Google Tweaks Search Formula to Make Ads Stand Out

Yesterday, Google made a significant change to the way ads are displayed in the website's search results. This change may cause users to see larger and more link-heavy search ads at the top of the search page. The reason for this is primarily that Google wants to stimulate advertisers to use Google's "Ad Extensions" more through this adjustment, ultimately making search ads bigger and more profitable.

Google's New Algorithm Makes Ads More Prominent

This search algorithm adjustment mainly focuses on the method of displaying ads on the search results page. By encouraging advertisers to use Google's "Ad Extensions" more, the ads on the search results page become larger with more links. At the same time, this adjustment will also penalize users who do not use Google's ad extensions — which is why this adjustment can lead to more ads using "Ad Extensions" and more users seeing these ads in their search results.

Google's previous standard search ads were very simple, appearing in a yellow box at the top of the Google search results page, showing the company name and corresponding URL link, possibly including a brief summary and description. In contrast, after this adjustment, the display method of ads using Google's "Ad Extensions" will undergo significant changes.

Google displays ads based on the so-called "AdRank" rule, which selects according to the entered search keywords and ultimately shows the best ads. However, Google has only just incorporated "Ad Extensions" into the AdRank rule. Regarding this, Google explained as follows: "Ad extensions and formats may now affect the position of ads on the search results page. If two competitors' ads have the same bid and quality, then the ad using ad extensions will achieve better results and thus will often appear higher in the ranking of the displayed results."

In addition, Larry Kim, founder of search marketing company WordStream, commented on Google's aforementioned adjustments. He said that Google did not announce this adjustment through a statement, so the industry should take it very seriously. In fact, Google should emphasize that AdRank is not only based on a company's overall ad quality but also considers the quality of competitors' ads. As a result, if a company uses ad extensions, it will receive a higher AdRank in the ad display results and thus appear in a more prominent position. Consequently, the cost-per-click (CPC) of such an ad will also decrease accordingly. On the other hand, another company may not appear in a prominent position due to its lower ranking in the ad display results, causing its CPC to rise. In other words, price is not only determined by what companies bid on, but also depends on the content of competitors' ads. For advertisers, this bidding process often leads to increased advertising costs for those who do not pay attention to ad extensions.

In short, advertisers who rank lower in AdRank may end up paying more for their ads. Kim claims that Google essentially wants advertisers to use "Ad Extensions," making the sponsored ads on Google's pages appear more prominent than before. Unfortunately, advertisers tend to be lazy and slow to act. Therefore, in the future, Google will not only reward and incentivize advertisers who use "Ad Extensions," but also penalize those who do not use them.