Why Is Google Redesigning AdWords?

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Recently Alphabet Inc.’s subsidiary Google (NASDAQ:GOOG)   announced in a blog post that it is making changes to its AdWords platform to make it easier for marketers to manage their advertising in a ‘mobile first’ world.  As predictable web sessions are being replaced with numerous short bursts of digital activity primarily on mobile phones, Google is looking to provide advertisers with tools to manage the complexities of digital advertising in smarter ways.  From being a text only ad platform, AdWords now encompasses display and video media that can be bought on YouTube and across the web. As internet advertising undergoes a transformation, with a significant increase in smartphones and video consumption, Google’s attempt to redesign Adwords should make it easier for advertisers to use its platform and give it a competitive edge over competitors such as Facebook.

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Making AdWords Relevant For The Future

As internet advertising moves from text-based static ads to other formats (most notably video ads), Google is looking to make AdWords relevant to manage the increasing complexities in digital advertising. According to eMarketer, U.S. digital video ad spending is likely to reach nearly $15 billion by 2019, comprising more than 16% of the total digital ad spending. Competitors such as Facebook are increasing their focus on video content and working at innovating ways to attract more video advertisers. (Read How Facebook Is Working On Attracting More Video Advertisers?). Google’s video platform YouTube is likely to attract more advertisers as video consumption increases and a redesigned AdWords with capabilities to manage and effectively monitor different ad formats will be very useful for Google’s advertisers.

Google is looking to make AdWords more customizable for individual needs and provide simple yet effective tools for marketers to manage their campaigns.  For instance AdWords will now prominently show performance of the campaign for each device (smartphone, tablet and desktop), as Google understands the importance of advertising through multiple channels. It will also give advertisers easy access to relevant data, such as the percentage of traffic coming from mobile devices or results of each campaign. While much of this information was available in the earlier version of AdWords, Google is now looking to provide quick and easy access to this data in a customizable way to make it simpler for advertisers.

As internet advertising enters a new era, companies are looking at ways to help advertisers improve their ROI on digital campaigns. We believe Google’s initiative to redesign AdWords and provide more information in less clicks will improve advertiser experience on its platform, thus attracting more business. The redesign is to be rolled out this year and next and we believe innovation in AdWords is an essential element for Google to increase advertising volume on its platform.

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