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+ Published by: Matt Wright | 24th May 2016

Google Performance Summit: Key Updates to Mobile Bidding

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Executive Summary

Prior to the livestream at the 2016 Google Performance Summit, Google walked iProspect through

their latest updates to AdWords with the clear aim of providing “ad innovations to drive business

growth in a mobile first world”. We were given a sneak preview the week before, so have been

able to get our thoughts to our clients as soon as Google made the information public. Most of the

changes discussed will be gradually rolled out in the 2nd half of the year, though you may see

Google testing elements prior to this.

The key changes discussed were:

Device Bid Adjustments – separate bid modifiers from -100% to +900% for mobile,

desktop and now tablet too. This is possibly the most significant change here so will be

discussed in more detail below.

Expanded Text Ads – a new ad format with a more prominent headline that gives 50%

more space for text.

Responsive Display Ads – standard text Google Display Network ads will now include an

option to add an image; the whole ad will automatically reformat to provide the best

experience for the device they are viewed on.

Ads in Maps – ads will be shown on local search and in Google Maps, potentially with the

addition of branding elements such as promoted pins.

Online-to-offline Measurement – accuracy for Google’s footfall measurement will be

upgraded using Bluetooth Beacons.

Cross-Exchange Buying on GDN – inventory from 30 more networks will be added to

Google’s Display Network.

Similar Audiences in Search – advertisers will be able to target audiences that look like

their existing customers using RLSAs and eventually Customer Match, much in the same

manner as Facebook allows now.

Demographics in Search - better reporting and targeting capabilities for attributes such

as age and gender. This has been in Beta for a long time already.

AdWords Next – the modernised, responsive and advertiser-centric upgrade of the

AdWords interface.

Google Analytics 360 Suite – bringing together 6 analytics products into one enterprise

solutions suite.

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Which Changes Are The Most Interesting?

We will be working closely with Google to Beta test as many of these new releases as possible,

with the results used to shape our best practices for our clients. Whilst we welcome all of these

new releases from Google and are excited by the opportunities that they will bring, it is the

changes made to Device Bid Adjustments that are the most interesting to us.

This change gives greater freedom in the management of device level bid modifiers, increasing the

range from -100% to +300% to the greater -100% to +900% and allowing a modifier for tablet;

effectively creating 3 device targeting options rather than 2. It also allows advertisers to set the

base level bid using the device of their choice, rather than having to set mobile as a modifier of

desktop/tablet. Advertisers will be able to have mobile only campaigns for the first time since

Enhanced Campaigns were rolled out, rather than having to run with a low desktop/tablet bid

with a high mobile modifier; all of this helping contribute to ‘mobile first’ approach.

Why Are Google Doing This?

Way back in 2013, Google released Enhanced Campaigns; effectively re-writing the rules for

management of device level paid search advertising. Prior to this, it was widely considered best

practice to have separate campaigns for each device; Enhanced Campaigns grouped all devices

into the same campaign with bid modifiers for desktop/tablet as one option and mobile for the

other.

iProspect were part of a select group

of agencies who helped Alpha test this

new release for Google and helped

shape the product, but one of our key

observations was that tablets

performed very differently to desktop,

so there should have been a modifier

allowed for each device separately. By

grouping desktop and tablet together, Google were looking to future-proof AdWords as they

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expected tablet and desktop performance levels to become more-or-less the same. However, this

has not been the case as can be seen in the difference between 2016 desktop and tablet conversion

rates for a selection of UK clients in the table above.

What Could The Impact Be?

The greater range of modifiers available for each device, plus the new ability to modify tablet CPCs

is likely to lead to some fluctuation in bid levels. However, as with every release from Google, we

would but expect it to balance out quickly. Overall, this change will be of benefit to our clients;

iProspect welcome these changes as it’s something that we’ve desired for a while now in order to

have greater control of our Paid Search advertising as we have recognised the differences between

tablet and desktop consumer behaviour.

What Might Our Approach Be?

Whilst the changes in theory allow us to go back to separate campaigns for each device type,

Google recommend that advertisers do not do this as there are sufficient options within AdWords

to make this approach defunct and unnecessarily complex. iProspect agrees with this as the

additional control provided for tablet, plus the greater range of bid modifiers for all devices, will

allow us to refine our bidding strategy and maximise return on investment for clients without the

need to split out campaigns by device.

We expect this change to signal the end of separate elements such as preferred ads for mobile

devices; instead there may be a whole new raft of integrated, customisable options which will

allow advertisers to tailor activity according to the audience being targeted; device, behaviour,

demographic etc. This will give AdWords advertisers a much improved toolkit for creating a truly

‘mobile first’ strategy.

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About iProspect

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