Google: Fateful Advertising Decision

May 19, 2017

Has Google AdWords become indispensable for business? It is beginning to look that way, we learn from the StarTribune’s article, “How Google Decided to Take Ads on the Most Prominent Real Estate on the Web.” New York Times writer Daisuke Wakabayashi describes the company’s incorporation of search-based advertising:

In the 17 years since Google introduced text-based advertising above search results, the company has allocated more space to ads and created new forms of them. The ad creep on Google has pushed ‘organic’ (unpaid) search results farther down the screen, an effect even more pronounced on the smaller displays of smartphones. The changes are profound for retailers and brands that rely on leads from Google searches to drive online sales. With limited space available near the top of search results, not advertising on search terms associated with your brand or displaying images of your products is tantamount to telling potential customers to spend their money elsewhere. The biggest development with search ads is the proliferation of product listing ads, or PLAs. In a departure from its text-based ads, Google started allowing retailers to post pictures, descriptions and prices of products at the top of search results in 2009.

Another change is the ability for advertisers to link to more general search terms; for example, users see ads for a specific Nike design when they search for “running shoes.” The company has also put resources into optimizing ad placement on both computers and mobile devices. It has gotten to the point that many companies accept a Google AdWords initiative as a necessary expense. Can anyone topple Google from this unique marketing tower?

Cynthia Murrell, May 19, 2017

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