The Finch Blog — eCommerce Growth at Scale

Google Ads Trends of 2022 | FINCH

Written by Timo Bernsmann | Jan 10, 2023 3:45:00 PM

The latest Google Ad trends you should be paying attention to right now.

Google Ads should be faster, better, and even more automated. Looking to the future, search ads should not only deliver the best possible performance for companies but also be informative and relevant for the searcher. In order to make this balance a reality,

Current Developments in Google Ads

 
Responsive Search Ads (RSA)

Responsive Search Ads (RSA) will be the new standard in every Google Ads account. While the well-known expanded text ads will remain – they can no longer be edited. With the “new” RSAs, only individual building blocks (15 headings and 4 descriptions) can be created. These are then automatically combined (in the variant that works best) and delivered.

The RSAs creates two new challenges for advertisers:

  1. They will need a strategy to effectively redesign their ads
  2. Will this redesign impact their campaign structure?

There is another exciting innovation for displaying ads: Google image extensions, which are intended to supplement text ads with visual elements.

 
 
Data-Driven Attribution in Google Ads

Google announced that the default attribution model for new conversions will Data-driven.

The attribution model uses machine learning to deliver a tailored credit allocation (based on an account’s historical data) for each conversion. In this way, the models can be continuously improved and automatically adapted to changes in the various touchpoint categories. Be aware that you need a certain amount of data to make this model work. Google says some conversion types need at least 300 conversions and 3,000 ad interactions within 30 days. When your data drops below the threshold, you’ll receive an alert and after another 30 days of continued low data your conversion action will be switched to the “Last click” attribution model. So if you are only close to the threshold of data, I would recommend choosing a multi-Touch model on your own and not relay on Google’s Data-driven.

 

 
 
New Google Ad Campaign Type “Performance Max”

Attention digital marketers! Did you know that the “Performance Max” campaign type has been available since November 2021? With Performance Max campaigns, you can deploy ads on multiple channels (YouTube, Display, Search, Discover, Gmail, and Maps) all within one campaign. The goal is to achieve maximum performance across all channels (and of course – more conversions) with as few clicks as possible.

If you haven’t already, try testing out this campaign type by allocating an “experimental budget”. In the future, we predict Performance Max campaigns will continue to play an increasingly important role – and Google agrees. It has already been announced that Performance Max replaced Smart Shopping.

Performance Max will show as a campaign type selection if your advertising objective is “Sales”, “Leads”, or “Local store visits and promotions”.
Focus on Broad and Phrase Match

Last but not least, Google has also made a change to its Match Types. Starting in February 2021, Google began phasing out Broad Match Modifier (BMM) keywords. The well-known phrase match was also renewed to intercept some of the old broad match modifier keywords. The future focus will therefore be on broad and phrase match. But more on that coming up.

4 Steps to Google Ads Success

 
1. Define goals

First, think about the role Google Ads channels play in your business goals and allocate budget according to priority and impact. Next, you should break down your goals into individual channels and define what campaign success looks like according to relevant KPIs. It helps to think of the customer journey as a funnel, in which each step has its own goals – from acquiring new customers in the upper funnel to selling in the lower funnel. Your campaign set up in Google Ads should be based on this predefined funnel, while the assigned goals help select the best bidding strategy.

2. Leverage Google Automations

There have never been more automation options available in Google Ads (and it’s making advertisers’ lives considerably easier). What automation options are available?

  • Smart Bidding Options: These are automated bidding strategies that use machine learning to optimize bids for conversions or conversion value. Google uses all the data that is available to set the ideal bid – depending on the search query entered, device, location, time of day, and remarketing lists.
  • Simplified Structure Through DSA and Broad Match: All relevant search queries can still be filled with fewer keywords.
  • Safety net through Smart Bidding: It is ensured that your budget is not burned, but that you still meet your ROAS targets.

The advantages of Google automation:

  • Easier management of your accounts by reducing complexity
  • Less manual work leads to greater team productivity
  • Increased data collection and “faster” algorithm learning
  • Better budgeting options

With these automation features available, it makes perfect sense to consolidate campaigns and work more strategically. I recommend building a campaign structure that reflects your various business goals. Another approach could be to build campaigns according to the top or lower funnel.

3. Develop RSA strategy

User search trends and activity is always changing. In fact, around 15% of daily searches are those that have never existed before. It is, therefore, all the more important to draw the attention of users through relevant and useful ads. RSA helps to deliver those relevant and useful ads by offering more flexibility with automated headline testing that increases relevance and helps your ad to be shown to your potential customers more frequently.

Example: How you can consolidate campaigns


4. Broad Match is Back

The accuracy of Phrase Match has been combined with the reach of Broad Match Modifier. The new phrase match is now broader than the “old” phrase match and slightly more restrictive than the deprecated Broad Match modifier. According to Google, this makes it easier to address the right users. The following match types remain – Exact Match for precision, Broad Match for more reach, and Phrase Match for a balance of both.

The Broad Match is making a comeback! With the introduction of Broad Match Modifier (BMM), “Broad Match” took a hit in popularity as it seemed to provide unpredictable results and inconsistent ad delivery to users.
The improved Broad Match now analyzes additional signals (which are not taken into account by other match types) to provide more relevant searches. For example, landing pages, keywords in your ad group, and more were added as additional signals.

Combined with smart bidding, these broad match signals can now help to open up new opportunities and create the highest possible relevance of your own ads for users. Broad Match also covers the 10% of wrong or misspelled search queries with new phrases and correction options.

Why You Shouldn’t Ignore Google Ads Trends

The above four steps will help reduce the manual work of your team and allow advertisers to become more strategic with less “busywork”. As you’re developing your overall strategy, it’s important to keep your goals in mind and group your ads in a thematic and meaningful way.

With the right campaign structure and strategy in place, the algorithm can more quickly understand which keywords work best and which display options. In general, you’ll be looking at better data and greater performance!

Don’t forget! A machine is only as powerful as the data we feed it with. Correct measurement of success and accurate reporting are essential in order to draw the right conclusions and make essential data-based decisions.

Tools to Support Google Ads

Search Engine Advertising (SEA) software supports the paid advertising of certain keywords and keyword combinations in search engines like Google, Bing, or Yahoo!. These ads allow your own website to appear under the search results marked with “Advertisements” or “Ads” when browsing for the corresponding keywords. We’d like to introduce one SEA software solution, Finch.

Finch is the first eCommerce Growth Platform that combines software and expert knowledge and is tailored to the needs of eCommerce companies.

For 12 years, Finch has been helping brands and manufacturers grow on key digital channels (including Google Ads). Working with countless customers around the world, we know what’s important: clearly defined goals, a well-founded growth plan, comparable data, meaningful reports, control over our own processes, transparent and efficient workflows, expert knowledge across all relevant channels – and all integrated all-in-one platform.

The advantages of Finch:
  • At the heart of the Finch platform is a customized, detailed 12-month growth plan
  • All-in-One Platform that organizes goals, next steps, timeline, daily tasks, and results at a glance
  • Integrated task management for efficient campaign handling
  • Insights Reporting with a clear dashboard, comparable data from different channels, and customizable reports
  • Strategic advice and support from experts across channels or specific to them
  • Full control and transparency for the advertiser

Conclusion: Long Term Success with Google Ads

Google is trending toward a simpler setup, increased efficiency, robust automation, and actionable platform insights. A well-founded strategy for Google Ads is still a crucial part of the process and greater expertise may be needed as more targeting and data options continue to be added to the platform.