Sitelinks Ads Dominating the Space

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Adwords Enhanced campaigns has rolled out a new feature - Sitelinks with descriptions. At first glance it looks pretty great:

Adwords Enhanced Sitelinks with Descriptions

In addition to the the other enhanced sitelink features, advertisers can now plug in specific descriptions with the same character lengths as a stand-alone ad (as opposed to the Feb. 2012 improved extensions). Simply fill out the description lines that look like the ones below:

Sitelinks Descriptions Form

It's a pretty interesting opportunity to occupy the bulk of the top Pay-Per-Click search results through the use of extra copy - but at what cost?

Paying out the Nose
Advertisers were first enraged by Enhanced Campaigns - with Business Insider reporting "that they regard the move as unhelpful at best and a cynical back-door price increase at worst." Adobe recently published an article confirming this accusation. The jist of it is that Cost-Per-Clicks (CPC) are steadily on the rise, costing advertisers 6 percent more than before.

Why the increase?
Now that tablets are essentially being treated the same as desktops, their historically lower CPCs have been raised to the desktop standard. There is also evidence that the Mobile Bid Adjustment, as recommended by Google, is higher than necessary to maintain similar performance on mobile devices when compared to desktops. Take into consideration that advertisers who weren't previously bidding on mobile and tablet devices are now being pushed into the space, and it is little wonder that there is increasing competition.

That said the new sitelinks will probably be attributed to ads in the first (and maybe second) position. So if advertisers aren't in those positions and want this feature, competition will increase, ads in the 3rd position will get bumped over to the side, and CPC's will grow beyond the current 6% hike. It's prime real estate, as far as search advertising space goes, but it could further inflate the market.

I recommend utilizing this feature in campaigns that are already dominating the first position in order to test out its effectiveness. If having the extra copy improves user conversion rates, then it would make sense to slowly roll it out to other campaigns and ad groups.

What do you think of the new sitelinks with descriptions? Let us know by commenting below or tweeting us @BFMweb.

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