Google drops right hand side ads

Google is known for beta. Gmail was in beta for years before a full fledged launch, Google Hotelfinder is now in beta to test the popularity of Google in the travel search space. Google's philosophy is to be quick to market in a test and learn mode and to fully launch if successful. As such, Google is now testing a new paid search ad placement. Instead of the popular ads that have been appearing on the side of the page, for some search pages, ads will now appear at the bottom. The space on the side will be taken over by maps and local business locations.

What are the implications for advertisers? According to a few experts, they will now have to increase their CPCs in order to be placed at the top of the page. There will be more competition to appear on the top as the bottom placement may yield less efficiency than the side. Therefore, those who traditionally bid enough just to be on the side may now try to bid higher for the top placement, making those placements more expensive.

While revenue might not be the main motivation for this change, some argue that Google may be trying to standardize its mobile & tablet platforms which do not lend itself for a side bar. With this new change, user experience can be consistent. While Google claims that ads at the bottom (below the fold) will yield higher click-throughs than the side bar, that assertion has yet to be tested. It will be interesting to see how Google optimizes between user experience and advertisement effectiveness. Who knows? In the future, perhaps Google will even intersperse paid ads within its SEO placements.

For more information regarding this new ad placement change go here:

http://econsultancy.com/us/blog/8253-google-dropping-right-hand-side-ads