How will Google’s new ‘Ad’ label impact marketers?

May 10, 2017

Google began to test a new ‘’Ad’ label this year 2017, and it has been confirmed that this will now be set rolling out globally.

This white label with green text and a green outline will replace the green label that was existing before now.

The immediate response to this is that the new labels are suitable in fairly seamlessly with the rest of the paid post, perhaps creating less of a contrast between them and their organic counterparts.

So why has Google made the change now, what impact will it have, and will users even notice the change?

The official line on this update is that Google wants to streamline the number of colors on its results pages, particularly on mobile devices. A Google spokesperson revealed:

“After experimenting with a new search ad label with a green outline, we’ve decided to roll it out. The new ad label is more legible and continues to make our results page easier to read for our users with a clear indication of our ad labeling.” Additionally, they claimed that “the color change had no bearing on consumers’ ability to distinguish ads from organic listings on the page.”

'Ad' label

So why make the change at all?

To start with, these changes never happen in nothingness. This is just an indication of a wider trend and should be viewed in the context of the removal of right-hand side ads, expanded text ads, and the logical drive towards a ‘mobile-first’ approach.

‘Ad’ label

Adding to the growth of ad blockers, strengthening competition in the search business (using both Facebook and Pinterest upping their efforts), and the constant pressure on Google to grow its revenues, and the reasons for moving to a less noticeable ‘Ad’ label become apparent.

Care should be taking in confirming the means of this information. Google may say it has had no impact on testing, but that seems a convenient line for a company that is close to obsessive in its desire to attract more paid clicks through attention to the minutiae.

Google is well-known – sometimes scorned – for this constant interfering, but it’s working anyway.

Their highly-publicized ‘50 shades of blue’ experiment were seen by some as a step too far, but Marissa Meyer made sure to state that it drove an extra $200m in ad revenue. Even at a company of Google’s size, those figures speaks.

Ad' label

However, it’s worth recalling where we are coming from with these ‘Ad’ labels. People can have short memories – the fact that such frequent adjustments take advantage of – and this latest change makes sense when viewed at a higher level.

Google’s ‘Ad’ labels have moved out from brightly overbearing to their latest disguise iteration in the course of just two years:

The change from yellow to green in mid-2016 was reported to have a positive impact on paid search CTR, and few will doubt that this recent move was led by the same motive.

But is this just a narrow-minded attempt to gain clicks (and the additional revenue) in the short term? Or is there more at play here?

For many in the organic search industry, this will just be another step in the inexorable march towards paid search domination of results pages.

Amongst the assumptions in the mind of Google’s latest update is that users just want to get to the result that answers their query, whether a brand has paid for their click or not. Giving more space to paid placements and a never-ending stream of new products to make these ads more attractive undoubtedly gives prominence to sponsored listings.

But, the counter-argument goes, people prefer organic listings. They know an ad when they see it and will go out of their way to avoid it.

However, one of the reasons this has held sway in the past is that paid search landing pages have at times been of lower quality or lesser relevance to the query than organic listings. Brands are willing to pay their way to the top, while that right has to be earned in SEO. The quality of the search results in each camp reflected this, which takes us to the increasing impact of content marketing and customer experience indicators in SEO. These factors are essential for any successful SEO strategy, and they touch all aspects of a brand’s digital footprint – including paid search.

All the energy that site owners have put into making ‘great content’ to advance their SEO rankings plays straight into the hands of AdWords. If Google can convince brands that the best way to get this new content in front of people is to pay for that right, they will do so. The same good content ends up before customers, so everybody is a winner. Brands still get the traffic (at a higher price), users get the result they want, and Google makes more money.

Someone has to lose, though, and SEO traffic seems most likely to assume this position.

Ad' label

A diminished SEO landscape would be to the detriment of user experience, though, and no monopoly (even one as seemingly immovable as Google) has a divine right to market ownership. Advanced CTR for paid lists will have to go hand-in-glove with an enhanced user know-how if this downside is to be avoided. If the quality of results starts to dip, alternative search engines do exist.

Another argument is that perhaps the role of paid search is starting to change. The AdWords business model is beautifully crafted for a direct response strategy, but it has its limits when it comes to brand marketing. As brand financial plan begins to go into the digital space, it would make a lot of sense to have a less clear ‘Ad’ label if Google wants to encourage advertisers to spend this budget on AdWords.

As at all times, there is much opportunity for speculation, even if the vital thrust behind this move appears to be an expected increase in paid search revenues.

One thing is for sure, though: we will be keeping a very close eye on CTR for both paid and organic listings over the upcoming days and weeks to see how this plays out.

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David Pascal

My name is David Pascal, and I’m a Software Engineer and an SEO Blogger. I have 4+ years of experience working with software firms. I spend most of my time on designing and technologies. I have played with some of the new technologies out there and have had a strong experience in them. More to it, I have a good sense of humor and I enjoy meeting new people.

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