Google Ads: Key Updates and What They Mean for 2023
Introduction
In the ever-evolving landscape of digital marketing, staying ahead of the curve is essential, particularly when it comes to Google Ads. This platform has become a cornerstone for businesses seeking to expand their reach and connect with potential customers.
However, the pace of change within Google Ads is relentless, with new updates rolling out regularly. These changes can significantly impact your advertising strategy, making it crucial to understand and adapt to them. This article delves into the most important updates to Google Ads for 2023, providing insights and tips to help you navigate these shifts effectively.
The Top Google Ads Updates You Need to Know for 2023
Google Ads has seen a slew of changes in 2023, each one bringing its own set of challenges and opportunities. From increased costs per lead to the introduction of new ad types, these updates are shaping the way businesses approach their advertising strategies. Let’s explore the most significant changes and how you can adapt to stay competitive.
1. Cost Per Lead Increases Across the Board
One of the most impactful changes in 2023 has been the widespread increase in cost per lead (CPL). According to recent data, 91% of industries have seen a rise in CPL, with the average overall increase standing at 19%. Certain sectors, such as Arts/Entertainment, Travel, and Furniture, have been hit particularly hard, experiencing increases of 134%, 69%, and 54%, respectively.
Why This Matters: The rise in CPL can be attributed to several factors, including inflation-driven price hikes and ads being displayed for queries with low commercial intent. As a result, conversion rates have dropped, leading to higher costs per lead.
How to Adapt: To combat rising CPLs, it’s essential to refine your ad targeting and keyword strategies. Implementing a full-funnel strategy and maintaining a robust list of negative keywords can help you improve your ad performance. Additionally, leveraging automated bidding strategies and regularly reviewing your campaigns can ensure that you’re getting the best return on your ad spend.
2. The End of Expanded Text Ads
Expanded Text Ads (ETAs) have been a staple of Google Ads for years, but in 2023, Google finally phased them out. This change marks the end of an era for many advertisers who have relied on ETAs to craft and optimize their PPC campaigns.
Why This Matters: ETAs allowed for more control over ad copy and testing, enabling advertisers to fine-tune their messages. With their discontinuation, advertisers must now rely on Responsive Search Ads (RSAs), which use machine learning to generate ad variations.
How to Adapt: While RSAs offer the potential for over 40,000 unique ad variations, they also come with challenges, such as the possibility of poor ad combinations. To make the most of RSAs, focus on providing a diverse set of high-quality text assets for Google to mix and match. Regularly monitor your RSA performance and adjust your assets based on what resonates most with your audience.
3. The Transition from Smart Shopping and Local Campaigns to Performance Max
In a significant shift, Google has replaced Smart Shopping and Local Campaigns with Performance Max campaigns. This new campaign type offers broader reach across Google’s ad inventory, including placements on the Discovery feed, YouTube, and Gmail.
Why This Matters: Performance Max campaigns are fully automated, which can be both a blessing and a curse. While they offer greater reach and potential for improved conversion rates, they also require a larger budget and more data to function effectively.
How to Adapt: To get the most out of Performance Max campaigns, ensure you have a sufficient budget and a well-structured data feed. Regularly review campaign performance and make adjustments as needed to optimize for your specific goals. If you’re hesitant to switch to Performance Max, consider running it alongside your existing campaigns to compare results.
4. Phasing Out of Similar Audiences
Another significant update is the phasing out of Similar Audiences in 2023. Introduced nearly a decade ago, Similar Audiences has been a key tool for expanding reach by targeting users similar to your existing customers.
Why This Matters: The removal of Similar Audiences is part of Google’s broader effort to enhance user privacy and transition to more durable audience solutions. This change will affect advertisers who rely on these audiences to scale their campaigns.
How to Adapt: As Similar Audiences are phased out, focus on building first-party data, such as Customer Match lists, to create new audience segments. Google’s Smart Bidding strategies and optimized targeting features can also help you continue to reach relevant audiences without relying on Similar Audiences.
5. New Competitor Advertising Insights on the SERP
In a move toward greater transparency, Google has introduced new tools that allow users to see more detailed information about advertisers on the Search Engine Results Page (SERP). One of the most notable features is the ability to view an advertiser’s past ads through their Advertiser Page.
