The world of PPC never sleeps, and 2022 was no exception. This year, supply chain disruptions, evolving consumer behaviors, and soaring inflation presented significant challenges for small and medium-sized businesses. As if that wasn’t enough, Google decided to shake things up as well.

This article will delve into the top 10 Google Ads changes from the past year that will impact your 2023 strategies. We’ll also provide practical tips to help you adapt along the way. Be prepared for a blend of positive, negative, and even some questionable updates. Let’s dive in!

The most important Google Ads updates for 2023

Here’s what we’ll cover:

1. Widespread cost-per-lead increases
2. The end of expanded text ads
3. Smart Shopping and local campaigns get phased out
4. Similar audiences are on the chopping block
5. New competitive insights appear on the SERP
6. A new ad type emerges for the automotive industry
7. Business name and logo ad assets are introduced
8. Video ads gain a new voiceover feature
9. Audio ads expand to YouTube and smart speakers
10. A broad match beta test raises eyebrows Looking for the latest Google Ads trends and predictions for 2024? We have you covered.

1. Cost per lead increases (nearly) across the board

A recent Google Ads benchmarks report from nexus-security revealed a significant rise in cost per lead—affecting a staggering 91% of industries. The overall average increase sits at 19%, but certain sectors like Arts/Entertainment, Travel, and Furniture experienced massive jumps of 134%, 69%, and 54% respectively. The data suggests that factors such as inflation-driven price hikes and ads appearing for low-intent queries have contributed to decreased conversion rates, ultimately driving up CPL.

Strategies to reduce your cost per lead in 2023:

• Get the PDF guide of the report and explore our recommendations tailored to the latest trends, including adopting a full-funnel strategy and maintaining meticulous negative keyword lists.
• Implement our proven tips for lowering your Google Ads cost per lead, no matter the economic climate.

2. Expanded text ads finally meet their end…

Crafting the perfect text ad is a point of pride for marketers. For the past 22 years, advertisers have poured their efforts into writing, testing, and optimizing PPC ads on Google. Over time, Google introduced new search ad formats. In 2016, Expanded Text Ads doubled the size of standard text ads. And in 2018, they grew even larger. However, after years of evolution, Google officially retired Expanded Text Ads in June, signaling the end of an era for the ad format that once defined PPC advertising.

Moving forward, Google’s default ad type is the responsive search ad (RSA). RSAs allow advertisers to provide multiple text assets, enabling Google to dynamically assemble the most relevant ad for each search query on the SERP. Driven by machine learning and a robust asset library, this ad format has the potential to generate over 40,000 unique ad variations. However, critics argue that RSAs can produce ineffective combinations and might not always deliver optimal performance. This change fundamentally limits brands’ control over their messaging and A/B testing capabilities on the SERP.

Microsoft initially planned to follow suit and discontinue Expanded Text Ad support over the summer. However, they have since decided to deadline for ETAs back to February 2023.

Effortlessly master RSAs in 2023:

RSAs are here to stay. Utilize our responsive search ad template to craft high-performing assets for Google to assemble into compelling ads.

3. …as do Smart Shopping and local campaigns…

Ecommerce marketers are well-acquainted with shopping ads. In 2018, Google launched Smart Shopping campaigns to simplify the process of promoting shopping ads across Search, Display, and YouTube. By simply providing a product feed in Google Merchant Center, businesses of all sizes could tap into Google’s vast network of high-value placements. Similarly, Local Campaigns were introduced in 2019, empowering local businesses to promote their Google Business Profile across Google Search, Maps, Gmail, Display, and YouTube. Both campaign types offered exceptional ROI on limited budgets and automated a significant portion of campaign management. However, earlier this year, Google phased out the creation of both Smart Shopping and Local campaigns, automatically “upgrading” them to Performance Max campaigns. Performance Max campaigns, Google’s latest offering, boast several unique features and expand reach across new ad placements, including the Google Discover feed. This move is seen as a positive step by many. Increased reach, additional placements, and enhanced automation have led to higher conversions and lower CPAs for numerous advertisers, all while simplifying campaign management.

Image source However, not everyone is thrilled about the discontinuation of Smart Shopping and Local campaigns. Google’s fully automated Performance Max campaigns thrive on substantial data and budget. While technically operational on any budget, advertisers tend to observe optimal results with daily budgets of at least $100. While some view the expanded ad inventory as incremental reach, others express concerns about the added uncontrolled costs.

