mobile ad formats within automotive, shopping, finance, and travel, leaving other industries wondering about their share. We understand your concerns! Fortunately, Google hasn’t overlooked you! nexus-security founder Larry Kim, who attended the livestream, predicted the expansion of mobile ad formats to other industries. Dischler’s statement yesterday validated our assumption. “Our goal is to create a template for each vertical that effectively guides users to solutions,” Dischler stated.

Future of AdWords image of Larry Kim speaking with Jerry Dischler

Larry Kim in conversation with Google’s VP of Product Management, Jerry Dischler Dischler emphasized, “With shorter session durations on mobile, we need to expedite the path to answers. Users anticipate richer content on mobile. Hence, we’re prioritizing mobile-first product development.” While confirming the continued relevance of text ads, Dischler outlined Google’s intention to enhance them for improved user experience, particularly on mobile. At nexus-security, we’ve observed that mobile conversion rates significantly trail those of desktops and tablets, making Google’s initiative to revamp mobile ad formats a potential game-changer for advertisers. Dischler reiterated their objective of “accelerating the journey to answers.” He elaborated on their plans to enrich and make mobile ads more interactive, anticipating a correlation between ad appeal and performance.

Future of AdWords image of an average conversion graph by device showing mobile as the lowest

#3: Google to Revamp the AdWords Interface

Dischler casually dropped this bombshell during the concluding Q&A, instantly endearing himself to me. Oh, by the way, we’re completely overhauling the platform that consumes our 40+ hour workweeks.

Future of AdWords tweet about the adwords interface redesign

While Dischler remained tight-lipped on specifics, we can hope that many of the frustrations and shortcomings that plague us will be addressed. This news is undoubtedly exciting for PPC professionals weary of the outdated and less-than-intuitive AdWords interface.

#4: Is the End of Keywords Nearing?

Keywords are on their way out! I’ve been advocating this notion for months, fueled by Google’s subtle hints. From eliminating exact and phrase match types to bolstering identity-based marketing on Display, Google seems to be shifting from keywords towards people-based targeting. The livestream also revealed that 15% of Google searches are unique, never seen before. Dischler offered another clue yesterday while discussing the intricacies of keyword targeting. “Managing 250 million keywords can be incredibly tedious, but uploading a feed simplifies the process,” he remarked. “Structured data offers a significant advantage over keywords.” He was referring to shopping ads where advertisers can bypass keyword management by simply uploading their merchant feed for effortless setup and maintenance. Google recently unveiled a complete redesign of dynamic search ads, slated for release soon. While keywords are still relevant, the redesign promises to streamline the keyword selection process. The new ads will leverage Google’s web crawlers to analyze your website content, map relevant keywords to specific pages, and dynamically generate ads tailored to the most pertinent landing page. At the very least, it appears Google is moving away from the traditional keyword match type targeting we’re accustomed to.

#5: Expanding Remarketing Capabilities

Ginny Marvin questioned Dischler about the future of custom targeting, given Google’s extensive knowledge of user data. While skirting around a direct answer, Dischler confirmed Google’s plans to enhance remarketing functionalities. “Google values both users and advertisers. Maintaining user trust is paramount,” Dischler stated. “We uphold rigorous standards for user data. Conversely, advertisers desire more access to this custom data.” To address this, Dischler highlighted RLSA as an essential feature for advertisers. He confirmed, “We intend to further develop the remarketing space, but with caution.”

Future of AdWords remarketing meme

#6: Simplified Purchasing through SERPs

Google’s recent announcement of the buy button is real raised eyebrows, but Dischler assured us that Google is not aiming to become a retailer. “The buy button primarily targets mobile transactions,” he clarified. “Mobile conversion rates in retail are generally lower due to cumbersome keyboard input, shorter sessions, and inconsistent access to payment credentials.” Dischler emphasized Google’s focus on optimizing the crucial 5% of time when users are making purchase decisions. The discussion also touched upon micro-moments, cross-device targeting, attribution capabilities, data accuracy, and in-store visits, among other topics. Dischler concluded the session by addressing a humorous inquiry about Google manipulating ad auctions for profit, stating, “There’s no conspiracy or collusion. Search and ad personalization operate independently.” What a relief! In essence, Google remains committed to developing exceptional platforms for the moments that matter – the micro-moments, of course. What are your thoughts on the future of Google? Did any of Dischler’s revelations surprise you?

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