With the online marketplace growing ever more competitive, the main recurring question is, how should we respond? Most marketers, even outside the context of pay-per-click (PPC), know that you need to adapt to changes – much like Google’s latest update within the Display Network.
Responsive Display Ads are a fairly new feature within the GDN (Google Display Network), so we caught up with our Paid Search expert, Lauren Kelley, to get to the bottom of what has changed, what the new feature is replacing and more importantly, whether or not the new update has yielded results!
Responsive Ads are really simple to set up within Google Ads, you can create them using a combination of the features below:
After creating one ad, this then adjusts automatically to the size available in the GDN as an image, text or native ad.
Responsive Ads are set to replace Dynamic Ads – this ad type currently uses Merchant Center feed data to fill-in an ad’s template, and almost all are associated with Dynamic Remarketing. Dynamic Remarketing allows you to show ads tailored to your website visitors, by presenting them with products they have already viewed and subsequently, takes you one step closer to a conversion.
You can no longer create Dynamic Ads, so if you want to set up something similar, your go-to ads will be Responsive Ads with Dynamic Ads opted-in. Potential customers will then see a product tailored to what they have previously viewed on your website – hence copying the function of Dynamic Ads.
The key differences between Dynamic Ads and Responsive Ads on the Display Network are:
With the previous Dynamic Ads, you still had to create various sizes and formats to get full exposure on Google’s Display Network. With the new ad type, you have slightly less control over how your ads might appear with Responsive Display Advertising.
As PPC’ers we all love a bit of data to back things up. We’ve had a look into some accounts with tried and tested Dynamic and Static Ads vs. the new and improved Responsive Ads (which ultimately combine the two) and here are the highly-anticipated results…
Comparing YoY performance (October 17 – October 18)
Footwear Client 1:
We can see that the Cost Per Click (CPC) is lower for Responsive Ads, Click-Through Rate (CTR) is higher and orders are up by 52% in comparison to last year’s Dynamic and Static Ads.
Apparel Client 2:
CPC’s are higher across the board than they were last year, but remain lower for Responsive compared to Dynamic Ads. CTR is also higher for Responsive Ads, while orders have remained the same across campaign types.
Footwear Client 3:
This client was solely running Static Banners last year. CPC’s are now lower and CTR is significantly higher for Responsive Ads.
One key takeaway here is that CTR tends to be higher for Responsive Ads, which is potentially due to the higher relevancy promised by Google with the optimal combination of images and headlines. CPC’s are also generally lower, which in our experience, can help achieve a better ROI.
Before you rush off to set-up Responsive Display Ads – here’s some handy advice!
Make A Start With Remarketing.
With Display advertising, there’s a myriad of options to choose, from demographic to topic targeting. Starting with your existing audience is a great place to begin, as on average, users who are retargeted with banner ads are 70% more likely to convert (webascender).
It’s also a great way to make your brand appear bigger than it may be – as your existing customers don’t know that you are targeting only them when they see your ad appear (unless of course, they are reading this blog!).
Select The Dynamic Ads Option For Personalised Ads.
Responsive Display Ads can support Dynamic Remarketing by attaching a feed to your campaign. To implement, simply tick the Dynamic Ads option to “use a data feed for personalised ads” when setting up Responsive Display Ads.
Utilise Your Images And Headlines – And Let Google Do The Work For You!
The main reasoning behind Google’s Display update is to make life easier for marketers – in this case, more targeted messages with minimal effort!
Responsive Display Ads will combine and test your assets (images, descriptions and headlines), and Google will then use machine learning to determine the optimal combination for each ad slot available – based on predictions from your performance history.
To sum up, Google’s latest update is much the same in terms of what can be done within Display Advertising, but different in terms of how you set this up. If you don’t currently advertise on the Display Network, of course, we would recommend you make a start, expand your reach and in cliché PPC terms – optimise based on performance.
For more information on the latest Paid Search updates and what our expert team can do for your business, contact us on 01642 988 416.