Google Earnings Report Shows New AdWords Ad Format Increased Click Through Rates

Jul 18, 2014 • 8:25 am | comments (19) by twitter Google+ | Filed Under Google News & Finances
 

Google announced their Q2 earnings last night and beat estimates, although some are worried about mobile ads being an issue and Nikesh Arora leaving the company. But the earnings report showed a couple things advertisers here would be interested in, at least two things:

(1) The new ad format used for AdWords ads in the search results, that blend in better, had a nice increase in click through rates and that lead to more money for Google despite lower CPC prices.

Here are before and after on the ad formats:

Old ad format:

Google AdWords Ad Format

New ad format:

Google AdWords Yellow Ad Format

(2) Google broke down where the paid clicks came from in more detail for the first time:

  • Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 25% over the second quarter of 2013 and increased approximately 2% over the first quarter of 2014.
  • Sites paid clicks, which include clicks related to ads we serve on Google owned and operated properties across different geographies and form factors including search, YouTube engagement ads like TrueView, and other owned and operated properties like Maps and Finance, increased approximately 33% over the second quarter of 2013 and increased approximately 6% over the first quarter of 2014.
  • Network paid clicks, which include clicks related to ads served on non-Google properties participating in our AdSense for Search, AdSense for Content, and AdMob businesses, increased approximately 9% over the second quarter of 2013 and decreased approximately 5% over the first quarter of 2014.

I don't believe Google broke it out like that before.

Cost-Per-Click - Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 6% over the second quarter of 2013 and remained constant from the first quarter of 2014. Cost-per-click for Google sites decreased approximately 7% over the second quarter of 2013 and decreased approximately 2% over the first quarter of 2014. Network cost-per-click decreased approximately 13% over the second quarter of 2013 and increased approximately 3% over the first quarter of 2014.

You can compare it to the Q1 report.

Forum discussion at WebmasterWorld.

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