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Did Moving AdWords Closer To Free Increase Google's Revenue? 
By: Matthew Elshaw 2009-10-27 In August, we reported on Google moving AdWords listings closer to the natural (free) results. At the time, we speculated this may have been a sneaky way to increase Googles revenue by encouraging more people to click on AdWords listings. Did this change help to increase Googles revenue? The short answer is Yes. At the recent Google earnings report, a spokesperson confirmed that the change did result in an increase on the click-through rate for ads on the right hand side. "We had a very good quarter from Ad Qualitys perspective. I can tell you the significant things that we did. The biggest things, probably in order, or close to order, were the UI tweaks that we did for results pages. We changed the maximum width, decreasing the spacing between the search results and the right hand side ads on wide screen. With that it increased the click-through rate on the right hand side ads and I think we did that some time around the second week in August." When the changes were first announced in early August, some advertisers had reported a Click-through rate (CTR) increase of around 10% - so the earnings announcement was somewhat expected. In case you missed the initial post, heres an image that pretty much sums up the changes (thanks techcrunch): 
Did you notice an immediate CTR increase following the change? Let us know in the blog comments below. Comments Tag: AdWords Add to  Del.icio.us |  Digg |  Reddit |  Furl Have a bookmark! -  About the Author: Matt is a marketing professional at ineedhits.com, an international search marketing firm. Matt's passion for online marketing began at university and has proved invaluable in steering product development and marketing initiatives at the company. Matt is a regular contributor to the ineedhits search marketing blog. |
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