Google is Competing With Your PPC Ads

by admin on December 11, 2009

in Adwords,Google Search Network

After I did an Adwords presentation last week in Orlando, my friend Toby Miller pointed out something very interesting on the search network. Below is an example of what we saw.  Our first instinct was that this was part of Google’s new testing with image ads, but that’s not the case at all. Depending on what you do about it, this can be good news, or bad news.  (continued below)
Picture 5

This discovery isn’t that they’re placing image ads where your text ads used to appear — it’s that they’re placing products that are listed with Shopping.Google.com in that space…

What does that mean to you? Quite simply – it means that if you’ve got physical products – you better get them onto Google’s shopping network.  If your products aren’t listed with Google Shopping, and one of your competitors’ products are — guess what… Your nicely performing Adwords ad that used to be above the fold will now be bumped down below the fold. Not only that, but since Google is giving themselves the benefit of having images next to their ads – buyers will click those ads far more often than yours – pushing your CTR (Click Through Rate) even lower, which in turn will drive up your CPC (cost per click).  For some – this will drastically decrease sales. Those will be the lucky ones.  This could very well push others out of the business!

The solution? Get your products on Google’s Shopping network before they start adding products in your niche. At least that way, you’ll have their help in selling your wares vs. helping your competition, and possibly pushing you out of that market.

PS – You can also expect to see image ads on the search network in place of text ads, but that’s another post for another day.

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1 Donna December 11, 2009 at 8:45 pm

Oh boy have I ever noticed this happening too! Not only that but the image ads are not just the “normal” online competition..now some of my keywords such as baby shower favors is popping up search results of companies I’ve never really had to compete with “per say” such as Walmart and Target. I’m working on my product list now trying to get it beefed up for submission to Google’s shopping with hopes that it will help, but how do you compete with big boys like that?

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