Navigate PMax with confidence in 2023:

Google continues to introduce new features and tools for its flagship campaign type, but is it the right fit for you? Explore our resources to determine the best approach:

• Google Ads Performance Max: 10 Dos, Don’ts, Watchouts & Workarounds
• Should You Use Google Ads Performance Max? Pros & Cons
• 10 Ways to Optimize Your Performance Max Campaigns for Real Results

4. …and similar audiences are next

About a decade ago, Google introduced Similar Audiences as a way to complement advertisers’ remarketing efforts. The success of Facebook’s lookalike audiences prompted Google to invest further in Similar Audiences, which have since become a cornerstone of countless Google Ads campaigns. However, new privacy regulations have dealt a blow to both Google and Facebook’s audience solutions. Consequently, in November, Google announced that it plans to transition away from Similar Audiences in favor of “more robust and long-lasting” audience solutions in the coming year. Advertisers have roughly six months to leverage Google’s Similar Audiences in their campaigns. Starting in May 2023, Similar Audiences will no longer be available for new campaigns or ad groups. Shortly after, in August 2023, they will be completely removed from all campaign targeting options.

Google strongly encourages advertisers to proactively update their audiences before the migration. They recommend prioritizing first-party data, such as Customer Match data, to create new audiences. Additionally, leveraging Smart Bidding strategies and optimized targeting is crucial for maintaining campaign performance. Advertisers seeking to expand their reach beyond first-party data may find value in exploring Google’s audience expansion once Similar Audiences are phased out.

Interestingly, Microsoft doesn’t seem to be mirroring Google’s approach in this instance. On the same day that Google announced the end of Similar Audiences, Microsoft Advertising revealed plans to expand its Similar Audience solutions to more markets internationally.

Reach the right people in 2023:

Our Google Ads Audience Targeting Cheatsheet provides a comprehensive overview of your targeting options, empowering you to make informed decisions.

5. New competitor advertising insights on the SERP

After three pieces of not-so-great news, let’s shift gears to some positive developments. In 2021, Google announced plans to expand its advertiser verification program and enhance ad transparency for users encountering targeted ads both on and off the SERP. As part of this effort, Google launched My Ad Center in October, empowering searchers to understand how advertisers reach them. Among the features within My Ad Center is a powerful new tool known as “Advertiser Pages.” These pages provide users with a glimpse into all the ads an advertiser has run over the past 30 days. To access a company’s Advertiser Page, simply click on the three vertical dots next to an ad. For Verified Advertisers, you’ll find detailed information such as their legal business name and location. Even more intriguing is the option to “See more ads by this advertiser.”

This section displays all the ads an advertiser has run in the last 30 days, with filters for text, image, and video ads.

While this tool aims to provide greater transparency for Google users, it also presents a valuable opportunity for advertisers to keep tabs on their competitors.

Stay ahead of the competition in 2023:

Speaking of competition, the search ad landscape is becoming increasingly fierce. Equip yourself with the strategies outlined in these articles to stand out:

• How to Compete in Google Ads (without Raising Bids!)
• 3 Creative (and Cheaper) Alternatives to Targeting Competitors with Search Ads

6. Automotive gets a new ad type

The past two years have forced industries to adapt rapidly as supply chain disruptions, pandemic restrictions, and economic uncertainty continue to impact our lives. While some Google Ads changes have felt like adding insult to injury, others have been undeniably positive. Case in point: at NADA in March, Google unveiled Vehicle Listing Ads designed to assist car dealerships in showcasing their new and used car inventory. Similar to Local Inventory Ads, these new Vehicle Listings Ads occupy a prime position at the top of the SERP, prominently displaying a car’s image, price, condition, and location. Microsoft Advertising also introduced a comparable Automotive Ad format for local dealerships (along with a few other ad formats for verticals like finance and travel).

Managing Vehicle Listing Ads is very similar to managing Shopping Ads. They necessitate a regularly updated and approved inventory feed through Google Merchant Center, which previously had strict policies that largely excluded motor vehicles.

