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exact phrase or closed variants ?

Follower ✭ ☆ ☆
# 2
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Changing policy from quality into the higher bidder ?


I have recently read that there will be a change to exact phrase match type of Adwords with close variants.

I wonder what is the reason for that movement.


According to Adwords the ad ranking is calculated based on the formula below:

max CPC bid * Quality score

Quality score is depending on the usefulness and the relevance of the ad, keyword and landing page.

The more exact phrase it is used, the less traffic you have, but from the lower traffic the percentage of people who convert is higher. These searchers really know what they are looking for. They have entered into the marketing cycle called "Buy".

So the more the conversion the higher the CTR. This magic metric that correlates to higher quality score.

The higher the quality score the less the max CPC bid. On the opposite the lower the quality score the higher the max bid should be.

According to the above thinking, is it possible that Adwords is changing policy in respect to how much a landing page is relevant and useful into higher bids ?

 

I would like to have your opinion on that thought.

thanks in advance

2 Expert replyverified_user

changing from exact phrase into closed variants

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Changing policy from quality into the higher bidder ?


I have recently read that there will be a change to exact phrase match type of Adwords with close variants.

I wonder what is the reason for that movement.


According to Adwords the ad ranking is calculated based on the formula below:

max CPC bid * Quality score

Quality score is depending on the usefulness and the relevance of the ad, keyword and landing page.

The more exact phrase it is used, the less traffic you have, but from the lower traffic the percentage of people who convert is higher. These searchers really know what they are looking for. They have entered into the marketing cycle called "Buy".

So the more the conversion the higher the CTR. This magic metric that correlates to higher quality score.

The higher the quality score the less the max CPC bid. On the opposite the lower the quality score the higher the max bid should be.

According to the above thinking, is it possible that Adwords is changing policy in respect to how much a landing page is relevant and useful into higher bids ?

 

I would like to have your opinion on that thought.

thanks in advance

Re: exact phrase or closed variants ?

Participant ✭ ✭ ✭
# 3
Participant ✭ ✭ ✭
Hey Loannis,

Could you tell us where you read this proposed change or what exactly the change entails?

Thank you

Re: exact phrase or closed variants ?

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# 4
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Read this article, http://adwords.blogspot.gr/2014/08/close-variant-matching-for-all-exact.html Also communities in Google + have also mentioned the above issue.

Re: exact phrase or closed variants ?

Participant ✭ ✭ ✭
# 5
Participant ✭ ✭ ✭
Nevermind, found what you are referring to and will report back momentarily.

For those wondering, it is the removal of the option to opt out of close variants for exact and phrase match. So the default opt in for close variants is no longer an option, all exact match and phrase match will include close variants.

Re: exact phrase or closed variants ?

Participant ✭ ✭ ✭
# 6
Participant ✭ ✭ ✭
This is an interesting change, but I believe is somewhat unnecessary.

According to few articles out there already it would seem that approximately only 3% of advertiser opt out of the close variants match in the first place, I suppose google would be the only people to tell us accurately how many advertisers are actually opting out.

I Imagine the majority of advertisers who do opt out, are those using an alpha campaign format with single keyword ad groups as they require the greatest amount of control over specific terms.

So should we be worried about this? I don't think so as it will only affect those that actually opt out of close variants.

If you are one of those that opt out, all is not lost as negatives will still act in the same way, so you can block the negative variations that you do not wish to show up.

As to why is google doing this? Well they say it is to reduce account complexity, which is understandable as that will make it more accessible. I don't think there is too much too read into here, it may be that simple.

It will be interesting to see the studies that rise out of this change, as there undoubtedly will be a number.

Any one have thoughts on the change?

Re: exact phrase or closed variants ?

Top Contributor
# 7
Top Contributor

Hi Ioannis, firstly, as Clynton has said it's important to note that the vast majority of Campaigns will be unaffected by this change as it is already the default condition for close variants to be applied.  

 

More importantly, there's a big difference being the intent behind an exact match and the principle of variants.  Exact matches are useful when you wish to ensure the matching search term is not extended in any way that would reduce relevancy.  However that doesn't mean that the exact Keyword shouldn't include variations such as spelling errors and punctuation.  If I'm targeting [buy shoes online], I'm going to want my Keyword to match "buy sheos online", as a simple example.

 

If pluralisation or variations cause irrelevancy, then they can be excluded using negative Keywords, since negatives work only on the exact form of the negative.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: exact phrase or closed variants ?

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# 8
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Thank you Cobnut for your reply.
Using negative keywords was also the suggestion of Clynton M above. The problem with
the negative keywords could be presented as follows:

a) The importance of negative keywords in displaying an ad differs according to the Network that the ad is referring to: GDN or GSN.

b) It is unrealistic for a busy marketer who has many campaigns and adgroup sets, to try to find all the possible negative or excluded keywords in case of exact or phrase match keywords, just to exclude irrelevant clicks on the ads.

The above issue has been covered from Adwords by using the broad match type, or the "variant" type of broad match modifier.

Further I agree with Ahmed above, but it is exactly that policy that Google may set in danger when subtracting the option for using or not close variants in case of phrase match. Otherwise, that option wouldn't be there from the first time.

Moreover, Adwords is using CTR primarily for the quality score. What if that CTR decreases because of that change in policy ?
And also there is a factor called Landing page experience. This is measured primarily by the bounce rate according to Keith Penn. Imagine what will happen when the bounce rate changes because of that change in the policy.

Who will count the effects of that changes in the ranking of ads, the CTR, the bounce rate etc?

Re: exact phrase or closed variants ?

Top Contributor
# 9
Top Contributor

Hi Ioannis, I'm not sure I understand your reference to the GDN as all Keywords are treated as Broad match on the GDN and as such have always been subject to variants.

 

As far as not having time to prepare proper lists of negatives, I think you're over-estimating how many people will need to do this at all, and for those that do, how many negatives will be needed.  You'll only need to use negatives if one or more close variants of your exact Keywords is proven to be unprofitable/irrelevant and IF you find such terms, there won't be that many for each Keyword.

 

As has already been mentioned, this change is likely to affect no more than 3% of all advertisers and, personally, I'm willing to bet that a good percentage of those should probably be using close variants anyway.


Can you explain why you specifically don't use close variants?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: exact phrase or closed variants ?

Top Contributor
# 10
Top Contributor

I think this  change is long overdue, and was confusing one, from the beginning.

 

When Google included "closed variants" in exact and phrase match, back then, it kept the option to opt out, for those who wished to continue and have a  "break down" of the variants,  listed separately.

 

That led  to a variety of strategies / best practices (whether to list all variants separately,  or to break-down, or a mix of the two) which was more confusing than helpful.

Now, Google comes  and says that  breaking down KWs into variants is complex,  (apparently)  does  not help  much, and makes campaign management harder to manage. So, it is removed. (>>"With this update, you no longer have to build exhaustive lists of misspelled, abbreviated, and other close variations of your keywords to get the coverage you want.")

 

As for the QS component - it hasn't changed: the perdomint component is the CTR. Here is a Google white paper about  QS

-Moshe

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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