Google’s Search Generative Experience (SGE) has the potential to revolutionize PPC, presenting both unprecedented opportunities and challenges for marketers.
A panel of experts examined how our industry could change at SMX Next.
Brad Geddes, co-founder of Adalysis, spoke with Jyll Saskin Walesmarketing consultant at Jyll.ca, Greg KohlerSenior Director of Digital Marketing at ServiceMaster Brands and Aaron Levy, VP of Paid Search at Tinuiti.
Below is a summary of what they said.
What is SGE?
SGE is a big change from how searches normally work.
Previously, Google would display 10 blue links for user queries, and clicking on them would take users to websites, generating traffic.
With SGE, the process changes: answers to queries are given directly in the search results, eliminating the need to click on links. This change could have a significant impact on website traffic. As Geddes explained:
“Regardless of the search query, you’ll see answers and prompts where you can continue to click and refine your query or get more information without ever leaving a search result.” “Machine learning can change the search query without users doing anything different.”
Ads within SGE
Ads appear both above and directly below the SGE result. However, ad placement could change when the feature rolls out, according to Geddes:
“Google cares about share prices and how often ads are clicked. So I think we can expect even more integration before SGE goes live.”
Adoption of EMS
SGE is expected to impact search and digital marketing, but the group believes widespread adoption won’t happen anytime soon. Therefore, Wales does not expect significant changes in PPC metrics in the near future. She explained:
“I don’t think SGE adoption will be as widespread in the foreseeable future as you might think.” “Remember when voice search was supposed to be the next big thing? Then it was Google Assistant. [Digital marketers] they’re all connected to SGE because we’re vendors, but I don’t foresee the general public adopting it in the same way.”
The problem with SGE
The group agreed that while SGE can answer a wide range of queries, it often gives inaccurate answers, especially for proximity-based searches. This could affect the widespread adoption of the SGE. Levy explained
“I don’t think SGE will reach critical mass until it gets to a point where the numbers outnumber the wrong answers. Maybe in the three to five year range, once everyone gets used to it.” “I also don’t think that SGE is the right source for every type of query. So I don’t know that it will ever be the only experience we’ll have.”
Impact on CTR
Once SGE is fully implemented, the group believes advertisers will see a substantial impact on click-through rates (CTRs). Levy noted that his Google Ads rep has already started guiding him away from focusing on metrics like CTR.
“It seems like we’re being conditioned to stop looking at metrics like CTR and just look at things like cost per action (CPA) and return on advertising investment (ROAS). The same could be said for cost per click (CPC )”. “I think we all have opinions here that CPCs might be too high. But they’re definitely changing the dialogue from looking at CPCs and looking more towards pure return.” “That said, I don’t anticipate a big change in what I would consider true performance metrics. I don’t see that changing too much. It would throw too much of a wrench in everyone’s advertising plans, and probably Google’s earnings as well.”
PPC and SEO to unite?
While Gales doesn’t foresee major changes to PPC metrics anytime soon either, he does foresee SGE disrupting the way SEO and PPC experts collaborate. As search behaviors and results evolve, PPC and SEO marketers will work more closely together, he said:
“As marketers, we’re used to being super specialized, but those specialties are merging more and more because it’s just about providing an intent-rich experience to users.” “Therefore, we will need to work much more closely with practitioners and other marketing disciplines in the near future.”
The impact on keyword research
Gales explained that many in the industry believe that the era of relying heavily on specific keywords is fading. There is a shift towards a dynamic feed-based approach, where having a well-optimized website and using conversion tracking are becoming crucial.
This change means that Google’s algorithms, which pull information from multiple sources, play a bigger role in targeting and creativity.
The future could involve users finding what they need directly on Google, reducing the emphasis on selecting the perfect keyword and match type. Instead, the focus is on optimizing the website for both Google’s algorithms and human understanding.
A new approach
Following the launch of SGE, global search volume is expected to remain flat. However, according to Kohler, search suggestions can change based on user trends and behavior. He predicts that advertisers will be more interested in top-of-funnel content, such as display and video ads, affecting the economic model and increasing ads in these areas.
Kohler doesn’t see Google controlling user searches, but he expects a change in guiding users to the final questions. This is likely to influence the econometrics, but not necessarily the search volume.
How does this affect how you write your ads?
Google’s challenge with SGE is to seamlessly integrate ads in a natural, conversational way, avoiding a sales pitch. The current method, where call-to-action sentences are condensed, can feel awkward in the middle of a conversation.
Unlike Bing’s pop-up ad style, Google’s approach demands a change in the way we write ads. Levy elaborated:
“What we’re going to have to do is make sure that every single piece of an ad, every asset or extension is independent and nothing gets lost.” “I’m curious to see if Google will try to start rewriting ads and what that will end up doing in sensitive industries.”
Competition research and SGE
The panel agreed that considering what competitors are saying is valuable, but it’s critical to take it with a grain of salt. The challenge is determining if they are unique or just following Google’s RSA suggestions.
In a competitive landscape, where many use similar phrases, standing will be more crucial than ever. As Kohler explained:
“If you’re a plumber bidding against other plumbers and each one of them says ‘the best plumber in Milwaukee,’ you need to think about how to position yourself to stand out.” “Always look at what your competitors are saying, but also what they’re showing for.”
Time to develop new skills
Gales advised PPC marketers to expand their skills in anticipation of the launch of SGE. He emphasized that the days of focusing exclusively on keyword research, fine targeting and attribution are over.
Now is the right time to start honing your skills in video creation, copywriting, and comprehensive marketing strategies that go beyond traditional advertising platforms. Gales added:
“If you’re a search marketer and you’ve never tried to create a video before, if you’ve never worked on your copywriting skills, you’ve never developed a marketing strategy beyond what happens in Bing Ads or Google Ads, now is the time to learn”. “You start building those skills because these things are converging and being good enough will no longer be good enough in an SGE world.” “You’ll have to be the best, or you won’t last.”
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