Do you remember that excited feeling you get on the first day of class? You know, when the instructor hands out the syllabus and you think you have a handle on everything you’ll learn? Then, a few weeks later, you feel completely lost, like you’re constantly facing unexpected challenges. That’s kind of what managing online ads felt like this year—an understatement, really! And the story isn’t over yet! But don’t stress, this post will walk you through the 10 most significant developments in online advertising during 2021 and what they signify for 2022.
Consider this your official 2022 survival guide (aka your real syllabus). Class is officially in session!
1. Google Shakes Up Keyword Matching
Keywords are fundamental to PPC, so naturally, Google had to throw some curveballs our way!
What Happened in 2021
Keywords in 2021? Talk about a rollercoaster! It began with the February retirement of our beloved modified broad match. Google’s rationale? Broad match has become more potent, and modified broad and phrase match often serve the same purpose. To say this upset advertisers is an understatement. Modified broad match was a favorite for many, offering a balanced approach. Combined with pandemic pressures and the escalating complexities of PPC advertising, many found Google’s keyword changes insensitive, unnecessary, and poorly timed. Then, just as things started to settle in September, Google announced more keyword matching adjustments, stirring the pot once again. In essence, exact match logic will now apply to all match types. If you have several eligible keywords that don’t perfectly match the search query, Google will consider both Ad Rank and relevance. This last part left many advertisers, including PPC Chat host Julie Bacchini, feeling uneasy. Hasn’t that always been the case, Google?
As if that weren’t enough, Google then declared that due to these enhancements, using multiple match types for the same keyword (if you’re combining broad match with Smart Bidding) offers no additional benefit.
This left a lot of advertisers puzzled. Greg Finn even wrote an article to argue this claim about it!
What to Do in 2022
- Since modified broad match is gone, consider pairing broad match with audience targeting as a workaround.
- Multiple match types or not, Google has a point: simplicity is key! Don’t waste time with minor variations or plurals. Focus on the essential terms and keep your keyword lists concise!
- Organize keywords into tightly themed, cohesive ad groups.
- And don’t forget about negative keywords! They can be a lifesaver if you’re stuck with less-than-ideal match types. Need to revamp your keywords for 2022? Our free keyword research tool is here to help!
2. Apple’s iOS 14 Update Rocks Facebook Advertising
Would this even be a 2021 PPC recap without mentioning the infamous iOS 14 update?
What Happened in 2021
On April 26, Apple finally launched the privacy-centric iOS 14.5 update. Users can now opt out of tracking by apps—apps like, you guessed it…Facebook. You know, the platform that relies on tracking data to help advertisers monitor conversions and build retargeting audiences? Advertisers are now grappling with incomplete data, dwindling audiences, and soaring CPMs. Not to mention the hurdles of Aggregated Event Measurement, domain verification, and shorter attribution windows. This is all because iOS 14 lets users opt out of data tracking. Look, I respect and understand the importance of data privacy. But as an advertiser, it’s frustrating. If you’re going to see ads anyway, why not make them relevant?
Image source
Now, Facebook and industry gurus are scrambling to find alternative targeting solutions.
What to Do in 2022
This might seem counterintuitive, but hear me out: don’t abandon Facebook ads! It’s still a powerful tool for business growth. Adapting and sticking with it will give you a competitive edge. We’ve got your back with resources to help you conquer Facebook advertising in 2022:
- Keep your conversion campaigns thriving with these tips.
- Generate leads without conversion campaigns using Messenger and lead form ads.
- Explore the seven strategies we’re using to combat rising Facebook CPMs caused by iOS 14.
- Embrace the Facebook Conversions API.
- Continue uploading customer lists and experiment with post-iOS Facebook ad tactics like targeting broader audiences.
3. Expanded Text Ads Prepare to Exit the Stage
Farewell, expanded text ads! Let’s just say their departure wasn’t exactly quiet. Let’s delve into the reasons.
What Happened in 2021
Back in March, responsive search ads (RSAs) took over as the default ad format for Search campaigns, replacing expanded text ads (ETAs). Then, in August, Google announced that we’d be saying goodbye to ETAs for good in June 2022. Hold on, though. ETAs will still run after the change goes live. What’s really going away is the ability to create or modify them. Advertisers will only be able to pause, enable, or remove existing ones.
What to Do in 2022
While RSAs are effective, the platform still lacks comprehensive reporting on different ad variations. And even though the transition is still months away, there are things you should be doing now to avoid a negative impact on your account:
- Start creating RSAs now and establish benchmarks to understand what to expect once ETAs are gone.
