Introduction: A Game-Changer in Google Ads

On April 14, 2023, Google made a pivotal change to its advertising framework, which resonated significantly in the marketing community yet went largely unnoticed by many. Hidden within an update to the policy around what Google calls ‘Unfair Advantage,’ the tech giant announced that advertisers could now appear multiple times on the same search results page (SERP), as long as each ad occupies a different location. This shift means that a single advertiser can now capture multiple spots on a SERP, which raises important questions about fairness in advertising auctions.

The Development of Google’s Ad Policy

The previous rule governing Google Ads was straightforward: no more than one ad per advertiser for the same business or product could be displayed on a single results page. This policy was intended to prevent large advertisers from consuming the entire ad space, thus allowing smaller players a fighting chance. However, the recently updated policy signals a departure from this approach, enabling advertisers to present ads in various blocks across the SERP.

Google stated, “[We’re allowing] relevant Search ads from advertisers who showed amongst top ads to also participate in the bottom ads auction.” This tweak seems designed to give users more relevant options, yet in practice, it tilts the playing field towards entities with more considerable advertising budgets.

The Real Impact: Initial Observations

Industry experts are beginning to see the practical implications of this policy change. Platforms such as Adthena reported cases where the same advertiser appears in different positions on a SERP, increasing overall impressions but leading to disproportionately lower click-through rates (CTR). An expanded pool of eligible impressions, while benefiting visibility, could inadvertently lead to fewer clicks per ad, creating a paradox for marketers.

“This policy shift muddles the waters regarding true auction competitiveness and performance efficiency,” noted Emma Sterling, a digital marketing analyst at Marketing Insight. “Advertisers will need to adjust their strategies, as the impressions metric may be misleading.”

Challenges for Small to Medium-Sized Businesses (SMBs)

For SMBs, the ramifications of this update are especially concerning. Large enterprises can leverage this policy to run multiple campaigns targeting different objectives simultaneously. For instance, a national brand could focus on brand awareness with top-of-page ads while capturing last-click conversions with ads displayed lower on the page.

In contrast, local businesses with limited budgets may find themselves edged out entirely. Even with solid Quality Scores, they may struggle to secure ad placements against larger competitors. This dynamic only exacerbates existing inequalities, as the competitive landscape grows increasingly skewed towards those with deeper pockets.

Transparency Concerns: The New Sponsored Label

Alongside the double-serving policy, Google has introduced a new “Sponsored results” label. Instead of individual ad tags, ads will now cluster under a single designation, which could obscure the line between paid and organic search results.

This change could frustrate users who are accustomed to identifying search ads through smaller “Ad” labels. As a result, the clarity Google has strived to uphold in differentiating between paid and organic listings might be compromised.

The Reporting Dilemma: What Advertisers Need to Know

From an analytics perspective, Google Ads continues to provide indicators like impression share for top-of-page visibility. However, the absence of a designated reporting view for ads displayed in both top and bottom ad positions creates a void in performance analysis.

While Google asserts that overall counting methods for impressions, clicks, and conversions remain unchanged, the way these metrics interact may present challenges for advertisers striving for holistic insights. Segmentation by “Top vs. Other” can only provide a rough estimate of how ads are performing across these different placements.

Who Stands to Gain from This Policy Change?

The main beneficiaries of this new rule are Google itself and larger advertisers. By permitting multiple ads per advertiser, Google effectively enhances its ADS inventory without increasing the number of search queries. More ad placements translate into heightened overall paid clicks per search, significantly benefiting the platform’s revenue stream.

For big advertisers, this restructuring allows for the capture of more SERP space while employing a broader array of messaging strategies to engage users. They can amplify their brand’s visibility, even if one of their advertisements does not perform as well as expected. Conversely, smaller advertisers are left grappling with fiercer competition, rising costs per click (CPC), and dwindling visibility opportunities.

Strategies for SMBs in a Changing Landscape

Despite the drawbacks brought on by Google’s recent policy update, there are actionable steps SMBs can take to navigate this shifting terrain:

1. Audit Query Overlap

Double-serving can lead to self-competition. Thoroughly review search term reports and identify queries triggered by multiple campaigns. Determine if ads in different placements are adding value or if one is cannibalizing the other.

2. Intentional Segmentation

Define distinct roles for each campaign within your advertising funnel. By utilizing separate campaigns for different intents, you can prevent overlap and better utilize your budget.

3. Monitor Location Performance

While Google hasn’t introduced new reporting metrics, segmenting by “Top vs. Other” can help you understand performance trends between ads displayed above and below organic listings.

4. Adjust Budgets Strategically

Maintain separated budgets for campaigns that target similar audience segments or queries to avoid elevating bid costs inadvertently.

5. Focus on Efficiency Over Visibility

With the potential for increased impressions but not necessarily improved performance, it’s crucial to prioritize KPIs focused on conversions and lead quality rather than solely impression share or CTR.

6. Educate Clients and Stakeholders

It’s vital to prepare stakeholders for these shifts in metrics. Changes in Top/Absolute-Top Impression Rate may occur, and it’s essential to emphasize that profitability, rather than mere visibility, should remain the ultimate goal.

The Need for Scrutiny

While Google markets this update as enhancing user choice, the implications suggest otherwise. The logic becomes circular: with one advertiser taking up multiple slots, consumer choice may actually diminish. This change reflects a broader trend in Google’s redefining of fairness, moving from equal opportunity in the auction to equal algorithmic treatment.

The Larger Context: Evolution of Google Ads

Double-serving is part of a growing pattern of systemic changes within the Google Ads framework. As automation continues to erode traditional management practices, the effectiveness of ad campaigns is increasingly reliant on algorithmic control rather than proactive strategy. Each new policy grope appears rational in isolation but collectively challenges conventional advertising norms.

Conclusion: Navigating the New Normal

This recent shift is more than just a policy adjustment; it’s indicative of evolving challenges advertisers will face as the digital landscape transforms. Moving forward, it’s essential for marketers to remain vigilant, consider the broader implications of their advertising strategies, and continuously ask the critical questions surrounding fairness and transparency in advertising.