Google: Caught in the Act of Balancing

And yet another post on the recent changes to the Google SERP. This time, Chris Knoch sent me an interesting screen shot of a Google beta test that eliminated the side sponsored ads. I pondered the implications to the user experience. Also published Nov 18 on MediaPost.

In last week’s column, I talked about the number of changes I was seeing on the Google results page, and, in particular, how they might maintain the delicate balance between driving revenue from the page and maintaining user trust. No sooner did the digital ink dry on the column than I received an email from an old friend, Chris Knoch, formerly of Omniture and now VP of Marketing at Ready Financial. In his email, Chris included a screen shot of a rather interesting beta that Google is running:



It’s hard to say, given Google’s love for beta testing, how widely spread this test is and how indicative it might be of future ad presentations, but there are a number of fascinating implications to consider here. For today’s column, I’d like to focus on one of them: the elimination of the side ads.

Side ads generate a small percentage of the sponsored clicks from the page. For most results, the top two or 3 ads generate over 80% of the paid clicks on the page, with the 7 or 8 running down the right rail splitting the remaining 20%. That’s a lot of real estate to devote to underperforming ads. Will Google’s expandable alternative, with the user choosing to see 8 more ads, generate more clicks? I suspect so. Here’s why.

We judge the relevance and quality of blocks of information as a group, rather than consider them individually. The first ad in any block will dictate the performance of the block as a whole. If it’s a high quality ad, it’s saying to the user, “I’m relevant. Chances are the rest of the ads in this group could be relevant too. At least, you should spend a few seconds deciding for yourself!” But if it’s a low quality ad, it sends the message, “Don’t waste your time here. I’m not relevant, and everything below me is even worse.”

For side ads, this means that the top ad determines the depth of scanning engagement with the entire block. The position and visual treatment of the ads reinforces that it’s a “sidebar”, of secondary importance to the main purpose of the page. We won’t invest a lot of time scanning here, and if the first ad sucks, the rest of the block is doomed.

Google’s treatment provides a compelling alternative to the user. It restricts the number of ads shown to only the highest quality ones (you’ll notice that this presentation appeared on a broad query, where there would be sufficient inventory to provide high quality ads). The ads should be just as relevant to the intent of the user as the organic results, and given the query, probably more relevant. The user should be hooked. The presentation of two ads (I’d bet big money on the fact that Google will be testing both 2 and 3 ad presentations above the “more ads” button) gives a ready-made consideration set for the user. We’ve known for some time now that users “chunk off” a result set in groups of 2 or 3 results (maximum 4) and consider them as a group. There are natural visual barriers (the related search suggestions) that reinforce the visual presentation of the top ads as a group. What this means is that the user will judge relevancy, and if the first two (or three) ads pass the test, there’s a high likelihood that the set will be expanded.

When the set is expanded, the entire visual balance of the search results set is changed to the benefit of the advertisers, but the user initiates it. The user has given the ads an implicit vote of confidence, and by doing so, all organic results are pushed down out of visual scanning range. My guess is that this will result in much higher engagement with the ads, virtually eliminating the side bar blindness that has typically plagued right rail ads.

It’s a perfect example of maintaining user trust while driving more revenue. Based on this beta, I’d have to say, “Well done, Google!”

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Print | posted @ Thursday, November 18, 2010 9:49 AM

Comments on this entry:

Gravatar # re: Google: Caught in the Act of Balancing
by Pianoles Online at 11/22/2010 12:05 PM

Hi, i read an article about this phenomenon today for my Msc of Marketing. I think Google uses the same logic as retailers use for shelf space allocation and positioning. People tend to use the heuristic that higher or the top is the best position to be in. This is grounded in everything we do. So i think that Google is on the right track here! I am curious to know when they roll out this beta in the Netherlands, because that's where i live.
Gravatar # re: Google: Caught in the Act of Balancing
by Ken at 11/25/2010 10:55 PM

Google loves testing, they also just launched picture preview, seeing the a screenshot of the website will help you deciding on which one to click. Webmaster better make good looking website now.

Gravatar # re: Google: Caught in the Act of Balancing
by duncan at 12/3/2010 7:16 AM

hi there,
I dont think the sidebar would make a difference to me whether its there or not.I like the issues you are raising and think they all have valid points.
great article
Gravatar # re: Google: Caught in the Act of Balancing
by Kassie at 12/11/2010 5:51 PM

Interesting times ahead. Clear that over the past 6 to 12 months they are keen to get the ads more prominent. Shame the organic results are pushed further down though!
Gravatar # re: Google: Caught in the Act of Balancing
by Jim at 12/14/2010 5:52 PM


I really enjoyed reading this post, I was just wondering do you trade featured blog posts. Thanks for sharing your Blog with others. You really share valuable information
Gravatar # re: Google: Caught in the Act of Balancing
by Nick A at 12/15/2010 6:14 PM

It's refreshing to read a positive article about Google. All to often, people will only focus on their issues with their Adwords accounts. I had no idea that the side bar ads only accounted for about 20% of revenue. It's no wonder that they are looking to change things up based on that percentage. It will be interesting to see how things change in the coming years and if they will be able to stick to their "don't be evil" motto.
Gravatar # re: Google: Caught in the Act of Balancing
by Jack at 12/21/2010 6:24 AM

What I found disturbing is that Google has yet to make a clear statement on how Google Instant will affect PPC. So until then, I will most likely not use adwords. I have seen twitter and news factor into their latest beta testing though. This could be interesting. Thanks for sharing .
Gravatar # re: Google: Caught in the Act of Balancing
by Sarah Harris at 12/22/2010 11:18 AM

I too thought this beta testing was a good thing. The side ads to me were always poor and I never clicked them. I think is the much better way to go, but it looks as though Google hasn't done completely away with them. Not sure if that's good or bad thing, but time will tell.
Gravatar # re: Google: Caught in the Act of Balancing
by Percy at 12/22/2010 12:24 PM

Beta testing. Unlike Alpha testing, people outside of the company are included to perform the testing. As the aim is to perform a sanity check before the products release, there may be defects found during this stage, so the distribution of the software is limited to a selection of users outside of the company.
Gravatar # re: Google: Caught in the Act of Balancing
by DeWayne at 12/24/2010 3:34 PM

Google has really stepped up the game with relevant searching by adding the instant drop down of popular keyword phrases. They never cease to amaze me, just too bad I did not think of it :)

Excellent point about the Google side ads.
Gravatar # re: Google: Caught in the Act of Balancing
by Deb Dahlberg Rowland at 12/30/2010 6:29 AM

I am facinated by google and the web and your blog on the beta testing has just increased my interest and helped me understand a little about the beta testing. Will be checking in more frequently.
Gravatar # re: Google: Caught in the Act of Balancing
by Leandro at 12/30/2010 11:19 AM

Thank you very much for the info, I have been very helpful for my work. Congratulations on the quality of your website and a warm greeting from Chile.
Gravatar # re: Google: Caught in the Act of Balancing
by kim at 1/7/2011 7:57 PM

I can't remember where I read this, so I'm not sure of the validity of this study, but I read an article summarizing a study which showed that because of all the ads in the sidebar and top, we have become "ad blind", and don't even look at the ads anymore.

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