- Test your ETAs now and leverage the detailed reporting to inform your RSA strategy.
- Fine-tune any ETAs you plan to keep running after June 2022.
- Cross your fingers for improved RSA reporting—it’s a frequent request in the PPC community.
RELATED: The Top 20 (and Bottom 20!) Marketing Campaigns of 2021
4. Third-Party Cookies Get a Reprieve (For Now)
Update: As of January 2022, FLoC has been retired! Learn about its replacement, Topics API, in our coverage. Google is taking it slow with this one, like removing a bandage bit by bit.
What Happened in 2021
On June 24, Google announced the dreaded third-party cookie phaseout, pushing it to 2023. Google explained that to develop truly privacy-conscious technology, it needs to “proceed responsibly” to ensure “sufficient time for public discourse on the best solutions,” “avoid disrupting the revenue models of numerous web publishers,” and “guarantee that cookies are not replaced with different forms of individual tracking, discouraging the emergence of stealthy techniques like fingerprinting.” However, testing for FLoC—Google’s answer to behavioral targeting without third-party cookies—has been delayed until Q1 2022.
What to Do in 2022
You won’t need to take any action for FLoC yet, but stay tuned. As for third-party cookies, you’ve heard it before, but it bears repeating: prioritize collecting first-party data and explore emerging solutions like enhanced conversions (covered in our update roundup).
5. Google’s Search Terms Report Makes a Comeback (Sort Of)
Fun fact: this is one of my favorite PPC stories of 2021. Keep reading to find out why.
What Happened in 2021
Remember how the search terms report got revamped in 2020, hiding low-volume searches due to privacy concerns? It was a bitter pill for advertisers, who used to see impression and click data for ALL search terms. Then, in August, advertisers noticed something surprising: the report was displaying data for all search terms again!
Twitter thread
As it turned out, it was just a bug, leaving us quite disappointed. But there was more to the story. The search terms report changed again in September, bringing good news.
While it still doesn’t show low-volume terms that don’t meet the privacy threshold, it now includes impression data for terms that didn’t receive clicks—both going forward and retroactively to September 2020. But here’s the catch: Google mentioned that in February 2022, any search terms from before September 2020 that don’t meet the privacy volume criteria will be removed.
What to Do in 2022
Make sure to download any historical search terms report data you want to keep before February! However, the search landscape has shifted so much in the past couple of years that those old searches likely won’t have a significant impact. On the bright side, you can get more value from the search terms report in 2022 since it will offer more insights again. This wasn’t a monumental change, but it was nice of Google to give advertisers a beneficial update for a change. The platform might seem to have a mind of its own, but it’s clear they’re still paying attention to their users’ needs. This is one 2021 PPC development that makes me optimistic about 2022.
6. Google Marketing Live Leaves Advertisers Scratching Their Heads
Google Marketing Live Stream 2021 was…underwhelming, to say the least.
Image source
I love a good industry event, but this year’s Google Marketing Live summit was undeniably confusing and disappointing. Here’s why.
What Happened in 2021
One major reason for the GML2021 backlash? Customer match thresholds weren’t really lowered as promised. While Google did make these hyper-specific audiences accessible to accounts with less than $50,000 in lifetime spend, the fine print revealed they’d only be available in observation mode. This still makes them unusable for small businesses with tighter budgets. Adding to the frustration, many announcements were either so minor or convoluted that they led to inaccurate reporting in other recaps (understandably so).
What to Do in 2022
Okay, it wasn’t all bad. Confusing or not, GML2021 did introduce some useful features to leverage in the coming year, such as:
- The new black-owned business attribute in Google Shopping.
- Image extensions moving out of beta and the tROAS bidding strategy for Video action and Discovery campaigns.
- Enhanced visibility into Performance Max campaign reporting.
- My new favorite: the Insights page. This page provides a deep dive into spend and budget pacing, recommendations, and more. For me and my clients, it’s been a surprisingly valuable tool for understanding Google’s logic and brainstorming new optimization strategies.
7. Shopify & Google Become BFFs
GML2021 did have one exciting announcement: Shopify and Google are now the best of friends.
What Happened in 2021
While Shopify users could already use both platforms independently, Google announced this past spring that things are about to get much easier. Now, Shopify merchants can manage product listings across all of Google’s properties, including Maps, Images, Lens, and YouTube, in just a few clicks. They’re calling this partnership the “Shopping Graph” because it provides shoppers with more comprehensive product information and expanded shopping options.
