Making sense of the changing face of Google’s search engine results page: an advertiser’s perspective
| DOI | https://doi.org/10.1108/JICES-06-2017-0035 |
| Date | 12 March 2018 |
| Pages | 90-107 |
| Published date | 12 March 2018 |
| Author | Divya Sharma,Agam Gupta,Arqum Mateen,Sankalp Pratap |
| Subject Matter | Information & knowledge management,Information management & governance,Information & communications technology |
Making sense of the changing face
of Google’s search engine results
page: an advertiser’s perspective
Divya Sharma and Agam Gupta
Indian Institute of Management Rohtak, Rohtak, Haryana, India
Arqum Mateen
Indian Institute of Management Kozhikode, Kozhikode, India, and
Sankalp Pratap
Indian Institute of Management Tiruchirappalli, Tiruchirappalli,
Tamil Nadu, India
Abstract
Purpose –Google commands approximately 70 per cent of search market share worldwide, resulting in
businesses investing heavily in search engine advertising on Google to target potential customers.
Recently, Google changed the way in which content and ads were displayed on the search engine results
page. This reshuffling of content and ads is expected to affect the advertisers who advertise on Google
and/or use it to drive traf fic to their websites.The purpose of this study is to analyze the impact of these
changes on various stakeholders.
Design/methodology/approach –Data have been collected from various sources on the internet
including blogs and discussionforums. Netnography has been used as it allows a detailed evaluationof the
consumers’needs,wants and choices in a virtual space.
Findings –The average cost-per-click for ads on the top positions is expected to increase. Advertisers
whose ads usually occupy the lower positionswould be adversely affected. To counter this, more emphasis
should be placed on ad extensions and on productlisting ads. In addition, organizations would benefit from
increasedefforts on search engine optimization.
Practical implications –A variety of copingstrategies have been developed that canhelp marketers to
successfullynavigate throughthe change, including theuse of ad extensions and theuse of product listing ads.
Originality/value –This practice-focused paper offersguidelines for digital marketers to use sponsored
search more effectivelyas part of their arsenal in light of some important changes recently made by Google.
The potentialof netnography as a research methodologyhas also been expanded by using it in a novel setting
and in drawing up actionableinsights.
Keywords Netnography, Digital marketing, Google ads, Sponsored search advertising
Paper type Research paper
1. Introduction
Increased adoption of mobile and communication technologies along with the proliferation
of online marketplaces has significantly altered the competitive landscape of many
industries. Companies have discovered new ways of reaching out to customers leading to
new opportunities in marketing (Chong et al.,2010). Prominent factors affecting such
developments and givingrise to the primacy of online mediums for advertisinginclude wide
geographical reach (Laudon and Laudon, 2002), usage convenience and interactive
communication ability (Chaffey, 2004). One of the ways in which the internet has enabled
JICES
16,1
90
Received14 June 2017
Revised19 August 2017
Accepted23 October 2017
Journalof Information,
Communicationand Ethics in
Society
Vol.16 No. 1, 2018
pp. 90-107
© Emerald Publishing Limited
1477-996X
DOI 10.1108/JICES-06-2017-0035
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1477-996X.htm
marketers is through searchengine advertising (Edelman et al.,2007). In this study, we have
investigated how changes to the way information is organized and presented on the search
engine results page (SERP)may affect an advertiser. An SERP is the page that displaysads
and other informationalcontent in the form of links when a user makes a search query to the
search engine.
In early 2016, Google announceda change in the layout of its SERP. This means that the
way in which sponsored searchads appear when a user queries Google has changed. When
a user queries a search engine on the SERP, sponsored search ads aredisplayed as part of
paid listing alongside organic (unpaid) listing. The change has resulted in many digital
advertising agencies, managersand marketers talking, debating and conjecturing about the
possible impacts of the change.
Typically, a firm can advertise in these paid listings by participating, and bidding on
search keywords, in an auction conducted by the search engine each time a user makes a
search query. Ads get displayed in the paid listing on the basis of their match with the
user’s query and the advertisers’bids, and the advertiser pays the search engine only
when a user clicks on their ad. Google commands the lion’s share when it comes to the
internet search market, leading other search engines, such as Baidu and Bing, by a
margin of 54-58 per cent of the total search volume. Owing to the large search trafficon
Google, it has become an important medium for sponsored search advertising[1] (SSA).
The efficacy and the importance of this medium for advertisers have been highlighted by
numerous industry surveys and market intelligence reports. SSA has been ranked as the
most effective acquisition channel for retailers (Lee, 2014). Another survey ranked SSA
second on the quantity of leads generated, fifth on the quality of leads generated and
stated SSA as having an average cost-per-click (CPC) much lower than the traditional
mediums such as radio and TV (MarketingCharts_Staff, 2012). In addition, the survey
indicated that the effectiveness of search engines as a source of business to business
(B2B) lead generation is rising.
Given the salience of SSA not only to the large advertisers but also to the small- and
medium-scale advertisers, it becomes important to understand how the change made by
Google in its ad layout on the SERP,with respect to both organic and paid listings, is likely
to affect the advertisers. Specifically, we have attempted to answer the following research
questions in light of the changesmade to the Google SERP:
RQ1. What would be the impact on thecosts and bidding strategies of advertisers using
the medium?
RQ2. How would the organiclistings on the SERP get affected?
RQ3. How can advertisersrespond to these changes?
Adopting a netnographic research method, we have conducted a thorough analysis of blog
posts, comments on blog posts, Facebook posts and related comments and opinion pieces,
and independent analysis of real data,published on the internet with respect to this change.
Based on this analysis, we have presentedthe possible impacts of the change on advertisers,
identified new possibilities for advertisers in light of the changes and suggestedan agenda
for future research. However, before presenting our analysis, we will delineate the changes
made by Google.
2. Changes in the search engine results page
The change in Google’s ad layout has altered the position,placement and the number of ads
that would appear on the SERP when browsing on desktops. Figure 1 illustrates an SERP
Google’s
search engine
results page
91
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