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Enhanced campaigns - A decisive tool for SMBs?

Google officially announced yesterday that it will be rolling out Enhanced Campaigns, a major Adwords update going to impact both device segmentation and bidding strategies of online advertisers.

The location-based mobile market is expected to grow from $300 million to 4.7$ billion in the next 5 years and Google wants to respond to this trend by providing advertisers with the appropriate tools. There is a second explanation to the update: customers are not just going mobile anymore, they are adopting a multi channel browsing behavior. The Adwords campaign structure is now going to reflect these two fundamental changes.

Let’s dive into the enhanced campaigns features and how they are going to impact SMBs:

Triple dimension bid adjustments

Enhanced campaigns will make contextual bidding possible. A max CPC will be set depending on the location of a potential customer, the time of its search and the device he is using. This will become very handy for businesses whose customers’ buying intent and purchasing behavior changes with their location, device and time of the day.

Google gives us the example of a pizza parlour:

‘A pizza restaurant probably wants to show one ad to someone searching for “pizza” at 1pm on their PC at work (perhaps a link to an online order form or menu), and a different ad to someone searching for “pizza” at 8pm on a smartphone a half-mile from the restaurant (perhaps a click-to-call phone number and restaurant locator).’

Contextual Ad Copy

The enhanced campaigns will deliver “smarter ads optimized for different user contexts”. This means that a different ad will be displayed depending on the same three parameters affecting the bidding process (device, time of day and location). Another great improvement comes with the update: scheduled Ad extensions.

Device based and location based ROI optimizations will get tricky

Let’s take the example of a regional florist who has a few shops across Virginia, a website with basic contact information and a small online shop. Now let’s say that the mobile version of the online shop is smaller than the regular one and drives a lower ROI. With the enhanced campaigns the florist shop won’t be able to make independent, keyword level bidding decisions for his mobile devices.

This update brings good news for small and businesses in terms of user friendliness and scaling simplicity. The aggregation of mobile and regular campaigns might however increase average mobile CPC prices and advertisers may loose a bit of control over device performance segmentation.