What to Do in 2022
Shopify’s Google Channel from within the Shopping platform allows Shopify merchants to reach customers beyond search results, regardless of their Google Ads Merchant Center setup. With the buyer’s journey constantly developing, this is a glimpse into the future of capturing sales at every stage of the customer journey.
8. Facebook’s Six-Hour Outage Sends a Message
You might be thinking: “So what?”. I know I did. But for advertisers investing significant budgets in Facebook ads, it was a big deal. Let’s explore why.
What Happened in 2021
On October 4, the app, the website, Instagram, Messenger—everything Facebook—went offline for six hours on a Monday. All of their servers crashed. For users, it was a reminder to not get too reliant on social media. For advertisers, it meant lost revenue opportunities. For Facebook, it translated to a whopping $79 million in lost income. The root cause of the outage remains a mystery. But the message to advertisers was clear: always have a plan B!
What to Do in 2022
In today’s world, nothing is guaranteed. Even giants like Facebook stumble. If this doesn’t convince you to multichannel strategy in 2022, I don’t know what will! While the outage had a minimal impact on most advertisers, it highlights the importance of be prepared for advertising emergencies. By adopting a multi-channel approach, you’re safeguarding your business. If one platform goes down, you’ll still be visible elsewhere.
9. Google Ads Introduces Monthly Spend Limits
Think this is old news? You probably aren’t using a credit card to pay for Google Ads. For card users, this is a brand-new feature!
What Happened in 2021
Google discreetly rolled out monthly spending limits this year, functioning in tandem with campaign daily budgets—which remain essential. Implemented at the account level, monthly spending limits prevent overspending across campaigns. But be warned, your ads will stop running once you hit the limit.
What to Do in 2022
This is a great solution for businesses operating on a tight budget in 2022. However, be realistic when setting your limit. Setting it too low will hinder your results.
10. Facebook Pulls Back the Curtain on Ad Ranking
I wanted to wrap up with an under-the-radar PPC update from 2021. This one didn’t get much attention, but it reveals a lot about how to approach your 2022 Facebook ads strategy.
What Happened in 2021
In June, Facebook published an article and video series on how its News Feed algorithm works. The most intriguing part for advertisers? The explanation of its explanation on how it uses machine learning to deliver ads. Unlike Google, Facebook doesn’t provide advertisers with clear-cut formulas like Ad Rank or Quality Score. So when Facebook released these algorithm insights this year, it definitely piqued my interest. It boils down to three factors that determine an “ad score” (which advertisers can’t see), guiding the algorithm in deciding when and where to display your ad:
- How the ad is set up. This encompasses aspects like Facebook campaign objectives, audience targeting, location settings, and more.
- The ad’s value. An ad’s value is calculated based on the advertiser’s bid, the likelihood of viewer engagement, and the ad’s overall quality.
- Each viewer’s preferences. Just as advertisers target specific audiences, Facebook users can customize their ad preferences, providing the News Feed with additional signals about their interests.
What to Do in 2022
While bidding is mentioned, the key takeaway for 2022 is that you can’t buy quality. Facebook wants high-value ads with engaging visuals and compelling copy. Avoid what Facebook Ads deems “low-quality attributes,” such as excessive text in images, sensationalized language, or clickbait tactics.
More Than a Recap—Your 2022 PPC Toolkit!
To move forward effectively, we must understand the past. In the ever-evolving world of digital advertising, staying informed about the key developments of 2021 will help you avoid headaches in 2022. While there’s no test today, here’s a quick review of what we covered to help you prep for the year ahead:
- Google shook things up with keyword match types and behaviors. Keep your keyword lists clean and focused.
- Facebook felt the impact of Apple’s iOS 14 update. Stay agile and adapt your strategies.
- Expanded Text Ads are on their way out. Test your ETAs extensively and get comfortable with RSAs.
- Third-party cookies got a reprieve (for now). Keep an eye out for innovative first-party data targeting solutions in 2022.
- Google’s search terms report got a makeover (kind of). Make it a regular part of your routine and download any essential historical data before February.
- Google Marketing Live failed to live up to expectations. Fingers crossed for next year! (But do check out the Insights page.)
- Shopify and Google teamed up. Leverage Shopify’s Google channel to reach more customers across the funnel.
- Facebook experienced a six-hour outage. Always have a backup plan!
- Google Ads introduced monthly spend limits. Simplify your budgeting with this new feature.
- Facebook shed light on its ad ranking system. Focus on creating high-quality, engaging ads that resonate with your audience.
With these lessons in mind, a dash of automation confidence, a pinch of preparation, and a whole lot of content quality love, you’ll be well-equipped for success. Consider these insights your roadmap to a successful and profitable year.