Google has been active with Google Adwords updates including a new interface, new Adrank improvements based on ad extensions, and testing ad variations on Mobile and Desktop Google searches.
I noticed Google testing new PPC ads on Mobile phones for at least the last few months. They started showing ads with a white background that look more like an organic listing with a very small yellow tag that says ads. This is to increase more clicks and revenue since cost per click value has been on a steady decline for the last 8 quarters for Google.
This is due to the increase in mobile searches where they have stated that 40% of the traffic on YouTube is via a mobile device. They recently blended mobile and desktop PPC with enhanced campaigns and stopped allowing dedicated mobile campaigns that would help reduce the cost per click. And now it looks like they are testing ways to increase revenue with making ads look more like organic listings.
Part of the solution to increase revenue recently was making everyone have “enhanced campaigns” that force your Pay per clicks ads to show on mobile devices even if you don’t have a mobile friendly website which over 90% of small businesses don’t.
What’s interesting is I only noticed these new ad types on mobile devices but as of today you can see below they are testing these new PPC ads on desktop searches as well. I did notice if I was logged into Google I didn’t see these new text ads. But when I was logged out they did appear as of today. If they keep this format I can see CTR (click through rates) increasing and Google increasing their PPC revenue to combat the downward CPC (cost per click) trend.
Here is an image of the new Google Adwords PPC text ads that have the white background. There are stats showing that 40% of searchers don’t even know or understand the difference between organic results and listings and Google’s PPC ads. If they keep this new format I see that number rising further. Google is really doing everything in their power to devalue SEO and grow PPC. This is one of many changes that are going to help that cause.
