September 10, 2010

Google Instant Poised to Impact Paid Search and Google Ad Revenues More than SEO

Google Introduces Google Instant SearchThe launch of Google Instant Search this week has the entire Internet buzzing about what it will mean to search.

Although many are speculating that Google Instant could be a game changer for SEO, Google Instant will impact SEM or Paid Search even more…creating greater advertising revenue opportunities, making Google shareholders very happy.

Google Instant is more likely to impact SEM paid ads than SEO and organic search engine results.

Instead of presenting one page of results for a keyword or phrase, Google Instant streams results as each letter of each keyword is entered resulting in multiple pages of results, including related ads, flashing before the user…creating a greater volume of “pages” to place ads.
 

Google Instant essentially multiplies Paid search engine advertising opportunities by 20.

Google Instant will impact those dependent upon Paid Search for website traffic more than SEO and Organic Search.
-Rebecca Murtagh,
Chief Strategist and President of Karner Blue Marketing 

Here’s how…

At the Google Instant launch event, Google stated that Google Instant will not change SEO, but rather how the results are displayed.

How Google Instant Just Multiplied Google’s Advertising Revenue Potential by 20

The average search contains 20 characters. During launch presentations Google explained how instead of one dynamically generated page of static HTML results, Google Instant will dynamically deliver results adapting to every letter typed in real-time using an Ajax application.

So, instead of one page of search engine results, there are now 20 possible “pages” of results” per keyword query…and 20 times more opportunities for Google sponsored ads / Adwords ads to appear.

Without issuing a forward-looking projection about Google Instant’s impact on Google Advertising Revenue, this video of Sergey Brin, Co-Founder and President of Google on AOL’s Daily Finance could be interpreted to confirm this theory:

We invite your comments, thoughts and predictions…

will Google Instant have a bigger impact on Paid Search or Organic Search

?

5 thoughts on “Google Instant Will Change SEM Paid Search More Than SEO

  1. Hi Karner Blue team and Ms. Murtagh,

    Thanks for opening up the comments! Sorry that it was a public call out, I tried DMing you on Twitter but you aren’t following me *hint hint 😉 *

    I think saying that it has the possibility to increase revenue by 20X is a little exaggerated.

    First off, there are not typically 20 different search results for a 20 letter query. The results don’t update every letter. Let’s say I was searching for “cherry vanilla pepsi” – that pretty closely fits your average search length. Here are the results I get for every letter:

    c – Craigslist
    h – chase
    e – chelsea clinton
    r – cherry plain state park (starting to figure things out)
    r – cherry
    y – cherry
    [space] – cherry plain state park
    v – cherry valley ny (localized?)
    a – same
    n – cherry vanilla – getting closer!
    i – same
    l – same
    l – same
    a – same
    [space] – cherry vanilla nyquil (didn’t know they made it this tasty!)
    p – cherry vanilla pepsi – bingo!

    Here we go. Typing it at a snail’s hunt and pecking pace, I get… 10 different result sets? If I type at my normal speed it looks like it updates 2 times before figuring it out. At a slightly slower speed, I get four clear results for cherry, cherry valley state park, and cherry vanilla before getting the right one. That’s a far cry from 20.

    If I wanted to play with Google Instant results, I might think “I can advertise for cherry”. But, that doesn’t make very much sense because most people won’t be searching for cherry vanilla pepsi. Maybe I’ll get lucky and they were going to type “cherry coke”, but see my ad and click it instead. Advertising on Cherry Valley State Park, or Chelsea Clinton won’t do very much good.

    Now, there are most likely cases where a site will want to take into account some Instant results and do a little PPC campaign, like possibly Pepsi trying to “steal” searches for cherry coke. Or even Citi capitalizing on Chase customers by advertising on Craigslist searches! It sounds ludicrous, but I’m sure some businesses will find a way to utilize it.

    There are definitely going to be fluctuations and permanent changes in both Organic and Paid search, which will change the strategies of SEO and SEM. I think somehow, in some way this update is going to make Google more money.

    @matthiaswh – in case you were wondering… 🙂

    • admin

      A very thought provoking response indeed Mathias.

      Here’s a slightly different perspective…
      Start typing in the word Shoes…then imagine all the possibilities…this is just one example of how ecommerce and online retail companies who rely heavily upon PPC Paid search for website traffic will feel Google Instant.

      And, of course Google doesn’t do anything without thinking about shareholder value…just look at today’s stock activity.
      Google Instant will provide very interesting changes and challenges.

      Thanks for reading and commenting, hope you’ll check back in again soon!
      Rebecca and the Karner Blue Marketing Team

      And we just followed you back from both Twitter accounts : )

  2. What a writeup!! Very informative also easy to understand. Looking for more such blogposts!! Do you have a twitter?
    I recommended it on digg. The only thing that it’s missing is a bit of color. Nevertheless thank you for this blog.

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