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  • Author: Ken Traber
  • Date: November 23, 2016
  • Category: Online Advertising
How Do Changes in Google’s Algorithm Affect Your Business?

 

Google is the most commonly used search engine. When the company changes its algorithm, ripples are felt throughout the digital advertising industry. As an advertiser or a publisher, it is important to be aware of how changes in Google’s algorithm affect your business. Not being able to use Google products effectively for monetization of content, or to reach your intended consumers spells disaster for most online businesses.

Why does Google change its algorithm, and how does that affect businesses?
Google continually improves user experience with updates to its algorithm. For example, an update Google made to Adwords has a significant impact on ad buying. Removing the ads on the sidebar in a Google results page automatically increases bid pressure for the four ad spots at the top of the page. Being competitive for those spots could have a major impact of overall profitability on those campaigns for advertisers.

Google Rewards Good Traffic
From an advertiser’s perspective, good traffic is a user that searched on Google, found page results that contextually matched the query, and then clicked through to the result. Upon landing on the page the user should have no doubt that they are in the correct contextually relevant place.

Google Doesn’t Like Bad Traffic
Conversely, bad traffic is when a user clicks through thinking that there is relevance, but then ultimately finds that the page(s) are not truly related to the initial inquiry. This is a bait and switch page and will not go very far towards converting for an advertiser, or monetizing for a publisher.

Why Good and Bad Traffic Matter
Google’s designation of good or bad traffic matters, because it directly affects the potential performance of an advertiser, and performance is of course the advertiser’s main concern most of the time. On the other hand, a publisher running Adsense on her site will see more monetization potential from obtaining quality traffic. Additionally, once ads are engaged, and conversion rates are quantified, the publishers overall quality score will rise, and can earn them more monetization.

Google is Powerful
What Google says goes in the game of online advertising. Lately, the search engine monolith has been making changes to favor pages that are mobile friendly, and generally thoughtful to other device types. In response, ad networks have to make sure that their ad products are also mobile and tablet compatible. This helps publisher sites look more attractive to Google’s algorithm.

A while back, Google deemed ad products that use iframes as a bad experience for an advertiser’s landing page, and this practice became prohibited by Google advertisers. Therefore the use of such products has waned over time.

Ads that perform an immediate redirect upon landing are not allowed anymore either. Keen publishers and advertisers and the networks they work with have to stay on top of Google’s changes, or face a huge dip in results.

Great Resources for Staying Ahead of Google’s Algorithm Changes:

 

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