Shopping Product Reviews

How the 6 new changes to AdWords will affect AdSense publishers

In case you’ve lived in a pit for the past few years, Google is absolutely in love with mobile traffic. We don’t need to tell you why, you know that’s where the audience is. But mobile is also where the greatest growth potential lies.

Ad networks have yet to fully crack or hack mobile ad campaigns, which means there is still a way to go to make advertisers and users happy.

But does Google still love us, publishers? Well, the messages we got from the GPS event were somewhat mixed. Most of them have little to do with AdSense directly, but can indirectly affect your earnings. So in what direction will your AdSense revenue go with these new updates on the AdWords side of the advertising market?

  1. It’s all about location, location, location – local search on Google Maps

The new Google Maps will offer attractive advertising capabilities for small businesses and local chain branches based on user location and other data.

Sounds good enough for AdWords advertisers, but what does this mean for AdSense publishers?

More inventory = less competition

The laws of supply and demand tell us that if we increase the supply of a certain product to meet the increase in demand, we will effectively stop prices from rising.

Or in terms of digital advertising: more ad inventory means decreased demand for each ad unit and decreased CPC and CPM. Unless more inventory leads to higher ad budgets, especially if the new inventory is effective for advertisers. So this can be a blessing in disguise for AdSense publishers.

Search vs. Monitor

Google prefers clicks in its own territory. Of course they do. They don’t have to share their income with publishers there. Therefore, offering advertisers a Google-owned locale-oriented inventory will most likely take a bite out of local search traffic.

Who gets paid for the built-in maps?

Will Google add ads to embedded Google Maps, and if so, who gets the revenue from clicks on these local ads?

Another good question is what will happen to those ad units and the publishers who make a living from AdSense ads on the map?

  1. Who is bigger better for? – Expanded text ads get double headlines and more characters

Advertisers will now be able to include two lines of 30 characters each in clickable headlines for their text ads and 80 characters for a description line. In general, this promises longer ads that take up more screen space in mobile searches.

This is great for Google and search advertisers, but for anyone trying to get organic traffic to monetize this is bad news. It seems that paid search ads are worth more to Google than the content they invested in creating.

  1. The fear (or not) of smart prices: better measurement of in-store conversions

On GPS, Google announced that they will now check users’ mobile location history with the PPC ads they have clicked on and then attribute conversions to AdWords campaigns accordingly.

The goal of higher conversion measurement is to attract more advertisers. If Google succeeds in this, it just means a higher demand for AdSense inventory. And that will make everyone happy.

  1. Not just responsive ad units: new responsive display ads

Creating display ads for all ad sizes can be a hassle. Especially for a small business advertiser. Very often, you end up uploading display or flash ads in the most common sizes, and that’s it.

Google wants more competition from more advertisers for more inventory. By allowing advertisers to create responsive ads that can fit in more ad units, Google basically does that. And this is great for everyone.

  1. Targeting Your Device: Changes to Device Offerings

Google hopes (and so do we) that this will allow advertisers to spend their budgets more effectively and scale their ad spend quickly. What would generate more AdSense income for you (and Google).

  1. Open retargeting: Increased AdWords demand restriction

Other ad networks may show retargeting ads to users instead of AdSense, where AdSense is not implemented.

This could lower CPCs for ad retargeting in AdSense and hurt publishers who rely on AdSense for revenue.

Oriented to advertisers, mobile and local devices

In general, ads on GPS are very much geared towards advertisers, and especially the advertising budgets of SMBs (small and medium-sized businesses) that have started migrating to the big F in increasing numbers.

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