Google’s revenue is based around search advertising, though they say they’re looking to take a whole new approach. Their AdWords program is being remade to offer an alternative in Dynamic Search Ads.
This new advertising product will allow advertisers to have their AdWords target the pages that they want to promote. Google then matches the ad with the best searches and generates an appropriate headline.
“We are basically redesigning AdWords from the ground up,” said product management director Baris Gultekin. “[Under the hood, Google is] flipping the search engine on its head.”
Dynamic Search Ads are being beta tested and won’t replace AdWords. Despite some trepidation advertisers are already seeing a five to 10 percent increase in conversions.
Gultekin predicts that Dynamic Search Ads are the future, because it’s more natural to start with a website rather than a long list of relevant keywords. It also makes it easier for advertisers to adapt their campaigns to limited promotions and limited supplies, because the new program will cut any campaigns pointing to pages that display “out of inventory” messages.
Source: AdWeek
