What Impact Will Google Yellow Ad Labels Have On Your Campaign?

Google has recently expanded the inclusion of its Yellow Ad Labels to highlight all ads at the top of desktop-based search results pages after rolling out the labels on mobile some three months ago to coincide with their move to “Enhanced Campaigns.” The ad label test was rolled out in the UK, Germany, France, US and Canada but was not being used on all searches. More on that in a moment…

The traditional highlighted box has been replaced by the Yellow Ad Label in order to comply with a US FTC regulation.

The rollout occurred quietly, without much fanfare and to date the feedback from the search community has centered on a drop in clickthrough rates due to the new Ad labels. While clickthrough rates do not appear to have been impacted on mobile-based browsing, search blogs have lit up with feedback on desktop-based browsing that show some advertisers experiencing a drop in CTR anywhere from 30-50%.

We have since learned that by end of the day yesterday (December 4th) two new changes will have been rolled out:

The first will see new labeling globally across 100% of searches and will feature the same look and feel across both mobile & desktop. The second will see Product Listing Ads (PLAs) move from their traditional position on the right hand side of the page to now occupy the space above the top paid search ads on the left, when relevant to the query.

What impact will all this have? Media Experts will continue to monitor the roll out and its effect on both clickthrough and conversion rates.

What’s YOUR take? Leave your comments below.