With Google constantly changing their algorithm, it’s no surprise that there is yet another major adjustment that we need be aware of. Starting immediately, Google will discontinue the sidebar ads within search results, and only 1-4 advertisements will appear above the fold.

Toronto Banks   Google Search

Google is constantly striving to improve their platform and enhance the way consumers can find accurate, high-quality content, which has likely stemmed this recent change.

Why would Google make this change?

This is a question that many people will have about the recent changes Google has made to their AdWords. They briefly tested out this change back in December, and evidently, liked the outcome. The potential benefits for Google from this change could be:

  • Drive up Cost-Per-Click (CPC) prices, which increases their revenue.
  • Decrease the amount of ads on pages, only showcasing the best advertisers.

Showing Only Google’s Listing Ad

Previously, Google search results provided advertisement spots within the right sidebar. However with this recent change, they will now only be showing three top ads from AdWords. The elimination of their sidebar ads will only happen on desktop search results, but across all languages.

A Google spokesperson said, “We’ve been testing this layout for a long time, so some people might see it on a very small number of commercial queries. We’ll continue to make tweaks, but this is designed for highly commercial queries where the layout is able to provide more relevant results for people searching and better performance for advertisers.

How will this negatively impact advertisers?

If you’ve invested and benefited from purchasing Google ads in the past, or were thinking of doing so in the future, these changes could directly impact you in a variety of ways.

  • The price for Cost-Per-Click advertisements could potentially increase (using basic economics – less real estate [ads] more buyers [advertisers] drives up the price).
  • It will force advertisers to ensure their ads are up to Google standards, in hopes of being shown in one of the four positions at the top of the page.
  • Lack of opportunity to appear as one of the fourth Google advertisements.

How will this positively impact advertisers?

Any change can be hard to accept. Although it may seem like these Google changes only benefit Google and the already well-established and successful businesses, there is some good news for all companies.

  • With less ads being shown, it will likely increase traffic opportunities.
  • Provides motivation to strive forward in order to effectively compete with your direct competitors.
  • Your traffic will not be affected by this change when search results are viewed via tablet, smartphone etc.