Why This Matters: This new level of transparency offers valuable insights for advertisers looking to monitor competitor activity. By understanding what your competitors are doing, you can adjust your strategy to stay ahead.
How to Adapt: Make use of the Advertiser Pages feature to regularly review your competitors’ and strategies. Look for patterns in their messaging, ad formats, and targeting, and use this information to refine your campaigns. Additionally, consider how you can differentiate your brand to stand out on the SERP.
6. Introduction of Vehicle Listing Ads for the Automotive Industry
For the automotive industry, Google has introduced Vehicle Listing Ads, a new ad format that highlights cars available at local dealerships. This format displays key information such as price, condition, and location directly on the SERP.
Why This Matters: Vehicle Listing Ads provide a powerful tool for car dealerships to reach potential buyers at the top of the SERP, increasing visibility and driving more traffic to their listings.
How to Adapt: If you’re in the automotive industry, make sure to take advantage of Vehicle Listing Ads by maintaining an up-to-date inventory feed in Google Merchant Center. This will ensure your ads are accurate and reach the right audience. Regularly monitor your ad performance and adjust your inventory as needed to maximize conversions.
7. New Business Name and Logo Ad Assets
In 2023, Google introduced new ad assets that allow verified advertisers to display their business name and logo alongside their ads. This update is designed to help businesses stand out on the SERP and reduce the risk of impersonation and fraud.
Why This Matters: These new assets add a visual element to your ads, making them more eye-catching and helping to build brand recognition. They also provide a layer of protection against competitors who might try to capitalize on your brand name.
How to Adapt: To use these new ad assets, complete Google’s verification process to ensure your business is eligible. Once verified, consider how you can leverage your business name and logo to enhance your ad performance. For example, use consistent branding across all your ad assets to reinforce your brand identity.
8. New Voiceover Features for Video Ads
As video content continues to dominate the digital landscape, Google has introduced new features that allow advertisers to add voice-overs to their YouTube video ads without additional editing. This update is part of Google’s efforts to make video ad creation more accessible and effective.
Why This Matters: Voiceovers can significantly enhance the impact of your video ads, making them more engaging and persuasive. This feature is particularly valuable for advertisers who may not have the resources to produce fully edited video content.
How to Adapt: If you’re running video ads on YouTube, consider adding a voiceover to enhance your message. Google’s new tools make it easy to experiment with different voiceover options, allowing you to find the right tone and style for your brand. Regularly test and optimize your video ads to ensure they resonate with your audience.
9. The Rise of Audio Ads on YouTube and Smart Speakers
With the growing popularity of audio content, Google has expanded its ad offerings to include audio ads on YouTube and smart speakers. These ads provide a new way for businesses to reach audiences who prefer listening to content rather than watching it.
Why This Matters: Audio ads open up new opportunities for brands to connect with consumers in a more personal and immersive way. They also allow advertisers to tap into the growing audience of podcast listeners and smart speaker users.
How to Adapt: If your target audience is likely to engage with audio content, consider incorporating audio ads into your Google Ads strategy. Focus on creating compelling audio scripts that capture attention and convey your message. As with all ad formats, test different variations to find what works best for your brand.
10. Broad Match Beta Test and Its Uncertain Future
Finally, one of the more experimental updates in 2023 is Google’s broad match beta test. Broad matches have always been a double-edged sword, offering greater reach but often at the cost of relevance. The new beta test aims to refine broad match by improving its ability to match ads with relevant queries.
Why This Matters: While a broad match can help you reach a wider audience, it can also lead to wasted ad spending if your ads are shown for irrelevant searches. The beta test could potentially improve the effectiveness of the broad match, but its success is still uncertain.
How to Adapt: If you’re participating in the broad match beta test, closely monitor your ad performance and be prepared to make adjustments as needed. Use negative keywords to filter out irrelevant searches and consider running broad matches alongside other match types to compare results.
Conclusion
The updates to Google Ads in 2023 reflect the platform’s ongoing evolution and its response to changing market dynamics. From the rise in cost per lead to the introduction of new ad formats, these changes present both challenges and opportunities for advertisers.
By staying informed and adapting your strategy to these updates, you can continue to achieve success with your Google Ads campaigns. Remember, the key to thriving in this ever-changing landscape is to remain agile, continuously test new approaches, and always be ready to pivot when necessary.
