What is a Google Ad Extension? | Marketing Term
Search Engine Marketing
If you’re looking to boost your paid search performance fast and at no additional cost, try using Google AdWords Ad Extensions. Ad extensions allow a business to add on additional information to a basic paid text ad on Google. Some examples of ad extensions include offer extensions (which adds printable promos to your ad) or ad sitelinks (which add useful, related links to webpages or sub webpages) to your ad.
How Do They Work?
Ad extensions are great for accomplishing specific goals for your business and for giving customers more of a reason to click on your ad. If you have multiple locations or storefronts, for example, location extensions are great for encouraging people to visit the closest physical store.
These different types of ad extensions Google offers gives you different types of analytical reporting. The example that Google gives is if you added a call extension to your ad, what you get back for a report are the number of times a customer dialed your number from their phones. Take a look at the Google video below for a quick run-through of all the different ad extensions.
Why Should You Use Them?
With the recent change to their Ad Rank formula back in October, Google made a change to the Google AdWords algorithm that determines where your ad shows up and how much you pay per click.
Search Engine Land recently uncovered through a Google Ad Rank study that the most successful paid search ads (post-keyword tool elimination and AdWord update) are ones that include these ad extensions.
It was reported that The Search Agency found that impressions and clicks improved (up to 5-6%) with these extensions after the Google AdWord changes went into effect. The study went on to suggest that ads with extensions are served more often, especially with location ad extensions. Impressions for ads with location extensions rose 50%, clicks jumped 95%, and click through rate rose 40%. At the same time, cost-per-click decreased by 32%.
Extensions are free to use and Google highly encourages them because they make ads more relevant and useful to the user (which is always a good thing with Google).
What all of this means is:
- Ad extensions, especially location extensions, on your ad improve click through rate (CTR) and overall campaign performance.
- Marketers may see lower cost-per-click (CPC) if extensions and formats are more relevant.
- However, extensions could raise the cost-per-click and rank could fall if competitors are using extensions. If you and a competitor have the same max bids, the one with the ad extension is always favored over the other.
According to Search Engine Watch, small businesses (SMBs) might have to use outsourced help to timely manage and update their AdWord campaigns appropriately to compete with the highly competitive PPC environment.
The placement you receive by Google for your ad is based on Google’s “forecast” of the performance for the ad. How well Google predicts you to do (with factors like relevance, CTRs, extensions, formats in mind) will determine how you actually will do.
SEO and organic search results lose search room as a result of ad extensions that will be pushing results down the page.
JUST REMEMBER: when adding extensions, marketers should consider which types of extensions make sense for their brand. Paid search is editable and requires high level of testing to get it exactly right. We only recommend going for search projects that coincide with your overall marketing strategy and to implement a consistent way to adjust these campaigns to get the most bang for your buck.
About Small Screen Producer
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