Solving the problem of brand keyword CPC increases on Google and aberrant indicator behavior

Supersitelinks or enhanced sitelinks example

Sitelinks example

In the case of a "brand" search query, sitelinks are the links displayed below certain websites in Google search results. Supersitelinks allow two additional description phrases to be displayed below the sitelinks. Each sitelink / supersitelink has its own indicators (CPC, CTR), making it possible to analyze each link's performance.

In theory, these extensions enrich the ad content and therefore are supposed to improve the click rate, thereby lowering the CPC. However, they are not displayed systematically, and it depends on their relevance as determined by Google's criteria.

What are sitelinks and supersitelinks?

Over the past months, Keyade consultants have observed an unusual and inexplicable increase in Google's Cost Per Click (CPC) on exact brand keywords.

While accustomed to minor algorithmic changes by the Internet giant (Google makes over 500 changes a year to its algorithm), our Keyade consultants tested the various parameters that are taken into account when calculating an ad's quality score (QS). A high QS demonstrates compliance with the value chain and particularly that the ad is relevant to web users, and therefore normally acts to keep CPCs low. After running some tests, it seems we appear to have found the culprit: sitelinks and supersitelinks.

An unusual increase in brand CPCs

OBSERVATION

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SOLVING THE PROBLEM OF BRAND KEYWORD CPC INCREASES ON GOOGLE AND ABERRANT INDICATOR BEHAVIOR

January 2015

*source: lereferencementnaturel.org

The result: The ads, now less qualitative, experienced a drop in overall clicks, therefore generating higher CPCs.

Another test consisted of removing the supersitelinks and only configuring two sitelinks per ad. The idea was to keep enough content to make the ad attractive while consolidating the clicks. The sitelinks’ click rate was expected to go up, increasing the QS (and thus lowering the CPC).

3. Optimize the click rate per sitelink

The result: While a drop in CPC was indeed noted, the ads were however broadcast less frequently and the sitelinks had disappeared, resulting in a lower click rate.

Keyade consultants lowered their bids on brand keywords while stil l submitting bids higher than the current CPC. The idea was to see whether Google would pass this rebalancing onto the real CPCs.

2. Decrease bid rates on the brand

The result: All CPCs equalized at the same level without a significant decrease.

Using the principle of natural selection, Keyade increased the instances of sitelinks in ads to identify the best ones and remove those whose CPC was too high.

1. Select the best sitelinks

Keyade performed tests on sitelinks and supersitelinks in order to lower CPCs.

TESTS


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Example of a recommendation for a retail advertiser.Note: These recommendations may vary from one advertiser to the next

even within the same industry sector.

2 sitelinksGood volume and better CVR

4 sitelinksQualified traffic and low CPC

4 supersitelinksHigher volume and CTR

4 supersitelinksHigher volume and CVR

Capped budget

Open budget

Maximizeconversions

Maximizetraffic

How to anticipate the behavior of sitelinks, when they are displayed, and their impact on the click rate and CPC?

Keyade carried out tests focused on sitelinks and supersitelinks, based on variations in several parameters: the nature of the extensions (SL or SSL) and their number (0, 2 or 4). The test was performed on the basis of the brand being assigned 100% of the share of voice.

Keyade consultants were thus able to generate a set of custom responses in the form of a chart showing the best sitelink/supersitelink combinations based on the advertiser's budget strategy and objective.

CUSTOM SOLUTIONS


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Keyade is an agency specializing in performance-based online media acquisition (Keyade Agency), and its conversion using dedicated technologies and services (Madmetrics). Launched in 2006, Keyade now operates in over 80 countries from its offices in Paris, France, and Dubai, UAE. Its client portfolio includes OLX, Meetic/Match.com, Air France, Jumeirah, Redoute and Parrot. In 2014, Keyade joins GroupM/WPP.

Headquarters: Keyade, 8 rue du Sentier, 75002 Paris - FranceSimplified joint-stock company (SAS) with a capital of 49,481 Euros, registered with the Trade and Commerce Register of Paris under number B 490 339207—CNIL (National Commission for Information Technology and Privacy) no. 1244457

www.keyade.com / [email protected] / +33 (0) 1.44.79.38.13

Google's legendary opaqueness

While the various tests carried out did not uncover the particular logic or mechanism behind the increase in brand keyword CPCs, the overall explanation is nonetheless clear: Google has raised its prices. It is not the increase itself that comes as a surprise to our Keyade consultants. Rather they reproach the online giant for its lack of communication, behavior that runs contrary to the very principle of the value chain, and the ease with which it hides behind the "black box" of Quality Score to calculate CPCs.

Mastering the "boomerang effect"

These days, many advertisers have questions as to whether they should purchase their brand name on Google. The usefulness of such a move so may appear limited when an increase in CPC (up to +400% observed in some cases) decreases the brand's profitability. However, to stop bidding on one's brand can entail serious consequences given that an average of 75% of all conversions are attributed to brand keywords for advertisers purchasing their brand name. Furthermore, purchasing one's brand is a good way to supplement the efforts generated through SEO or to stake out a better position vis-à-vis the competition. Brand keywords also allow the company to display content that is "hot" and which they control, a useful option when there is important sales-impacting news to disseminate quickly.

TAKING THE MATTER FURTHER


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