Navigating economic challenges in 2023:

The impact of the pandemic and its economic fallout are felt across all industries. LocaliQ offers invaluable resources to help you navigate these challenges:

• Marketing During Inflation: How to Adapt & Thrive.
• Marketing During a Slow Economy or Recession
• Why You Need a Digital Marketing Budget in Any Economy

7. New business name and logo ad assets

Standing out on a crowded SERP can be challenging, and businesses often grapple with protecting their brand identity from competitors or illegitimate advertisers trying to capitalize on their reputation. Google now offers Verified advertisers enhanced protection through new business name and logo ad assets on the SERP.

Image source These new assets, available exclusively to Verified advertisers, serve as a visually appealing addition to ads, potentially boosting performance. Google also anticipates that its policies for these business name and logo assets will help curb impersonation and fraudulent activities. To leverage these features, advertisers must undergo Google’s verification process. Furthermore, advertisers can only utilize this feature to display their legal business name or an exact match of their domain name. Logo assets must be prominently displayed and accurately reflect the Verified advertiser’s identity.

More insights on assets for 2023:

Speaking of assets:

• Did you know that Google rebranded extensions to assets this year? Learn more about the changes to Google Ads extensions here.
• And if you’re in the market for a new logo, explore our tips to create a perfect small business logo.

8. New voiceover features for video ads

Inspired in part by the meteoric rise of TikTok and its user-friendly editing tools, Google introduced new features for its video ad content this past summer. Among the enhancements is the ability for advertisers to seamlessly add voiceovers to existing YouTube video ads without the need for external editing. Google previously reported that less than half of video ads incorporated voiceovers. Their research indicates that including a voiceover can boost ad recall by 25% and reduce the cost per lifted user by 50% compared to ads without voiceovers.

Advertisers can choose from eight distinct voices (four male and four female) for their voiceovers, input their script, and preview and edit the voiceover directly within the Google Ads interface, eliminating the need for specialized software or video editing expertise.

Enhance your video advertising in 2023:

Video marketing continues to gain traction, and Google isn’t the only platform making it easier to produce high-quality video ad content:

• Get started with our comprehensive guide to advertising on YouTube, featuring expert insights from Jyll Saskin Gales.
• Maximize your budget with Joe Martinez’s three cost-effective tips for creating video ads.
• Stay informed about subtle but important details with these four often-overlooked video campaign settings.

9. Audio ads hit YouTube & smart speakers

With the rise of streaming and OTT services, many advertisers are adjusting their strategies and budgets accordingly. To meet this growing demand, Google announced earlier this year that it would be expanding its advertising options to its expanding audience of music and podcast listeners on YouTube through new audio ad campaigns. This new video campaign subtype targets users engaged in audio-first experiences, such as listening to music or podcasts, where traditional video content might not be as effective. Below is an example of an audio ad from Google:

Make your ads resonate in 2023:

Google’s best practices for Audio Ads suggest incorporating a static image or basic animation and prioritizing sound quality, a conversational tone, and a concise, compelling call to action. To complement this new Audio Ad format, Google also rolled out targeting for new content placements across YouTube, including Music Mood Lineups and Podcast Lineups. This allows advertisers to ensure their audio ads reach their target audience in the most relevant listening environments.

10. A broad match beta test leaves us…uncertain

We’ve covered a mix of positive and negative changes. This last one is up for interpretation. In October, Google launched a limited beta feature enabling advertisers to activate broad keyword targeting at the campaign level. Given Google’s ongoing push for broad match combined with Smart Bidding, this move wasn’t entirely unexpected. However, the prospect of an option without match types, even in beta, was met with some apprehension. Does this signal a future without keyword match types? It’s hard to say for sure. While Google has confirmed that keyword match types are here to stay, Ginny Marvin’s statement, “We have nothing else to share at this time,” doesn’t exactly inspire confidence.

Master keyword strategies in 2023:

While keyword match types are still relevant, these popular resources can help you maximize their effectiveness:

• Should You Really “Upgrade” to Broad Match + Smart Bidding?
• Google’s Changes to Keyword Match Types Explained

Thrive in PPC in 2023

While economic fluctuations and SERP changes have presented challenges, and we’ve bid farewell to some familiar Google Ads features, this year also brought welcome additions to our PPC toolkit. While the future of Google Ads remains uncertain—with change being the only constant—these tips and resources can equip you for success in 2023. Eager for more Google news? Explore the new Google Search Generative Experience here.