8 real data backed predictions for ppc in 2018
TRANSCRIPT
LIVE WEBINAR
© Copyright 2018 WordStream, Inc. All rights reserved.
8 Real Data Backed Predictions for PPC in 2018
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Logistics• Webinar will be recorded – check
your inbox for materials
• Submit your questions for Q&A
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Mark IrvineSenior Data Scientist
• Senior Data Scientist at
WordStream
• 5 Years in Paid Search
Experience
•
Voted the 5th Most
Influential PPC Expert of
2017
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Predications for the New Year
• It’s always tempting to create resolutions or predictions of what
we’d hope happens in the new year.
But time tells us that we shouldn’t expect these to happen unless we do something about it!
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Predications for the New Year
• Past actions are the best indicator of future behaviors.
• In order to understand what we should expect in 2018 – we have to understand what trends evolved in 2017 and how we’ve seen players react to similar trends in the past.
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#1
Facebook Expands Beyond your Social Feed
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Facebook’s Unreal Growth
Facebook Ads has grown faster than any other platform.
Period Number of Active Advertisers
Quarterly Ad Revenue (USD)
March 2016 3 million $5,201,000,000
Period Number of Active Advertisers
Quarterly Ad Revenue (USD)
March 2016 3 million $5.2 Billion
September 2017 7 million $10.1 Billion
In 18 months, Facebook has more than DOUBLED its advertising network – and it’s posed to keep growing!
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Facebook’s Reach Will Extend Outside of Feeds
• Facebook ads introduced 2007
• Messenger ads introduced Sept 2017
• Instagram ads introduced 2015
• Instagram Direct Ads coming soon?
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Facebook’s Reach Beyond Social
Facebook has acquired 65! companies since starting in 2005.
• WhatsApp was bought by Facebook in 2014.
It currently has a user base over 1 Billion, making it the most popular messaging application of all time.
• Although currently WhatsApp does not support any kind of advertising, code within the Facebook ad manager suggests WhatsApp ads may be on the horizon if Facebook has its way:
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Facebook’s Reach Beyond Social
Facebook has acquired 65! companies since starting in 2005.
• Oculus VR was bought by Facebook in 2014.
As Oculus now supports over 100 games and apps, expect increased potential for Facebook to leverage this AR and VR technology for advertisers!
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#2Explosion of New Search Ad Formats
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Search is Evolving
• Search ads aren’t going anywhere – but how they answer questions is evolving.
Standard text ads: Introduced in 2000.
Expanded text ads: Replaced standard text ads in 2017.
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Search is Evolving
• Search ads aren’t going anywhere – but how they answer questions is evolving.
Shopping ads: Introduced in 2010.
Shopping Showcase ads: Introduced in 2017.
Buy on Google Ads: Coming soon?
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Search is Evolving
• Search ads aren’t going anywhere – but how they answer questions is evolving.
Call Extensions: Introduced in 2013.
Call Only Ads: Introduced in 2015.
Message Extensions: Introduced in 2016.
Chatbot Extensions: Coming soon?
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Introducing Local Service Ads• Local Service Ads make it easy to
connect consumers to trusted local
professionals.
• Local Service Ads will appear
above Paid Search ads and organic
results.
• An advertiser can show for LSAs,
PPC ads, and Organic listings on
the same SERP.
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Local Service Ads• Local service ads are
eligible to show for relevant searches for you service, such as “Locksmiths near me”, “Locked out”, “Replace home locks”, etc.
• No keywords to manage.
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Local Service Ads• After clicking on an ad,
they will be asked about what service they need and where they need it.
• If the advertiser supports the service and location, they’ll be able to call or message them.
• If they don’t, they be referred to advertisers that do.
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Local Service Ads
Desktop Mobile Google Assistant Devices
Via Voice Search
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#3Voice Search goes
Mainstream
In 2017, 20%of searches occur via Voice Search, rather than a typed query!
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Voice Search goes Mainstream
• On Friday, Google shared that Google Assistant is on more than
400 milliondevices!
Comscore estimates that by 2020, More than 50% of all search will be driven by
voice search
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Preparing for Voice Search
• Spoken Language is different. People turn to voice search for answers to their questions, not matches to their keywords. Think of answering questions around “Where?”, “Who?”, “When?”, and “How?”
• Structured data, like shopping feeds and local inventory ads, will be easiest for Google to incorporate into answers. Be sure your feeds are uploaded and accurate!
• Location Matters! Voice search answers more immediate needs. Make sure your local business information (address, hours, phone number) is accurate in Google My Business.
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#4The Rise of Visual Search
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Pinterest Grew A Monopoly on Visual Search• Pinterest pioneered what visual search could
do when it launched in 2010.
