Google Testing Huge Banner Ads For Branded Queries

Google has confirmed that they are testing incredibly large banner ads for specific branded queries.
@SynrgyHQ posted an image on Twitter showing for the query [southwest airlines a huge “sponsored” ad at the top of the search results.
A Google spokesperson confirmed this is a “small experiment” running currently in the U.S. market.
The ad seems to take up the majority of the screen real estate. I assume since it is a very branded query, Google finds this ad to be relevant and they are testing to see the click-through on this ad.

The No Banner Ads Ever Promise

In 2005, Google promised that banner ads would never come to web search, saying:

There will be no banner ads on the Google homepage or web search results pages. There will not be crazy, flashy, graphical doodads flying and popping up all over the Google site. Ever.

Eight years later, it seems Google may be ready to break that promise.

Improving Ad Rank to show more relevant ad extensions and formats

When people use Google to research and buy things, they're interested in the most relevant and useful results. Ad extensions help by providing more information to potential customers and additional ways for them to respond. For example, they can call your business number, see your business location on a map, or choose an even more relevant landing page that you're promoting with sitelinks. Ad extensions typically improve clickthrough rate and overall campaign performance because they make ads more useful.

Today, Google announced improvements in the AdWords auction that let us more consistently show more relevant ad extensions and formats.

Ad Rank improvements

 Google system for ordering ads on search results pages uses a calculation called Ad Rank. Previously, Ad Rank was calculated using max CPC bid and your Quality Score. With this update, Ad Rank will also take into account a third component: the expected impact from your ad extensions and formats. In addition, Google have increased the importance of Ad Rank in determining whether your ad is eligible to be displayed with extensions and formats.

Here are some more details and implications of these changes:

• Ad extensions and formats can now influence the position of your ad on the search results page. If two competing ads have the same bid and quality, then the ad with the more positive expected impact from extensions will generally appear in a higher position than the other.
• When estimating the expected impact of extensions and ad formats, we consider such factors as the relevance, clickthrough rates, and the prominence of the extensions or formats on the search results page.
• Because Ad Rank is now more important in determining whether your ad is shown with extensions and formats, you might need to increase your Quality Score, bid, or both for extensions and formats to appear. 
• In each auction, we'll generally show your highest performing and most useful combination of extensions and formats among those eligible. So there's no need to try to guess which extensions will help improve your clickthrough rate the most. 
• You may see lower or higher average CPCs in your account. You may see lower CPCs if your extensions and formats are highly relevant, and we expect a large positive performance impact relative to other competitors in the auction. In other cases, you may see higher CPCs because of an improvement in ad position or increased competition from other ads with a high expected impact from formats.
• For now, this update only affects search ads appearing on Google Search.

Recommendations for using extensions

Extensions make your ads more useful and can improve your campaign performance. So you should add extensions that make sense for your business type and campaign goals. With these improvements to AdRank, Google systems will do even more to automatically serve extensions in the contexts when they're most beneficial.

For example, consider someone downtown searching on a mobile phone for "auto repair." In this example, the user might be most likely to respond to your ad when they can click to call a phone number or tap a link to get directions to visit in person. So Google may show a combination of call and location extensions with your mobile search ad.

Now imagine if someone were searching for "auto repair" on a laptop computer in the suburbs. Say your ad earned the 3rd ad position above the organic results in this auction. Google might show your seller rating and sitelinks because that's the highest performing and most useful combination of extensions that could be shown with your ad in this particular auction and ad position.

Introducing Shopping campaigns: a better way to promote your products on Google

Everyday, people search on Google for the best products from retailers large and small. With Product Listing Ads (PLA) on Google Shopping, people can browse a wide selection of products, finding high-quality imagery and relevant product information like brand and price.

To make it easier for you to connect with these consumers and promote your products on Google, Google introducing Shopping campaigns, a new campaign type for PLAs. Shopping campaigns streamline how you manage and bid on your products, report on your performance, and find opportunities to grow your traffic from Google.

Key benefits

1. Retail-centric way to manage your products

Shopping campaigns allow you to browse your product inventory directly in AdWords and create product groups for the items you want to bid on. For example, if you’re a fashion retailer, you’ll see what types of shoes are in your data feed and how many boots you can promote. You use the product attributes derived from your data feed such as Google product category, product type, brand, condition, item id and custom labels to organize your inventory into product groups. Custom labels are a new, structured way to tag your products in your data feed with attributes that matter to you, such as ‘margin’ to separate your high- and low-margin products. To see all the items you can bid on, the Products tab will show you a full list of your approved products and their product attributes.

2. Advanced reporting to measure product performance

Regardless of how you choose to structure your product groups, Shopping campaigns offer the unprecedented ability to view your performance data by product or product attribute. Since performance metrics are associated with the item and not the product group, you can filter and segment data by your product attributes. This includes Google product category, product type, brand, condition, item id and custom labels. For example, you’ll see which Apparel & Accessories categories drive the most clicks, without having to break out your clothing category into a separate product group.

3. Competitive data to size your opportunity

To help you optimize and scale your PLAs, Shopping campaigns provide insights into your competitive landscape. In the Product Groups tab, you can add benchmark columns to see the estimated average CTR and Max CPC for other advertisers with similar products. The competitive performance data you see is aggregated and averaged, so all performance data is anonymous. Coming soon, you’ll have impression share columns to help you understand the opportunity lost due to insufficient bids and budgets, and a bid simulator will help you estimate the amount of impressions you’ll receive as you adjust your bids.

How to get started

Shopping campaigns are currently available to a limited number of advertisers. It will be rolling out gradually in the US, with full global availability by early next year. API support will come in 2014 as well.