Google Inc (NASDAQ:GOOG)'s recent upgrade is making things more difficult for advertisers. On Wednesday, the search engine giant announced that they were changing adwords and how they work on mobile devices. Now advertiser are expressing their dislike for the new changes.
Previously Google's search words brought out different campaigns for computers, tablets, and mobile phones. This meant they would pay different prices for different results and since there was minimal bids for users, the cost-per-click was low. Essentially, desktop ads (which were once thriving) are declining thanks to the influx of mobile ads and the latter isn't as lucrative as the former.
Now Google Inc (NASDAQ:GOOG) wants to streamline their Adwords process by advertisers purchasing a package that includes all three mediums for one price. Although advertising companies can choose whether they want more mobile or desktop ads, they still don't get much of a choice.
According to some of the clients, the problem with this change is that it will raise the prices of cost-per-click advertisements that run on mobile phones. There is also a concern that performance rates may go down.
Wordstream CEO Larry Kim, who helped make contributions to the changes, thinks all the concern is mere hype. "I’m thrilled that it’s going away because it was so complicated that almost nobody used it (around 5%)." As for the reason why it was hardly used, "It looks like some kind of complicated nuclear submarine control panel – there are so many different device and network combinations," he told BI.
This change may prove to be beneficial in the long run as technology constantly changes and products are sometimes merged. It would make more sense to keep all mediums together in one package.
Unfortunately, advertisers still don't see it that way. Despite these changes, Google Inc (NASDAQ:GOOG) will still offer smaller packages for mobile or desktop campaigns only. Buyers can select mobile/desktop to weigh -100 and no campaigns will run on the desktop.