Last week Google launched “Instant Search.” Instant search essentially fills in words and phrases for you as you conduct a search on Google. For example, let’s say you start to type in “goo”. Before you get further, you’ll see a list of potential queries, like “Google” and “Goo Goo Dolls” and so on.
Google’s reasoning for launching this innovation, as with pretty much everything they do, is – on its face – simple: to improve user experience by helping users find what they need faster. For search engine marketers, however, what’s good for users is not necessarily good for PPC campaigns. Will Instant Search fundamentally change PPC forever?
As I see it, there are two big impacts from Google Instant Search that SEMs need to immediately address.
1. Instant Search increases the importance of head terms. Head terms refer to generic or very popular keywords in your account. Tail terms (or “long tail”) are the much targeted keywords with few queries. A head term example might be “mortgage” whereas a tail term would be “mortgage rates in Miami Florida for bad credit.” Because Instant Search immediately starts to suggest words as a user types, it stands to reason that this feature will result in more head term keywords and less long tail keywords.
In the example I gave above, a user who typed in “mort” might immediately see a suggested query of “mortgage rates” and decide to click on these results long before they complete a much longer query like “mortgage rates in Miami Florida . . .”
From a PPC perspective, this means that volume on head terms – and therefore the importance of showing up on these terms – will increase. Another way of thinking about this is that the head terms will be taking traffic from the tail terms. Hence, if advertisers currently making money on the tail still want to get the same volume they were previously getting, they will now need to spend more of their budget on the head terms. More advertisers bidding on fewer keywords will result in higher CPCs and more money for Google.
I believe that this is pretty consistent with Google’s existing policies. Several years ago I pondered whether keywords even mattered anymore and whether Google would one day go from a keyword-based system to a “category” based system. This move to Instant Search is consistent with that prediction. Long tail keywords cost Google money; getting as many advertisers as possible to bid on fewer keywords is very profitable!
2. Instant Search increases the importance of bidding separately for Google versus the Google Search Partners Network. Many people do not realize that when you buy ads through AdWords, your ad can essentially show up in one of three places: Google search results, the Google Display Network (content sites), or on Google search partners like AOL and Ask.com. Often, the performance on Google search and Partner search sites can be very different, as the demographics of users on these sites vary.
The advent of Google Instant Search will further change the results between Google and Partner search results. Because partners like AOL and Ask do not have Instant Search functionality, you can expect to get more results on long tail queries on Google partners than on Google. If you assume that long tail queries are more valuable (since they are more targeted) than head terms, the result may well be that the relative value of partner search results vis-à-vis Google search results will increase.
While Google doesn’t currently allow you to bid only on the Partner network, you can at least set up two campaigns with one set to Google only and one to Google plus the Partner network. You could then focus on head terms in the Google only campaign, and focus on tail terms in the Google plus Partner network campaign, and adjust bids over time to reflect differences in performance.
Keep in mind that Instant Search is only days old at this point so no one really knows how this functionality will really impact AdWords campaigns. And like many Google product launches, the initial launch is usually fundamentally different than subsequent releases. So watch your AdWords campaigns closely, watch for announcements from Google, and don’t make rash changes until the metrics suggest to do so!
**************************************
David Rodnitzky is Founder of PPC Associates, a leading SEM agency in San Francisco. To learn more about full service AdWords management from PPC Associates, contact David at david@ppcassociates.com.







