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Andy Brice
Successful Software

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Patrick McKenzie
Bingo Card Creator

Adwords Enhanced Campaign

Hi everybody,

did you notice the next change called "Enhanced campaigns" in Adwords ?

Here's what I understood. Every advertiser could previously target ads for "Computers" which was quite relevant if you are trying to  sell a Windows/Mac product.

In the very near future, we will all be obligated to display our ads with enhanced campaigns where you can't disable tablets anymore.

It will be possible to bid -100% for smartphones, but they don't intend to give us that option for tablets. I had a google representative on the phone that explained that to me.

So the advertiser willing to attract computer traffic will have to pay for android and ipad users which will land on a page to download a PC software that they can't run and test immediately.

I think this is likely to be going to be a major problem.  What do you think about it?

Thanks for your feedback about this.
B J Send private email
Monday, February 25, 2013
 
 
>It will be possible to bid -100% for smartphones, but they don't intend to give us that option for tablets.

I thought 'surely he is wrong'. But I just set up an enhanced campaign to check and you are correct. You have to bid the same for tablets as for desktop computers. Even if your software doesn't run on tablets and you can't track download conversions on tablets. Groan.

Currently I don't show my ads on tablets or mobiles. I think it is pretty evil that they are taking away my ability to do that for tablets.

Thanks for the heads up.
Andy Brice Send private email
Monday, February 25, 2013
 
 
That's pretty poor. I'm not sure it'll affect me too much but it's a step in the wrong direction. If anything I want to be able to discriminate *more* (perhaps running special campaigns for Mac users & maybe excluding Linux.)
Jonathan Matthews Send private email
Monday, February 25, 2013
 
 
One question I had no answer to is: if you only have conversions from computers and never from tablets, will the tablet bids be penalized by the conversion optimizer?

I surely hope so!! otherwise it is evil
B J Send private email
Monday, February 25, 2013
 
 
>if you only have conversions from computers and never from tablets, will the tablet bids be penalized by the conversion optimizer?

I don't know. But that is something the conversion optimizer should easily be able to handle.

>I surely hope so!! otherwise it is evil

Indeed.

Its really annoying that they are reducing our ability to distinguish between platforms when many people (e.g. those with Mac only products) really want to increase it.
Andy Brice Send private email
Monday, February 25, 2013
 
 
Since it's early stages I guess we should all be writing to Google about it.
Jonathan Matthews Send private email
Tuesday, February 26, 2013
 
 
I sent this message to Google:

"Hi XXX,

about using enhanced campaigns and conversion optimizer together,
can you answer this difficult question:

if you only have conversions from computers and never from tablets, will
the tablet bids be penalized by the conversion optimizer?

Thanks,"

The answer I had was:

"Good question, nope it will not penalize tablet, conversion optimizer will work at the device level.

Best regards,

XXXX

Account Strategist
Google AdWords-teamet"

So it seems to me that if conversion optimizer will work at device level, then it will recognize various devices and penalize tablets if no conversions... but he says NO.... still not clear... I am now sending a follow up question to clarify.
B J Send private email
Tuesday, February 26, 2013
 
 
Their answer is as clear as mud.
Andy Brice Send private email
Tuesday, February 26, 2013
 
 
I have email Google this:

"I'm not happy that the new 'enhanced' campaigns don't let me set my bids separately on desktop and tablet devices. My software only runs on desktop computers. Currently I don't show ads at all on tablet and mobile devices. It is a real step backwards that I will be forced to show my ads on tablets, with the same bid price as desktop computers.

I have a related question. I am using Google conversion optimizer (CPA). If I am paying per download and users are only able to download my software on desktop devices (not tablets) does that mean conversion optmizer will bid lower for tablets than desktop devices? Will the bid for tablets eventually go to 0 if there are no download conversions measured?"

Lets see what comes back.
Andy Brice Send private email
Tuesday, February 26, 2013
 
 
"The answer I had was:

"Good question, nope it will not penalize tablet, conversion optimizer will work at the device level. "

That didn't come from a rogue customer service agent after ingesting a pastrami sandwich, it came from an in-depth FAQ/talking points memo prepared by the same office that made the decision to alter Adwords.  It will be interesting to see how long it takes Google to step back from that decision, if ever.

You see, we have it backwards, Google believes that advertisers trying to reach only tablet users were being penalized by all the freeloaders targeting only real computers.  Obviously the reason that Adwords revenue from tablets suck is because you can still reach tablet users if you only target their computers.  Ergo, make everyone advertise on tablets.  The fact that tablet users are a low margin, low volume market for advertisers is besides the point.