Year Annual Ad Revenue (USD)
2015 $100 Million
Year Annual Ad Revenue (USD)
2015 $100 Million
2016 $300 Million
Year Annual Ad Revenue (USD)
2015 $100 Million
2016 $300 Million
2017 $600 Million
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Search Engines Adopt Visual Search• Both Google &
Bing are experimenting with visual search today.
• Image searches may show ads!
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#5
Search Audiences Kill Search Keywords
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Keywords Aren’t What the Used to Be• In 2015, Google
began automatically matching queries to close variants.
• In 2017, Google began serving ads when Keywords were reordered or had functional words added, removed or changed.
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Keywords Provide Less Control Now• As a result of these changes, exact match keywords show for more
queries, meaning less control and more costs.
8%impressions
10%clicks
11%of costs
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Search is More Than Keywords
Newborn shoes
Semantic search isn’t dead – but keywords don’t buy your products. People do!
• In 2013, Google released Remarketing Ads for Search Ads.• In 2015, Google released Customer Match.• In 2016, Google released Demographic Targeting (Age & Gender) for
Search ads.• In 2017, Google released Similar Audiences for Search Ads.
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Life Event Targeting of Users:*About to or recently got married.* About to or recentlygraduated university.* About to or recently moved.
Consumer Pattern Target of Users:* Who frequently dine out.* Who frequently visit salons.* Who frequently shop at different types of stores* Who frequently attend live events.
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In-Market Audience on Search
Macbook Pro 13 Inch
MichelleIn Market for new laptop
Mark
Macbook Pro 13 Inch
New Laptops
Macbook models
Macbook vs Macbook Pro
Macbook Pro Specs
Macbook Prices
Michelle’s Past Search & Browsing History
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#6
Advertisers lose Control to Automation
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Automation taking Control Away!
In 2017, not only did advertisers lose a lot of control over how their keywords match to searches, but Google also took away controls allowing for how ads rotate as well!
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Google May Even Begin to Automatically Write Ads in your Account!
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Automation taking Control Away!
Google creating ads and deciding where your ads show up is becoming increasingly common:• In 2010, Google introduced Shopping Ads.These ads are created from and trigger based on the content of your merchant feed.
• In 2011, Google introduced Dynamic Search ads.These ads are created from and trigger based on the content of your landing pages.
• In 2017, Google introduced Smart Display CampaignsThese ads are automatically targeted and created off of set assets.
• Google’s newest Local Service Ads don’t have keyword targeting or ad creation settings!
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#7Unchecked Brand Problems
Grow
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• The Google Display Network is the largest display network in the world, reaching 91% of the US Internet Population daily across 3+ Million websites & apps!
• YouTube is the largest video sharing network, hosting over 1 Trillion videos – with 300 hours of video uploaded every minute
• Facebook’s Audience Network is growing quickly too!
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Not All Content is a good place to be Featured
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Not All Content is a good place to be Featured
In an ever-expanding and free internet, there has been a growth in sites filled with fake information, polarizing politics, death, tragedy, and at times malicious and hateful content. In 2017, many brands discovered their ads were serving on these sites and at times had to pull their advertising.Although Google & Facebook are looking to safeguard this content, it will likely continue to get worse before it gets better.
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# 8A New Bing?
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The Digital Ad Duopoly
WSJ estimates ALL of Microsoft’s ad revenue to
account for ~4%
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Bing Ads is the Underdog
Bing Ads currently makes up a combined 35.6% of the US Search Market.
Google, 63.1%
Ask.com (Google Partner), 1.3%
AOL (Bing Partner), 0.8%
Bing, 23.0%
Yahoo!, 11.8%
US Desktop Search Market Share
Source: ComScore, June 2017
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Each Network has its own strength
• Google benefits from
targeting users who are
actively searching for your
keywords.
• You have a lot of control
over what keywords your
ad show, but little control
of who sees your ads.
Your Product
• Consequently, search click through rates
& conversion rates are usually very high.
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Each Network has its own strength
• Facebook benefits from the
most sophisticated
audience targeting options
• You have a lot of control
over who sees your ads,
but they are specifically not
looking for your product in
their social feed.
• Consequently, you’ll be able to
inexpensively reach new users who may
not be searching for your product yet
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Google vs. Facebook – Review
Google Facebook
High Intent Searchers on
Sophisticated & Inexpensive
Audience Targeting
Search and Social
together
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Pinterest Grew A Monopoly on Visual Search• Microsoft bought LinkedIn in
2016.
• LinkedIn is one of the 5 largest social networks in the US and allows advertising targeting by demographics as well as user’s professional details such as job title, company size, education, and skills.
• If Microsoft pairs this targeting with Bing, it would be more powerful than Google’s targeting!
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