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Google Instant: How paid search has changed

Istock 6714851 - 3D character holding magnifying glass searchThe jury’s still out on the long term usefulness and practical implications of Google Instant, the new feature rolled out in early September that shows search results as you type. Many have described the feature as an unwanted distraction, while others have heralded its launch as the death of SEO.

New data from Marin Software shows that Google Instant may be having a profound effect on our search behaviour and, for marketers, this could significantly impact some paid search campaign performance measures.

What changed:

  • Paid search impressions are up 9.31%
  • Clicks on paid listings are up 5.63%
  • CTRs (click through rates) are down 3.37%
  • CPCs (cost per clicks) are down 3.47%
  • BOTTOM LINE: Total costs are up 1.96%

So, more impressions as expected (a pause of 3 seconds while typing now creates ads impressions) and more clicks on ads. But lower CPCs, likely due to advertisers’ budgets being fixed resulting in less bidding competition as daily spends targets are used up more quickly with those extra impressions. However, if advertisers now increase their budgets to take advantage of the new inventory that Google Instant provides, bidding competition may increase and CPCs may return to previous levels. All of which would be good news for Google because they would have increased advertiser spending by maybe 3-5% while also delivering more traffic to their paying advertisers’ landing pages.

Short searches (3 words or less) also generated a greater uplift in paid ad impressions showing how, as expected, users are now interacting more with the search results as they type, especially the topmost paid listings:

Chart: search performance changes by query length

But what of the quality of these clicks? More traffic at the same cost per click sounds like a fair formula for most advertisers but if the quality of these sales leads diminishes because searchers are being more exploratory while searching will this really translate into a better ROI for marketers?

Marin was unable to track user journeys right through to conversion (where a user takes the desired end action, e.g. orders a product or downloads a white paper) so it’s not clear if the final conversion has been positively or negatively impacted. Stay tuned for future research which will attempt to answer this great unknown…

Google Instant: advice for search marketers

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Google recently announced Google Instant, a new feature in their search engine which delivers immediate search results as you type. The Instant experience is available to everyone in the USA, as well as in selected other countries including the UK if you are signed in to a Google account.

As you can see from the example above, if I type “how many”, Google reads my mind and deduces that I almost certainly need to know how many calories there are in a banana. It also offers a few fall back options including “how many weeks pregnant am I?” It’s not a precise science and some of the suggestions are rather comical.

Reactions to the new feature have been mixed. It’s certainly an impressive capability when you first try it out; it’s strangely mind-blowing to see the Internet returning ranked search results so quickly. Google claims that this new feature can save 2-5 seconds per search and are positioning it as a productivity tool. Others, however, have criticised the change as an unnecessary distraction, or as a simple money-making scheme this greatly increases the number of search impressions that Google can deliver (if you pause for 3 seconds or longer while typing, the displayed instant search results are counted as full impressions).

But what does this change mean for digital marketers thinking about their SEO strategy? A number of key principles are starting to emerge:

  1. Shorter keywords will take on more significance. If you’ve optimised your PPC campaign around exploiting the long tail (e.g. “spreadsheet software free trial download”) you may now need to give more attention to shorter phrases (e.g. “spreadsheet software”).
  2. The more specialist you are, the less impact this change will have. If you buy generic keywords, you may have to rethink your strategy as the amount of competition just increased dramatically. If, however, you buy very specialist keyphrases, your customers are still likely to find you, with or without Google Instant.
  3. Novice searchers may become more inclined to search. Less prolific web users may find the suggestions proposed by Google Instant helpful as they’ll stumble across things they might otherwise not have found. This could bring new business opportunities to savvy search marketers who can figure out how to tap into these novice searches.
  4. Distractions could create opportunities. Popular short search phrases (like “cheap summer vacation”) could present new eyeballs to cleverly related search queries. So, for example, a hire car company that can optimise their site content or PPC against “cheap summer” might be able to attract new customers who could become distracted from their initial search intent (i.e. “we’re going to need car hire anyway, let’s take a look at that first”)
  5. imageYour brand’s spelling might take on new importance. Type ‘t’ into Google Instant in the UK and Tesco comes out first in the list, due to Tesco’s popularity. Yet every search result listing below the suggested alternatives (TFL, The Sun, Topshop etc.) relates exclusively to Tesco. If the spelling of your brand competes with other bigger brands in a related category this  could cost you valuable traffic. And if you’re starting a new business, a name beginning with X or Z might take on additional appeal! Commonly misspelled brand names may also suffer with a greater number of similar alternatives being proposed ahead of the actual brand the searcher is trying to find.
  6. People searching away from the Google site are unaffected. This feature only works within the Google site. If users search in the search box provided in their browser or through other applications, the way their search results are returned is unchanged. For now, at least.
  7. Bad people may be quick to exploit this. People who use search for malicious intent will exploit this, as they do every other tool at their disposal, to prey on vulnerable Internet users. Hopefully Google will be alert to the problems like this that real-time results can create.
  8. Things just got a little bit more complicated. We can no longer assume that searchers will type a complete search query before finding a link they like. However, it’s important to remember that search behaviour is fundamentally unchanged from the olden days of Google “Non-Instant”. People will still use search engines to find things they are looking for. They may get distracted from their goal more easily or stumble upon their intended destination in different ways, but they’ll still use the same language to begin their query and respond to the same rational and emotional triggers. As with every aspect of marketing, if you understand your target audience you should be able to quickly determine how the new instant era will affect them.

Further reading:

  1. Google Instant summary: http://www.google.com/instant/
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