Is Google ads still recommended in 2023?

Google Ads is one of the most popular and effective online advertising platforms in the world. Millions of businesses use it to reach potential customers, drive traffic to their websites, and generate leads and sales. But with the constant changes and updates that Google makes to its platform, is Google Ads still worth investing in 2023?

In this blog post, we will explore some of the major changes that Google Ads has introduced or announced for 2023, and how they might affect your advertising strategy and performance. We will also share some tips and best practices to help you optimize your campaigns and get the most out of Google Ads in 2023.

Cost per lead increases (nearly) across the board

One of the biggest challenges that advertisers faced in 2022 was the rising cost per lead (CPL) across almost all industries and markets. According to WordStream, the average CPL for Google Ads increased by 21% from 2021 to 2022, reaching $56.11. Some of the factors that contributed to this increase were:

– The global pandemic and its impact on consumer behavior and demand
– The supply chain disruptions and inflation that affected many businesses
– The increased competition and saturation in the online advertising space
– The changes in privacy regulations and tracking technologies that limited targeting and measurement capabilities

While some of these factors might ease up or resolve in 2023, others are likely to persist or even intensify. Therefore, advertisers should expect CPLs to continue to rise or at least remain high in 2023, and adjust their budgets and expectations accordingly.

However, this does not mean that Google Ads is no longer profitable or effective. It just means that advertisers need to be more strategic and creative with their campaigns, and focus on optimizing their quality score, conversion rate, and return on ad spend (ROAS).

Some of the ways to do that are:

– Conducting thorough keyword research and using negative keywords to avoid irrelevant or low-intent traffic
– Creating compelling and relevant ad copy that matches the user’s search intent and highlights your unique value proposition
– Using ad extensions to enhance your ads with additional information and calls to action
– Testing different ad variations and landing pages to find the best-performing combinations
– Segmenting your audiences based on their characteristics, behaviors, and stages in the buyer’s journey
– Using remarketing and customer match to re-engage your existing or past customers
– Leveraging automation and smart bidding strategies to optimize your bids and budgets based on your goals

Expanded text ads meet their end

Another major change that Google Ads announced for 2023 is the end of expanded text ads (ETAs), which have been the standard ad format for search campaigns since 2016. ETAs allow advertisers to create ads with three headlines, two descriptions, and a display URL, with a maximum of 90 characters for each headline and description.

Starting June 30, 2023, advertisers will no longer be able to create new ETAs or edit existing ones. Instead, they will have to use responsive search ads (RSAs), which are a newer ad format that Google introduced in 2018. RSAs allow advertisers to create ads with up to 15 headlines and four descriptions, with a maximum of 30 characters for each headline and 90 characters for each description.

Google then uses machine learning to automatically test different combinations of headlines and descriptions, and show the most relevant and effective ones to each user based on their query, device, location, and other factors.

According to Google, RSAs can improve ad performance by increasing impressions, clicks, conversions, and ROAS. However, some advertisers have reported mixed results with RSAs, especially when compared to well-optimized ETAs.

Therefore, before ETAs are phased out completely, advertisers should take some steps to prepare for the transition and ensure a smooth switch to RSAs. Some of these steps are:

– Reviewing your existing ETAs and identifying the best-performing ones based on your metrics
– Creating RSAs for each ad group using your best-performing ETAs as a starting point
– Adding more headlines and descriptions to your RSAs that include your keywords, benefits, features, offers, calls to action, etc.
– Pinning certain headlines or descriptions to specific positions if you want to control