It’s been twelve months since expanded text ads (ETAs) were launched globally by Google. Advertisers were initially excited but hesitant to abandon their well-established ads. Now that Google Ads and Bing no longer support standard text ads, it’s crucial to examine the steps involved in transitioning to ETAs.
Expanded Text Ads One Year Later: Adoption and Performance
The good news is that 95% of search advertisers have initiated the shift to ETAs, with 71% fully transitioned and 24% in the process of migrating.
The transition has yielded positive results for the most part. In July, ETAs of advertisers who were in the process of migrating from standard text ads achieved an average click-through rate (CTR) that was 11% higher than their standard text ad counterparts.
The advantages of ETAs extend to Bing Ads advertisers as well. Bing’s search engine results page (SERP) differs slightly from Google’s, with a larger proportion of desktop traffic and the continued presence of right-hand rail ads. This variation might explain why ETAs on Bing outperform those on Google by 20%.
Therefore, most advertisers have successfully transitioned to ETAs based on almost all metrics. However, this is a simplified perspective. While many advertisers saw immediate success, there are likely challenges encountered during the transition. What made this transition harder for some? Rewriting all your ads is a time-consuming task, and it seems that in doing so, many advertisers have neglected to incorporate some fundamental best practices. This oversight might explain why some marketers are struggling with Google’s ETAs. Let’s revisit why these four best practices remain crucial.
#1. Test Multiple Expanded Text Ads in Every Ad Group
While experts emphasize the significance of ad testing, many advertisers have only tested a single ETA per ad group in their rush to implement them.
Less than 25% of advertisers followed established best practices of creating multiple ads per ad group. As a result, the total number of ads being tested in Google Ads has decreased compared to the previous year.
This is concerning since ad testing is essential for a successful paid search campaign. The focus on finding the perfect ETA or clinging to outdated standard text ads has led to a decline in ad testing frequency.
As Larry Kim advised, discovering a unicorn ad with three times the average CTR requires testing 100 different ads. While this is a considerable effort, even a small amount of testing can be beneficial.
Our research indicates that ad groups with multiple ETAs had a higher success rate during migration and achieved an average CTR that was 21% higher.
A recommended practice is to test a minimum of three different ETAs per ad group. This not only helps identify the most effective ads but also improves performance, particularly with optimized ad rotation settings.
#2. Set Your Ad Rotations to Optimize
When creating multiple ETAs, it’s essential to consider which ads are suitable for different users. For example, a phrase match keyword like “Red Sox Tickets” might trigger an ad for someone searching for “Cheap Red Sox Tickets.”
Different calls to action or offers in your ad copy will resonate differently with different user segments. Therefore, the choice of ad displayed is crucial. With even rotation, the probability of showing your best offer for a particular search is the same as any other offer.
However, by setting campaigns to optimize for clicks or conversions, Google leverages signals such as user search query, device, demographics, time of day, and past behavior to display ads that are more likely to generate clicks and conversions.
This minor adjustment becomes increasingly crucial as ad testing becomes more intricate. This simple change can also significantly impact your account’s performance. During the second quarter of 2017, we switched 419 accounts from “rotate evenly” to “optimize for clicks or conversions” ad rotation settings. The outcome? On average, an 8% rise in CTR and an 11% rise in conversion rate (CVR)!
“But I prefer even rotation to track my ad test results!” you might argue. This is a valid point, but it’s important to understand that ad rotation influences which ad enters the auction rather than which ad is displayed. While subtle, this distinction is significant because Google might lower your Quality Score and ad rank if it anticipates poor ad performance. As a result, “rotate evenly” seldom leads to equal impressions or positions for ads within an ad group. In essence, “rotate evenly” might undermine your own ad test results during their execution.
Often, “rotate evenly” hinders ad test success because account managers delay or fail to follow up on their tests. What should you do with an ad that generates no conversions or clicks? What about ads in low-traffic ad groups? If time or data constraints prevent you from analyzing these ad tests, optimizing ad rotation might be your only option for success.
Most manual ad tests use a simple one or two-variable approach. Take a look at this ad test:
Which ad performs better? At first glance, the first ad might seem like the “winner” due to its higher CTR. However, segmenting the data further…
…reveals that while the first ad excels on desktop, the second ad outperforms on tablets and mobile! While these trends might not be immediately apparent, Google considers them when optimizing your ad rotation.
#3. Use ALL the Different Ad Extensions
In the past, using all available ad extensions—sitelinks, call extensions, location extensions, and possibly an app extension—was a straightforward decision.
However, with Google’s frequent introduction of new ad extensions like callout extensions, structured snippets, price extensions, affiliate location extensions, message extensions, and the latest promotion extensions—it’s easy to fall behind. You might question the value of investing in a location extension if your goal is online conversions.
This is a misconception. Even with multiple ad extensions, the majority of clicks (89%) are on the ad headlines. While sitelinks might garner some clicks, extensions generally receive few direct clicks and are cost-effective.
So, why bother creating them? While direct clicks might be minimal, ad extensions enhance visibility. Compare the following ads—which one is more likely to catch your eye?
This one?
Or this one?
Ad extensions make your ad stand out, and even without direct clicks, they contribute to increased overall clicks. For instance, location extensions might only drive 1% of paid clicks, but ads using them experience a CTR that is almost twice as high compared to those without.
App extensions, despite driving even fewer clicks, have the potential to increase ad CTR six-fold! Besides the CTR boost, they also enhance ad Quality Score, resulting in cost savings!
Therefore, even if an ad extension doesn’t seem directly relevant to your business, don’t disregard it. It can still enhance CTR and Quality Score, benefiting all businesses. For example, nexus-security decided to use a location extension despite not expecting walk-in customers.
The outcome? Ads displayed with the address showed a CTR that was double compared to those without. Furthermore, our nearest competitor was pushed down 12 positions on the SERP. The cost for these benefits? A mere $6.04 last month.
#4. Create Ad Extensions Across the Entire Account
While most accounts have implemented common ad extensions, a concerning statistic reveals that 1 in 7 accounts fail to apply these extensions to all (or any) of their campaigns. Consequently, they miss out on the CTR and Quality Score advantages despite the effort invested in creating them!
A comprehensive account audit can uncover these oversights, but it’s easy to forget to reapply extensions when creating new campaigns. One solution is to establish generic ad extensions at the account level that are applicable to your entire business.
As you develop more targeted campaigns requiring specific ad extensions, you can implement them at the campaign or ad group level to ensure relevance. These extensions will override those at the account level. Combining account-level extensions with campaign and ad group-level extensions provides flexibility while ensuring comprehensive coverage across all ads.
While these best practices have been neglected during the transition to ETAs, implementing them is straightforward and promises significant improvements in ad performance!
Data Sources:
Unless stated otherwise, the data presented is based on an analysis of 11,014 accounts globally with active search campaigns (excluding DSA and shopping) in July 2017.