Which raises an off-topic question.  What if search engine advertising is producing a diminishing rate of return on investment?  If it gets to the point where a significant minority of advertisers abandon Adwords, it will snowball and Google's revenue stream will shrink.  They still have Apps for Government, but a few high profile disasters will kill that business too.
Howard Ness Send private email
Tuesday, February 26, 2013
 
 
>If it gets to the point where a significant minority of advertisers abandon Adwords, it will snowball


If the cost per click to advertise your software on Adwords rises year on year while your margins are falling (due to ever decreasing software prices) - it is going to get ever harder to make a profit on Adwords.

But the more advertisers that abandon Adwords, potentially the more profitable it becomes for those that remain (less competition). So I think the feedback is negative, not positive.
Andy Brice Send private email
Tuesday, February 26, 2013
 
 
" the more advertisers that abandon Adwords, potentially the more profitable it becomes for those that remain"
Which would mean that departed advertisers would return, and the ROI would return to where it was before.  If there were barriers to re-entry, there would be a lag, and a smart advertiser could time its expenditure to get an advantage.  But there are no real barriers to advertising on the Internet, the hard part is capturing your market's attention.

Google's policy change is a response to market fragmentation, not from other search engines, but from other venues where consumers use Google's search service.  If consumers are searching for a specific vendor, advertising accomplishes nothing.  If the search service provider hides results for non-advertisers, people quit using the search service.  The vendor will show up in the consumer's search results (if no one requests search results, they don't exist), whether or not the vendor advertises.  Consumers searching for more than one vendor are less likely to be using a tablet or smartphone at the time.

This is a general problem with online advertising.  Getting exposure in front of the consumers you are trying to reach is not strongly correlated to how much money you spend on online advertising.  If the cost of online advertising is very low, you can get a positive ROI from it, but it will never match the ROI of natural search. 

If it hasn't already, targeted advertising on affiliated webpages will surpass search result advertising.  It's inevitable, but even that type of advertising is weak compared to offline media.  But as consumers spend less time offline, it becomes harder to reach them.  If you can't reach them, you can't get their attention.  For marketers, it's a vicious circle.
Howard Ness Send private email
Tuesday, February 26, 2013
 
 
"The vendor will show up in the consumer's search results (if no one requests search results, they don't exist), whether or not the vendor advertises. "

For now.  We think.
dhimes Send private email
Tuesday, February 26, 2013
 
 
This is the reponse I got from Google:

"Thank you for your email. I completely do understand your concern and appreciate where you're coming from. Please allow me to explain.

Why this change?

I do understand that your software is specific to desktop computers, the lines between devices are quickly blurring, particularly between laptops and tablets now that there are hybrids devices (e.g., ultrabooks and convertible tablets). In the near future, many devices will have features including touchscreens, GPS, and internet connectivity. In many ways, search behavior on tablets is similar to laptops and desktops. Consider that a recent academic paper found that 82% of all tablet use occurs at home (see page 6). With these shifts, we think it's more important that marketers focus on reaching the right audience in the right context, rather than just targeting a specific device.

I do see that currently all your campaigns are legacy campaigns however once they are moved to Enhanced please be assured that we will always be there to assist you.

Conversion Optimizer:

Conversion Optimizer will ignore any bid adjustments you enter. In other words CPA bidding will work as usual. As you know features such as conversion optimizer, account for device, time and location in its algorithms. Therefore, conversion optimizer will bid in order to get more conversions and based on historical performance of the ads (in terms of conversions). So, if ads historically haven't performed well on tablets (low conversions) , the system will focus more on desktops to get more conversions.

Having said this , it is not a guarantee that ads on tablets will completely stop showing because conversion optimizer is an automatic method rather than a manual one. "

So it looks like conversion optimizer will set bids by device. But it also says "Conversion Optimizer will ignore any bid adjustments you enter.". Does that mean I can't turn off bids for mobile devices? That would really suck. I'm going to ask.
Andy Brice Send private email
Wednesday, February 27, 2013
 
 
ok Andy.

I wonder now how this will affect CTR and quality score if we are forced to display on incompatible devices...
B J Send private email
Thursday, February 28, 2013
 
 
I suspect it wouldn't affect CTR & quality unless your saying the software is for desktops only in the ad copy - I'd only be worried about wasting money on users who can't / are less likely to buy.
Jonathan Matthews Send private email
Thursday, February 28, 2013
 
 

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