Efforts to Reduce Accidental Clicks Could Hurt Google’s Revenue

Here’s a prime case of you just can’t please everyone. Upon announcing that Google’s near-term advertising revenues might experience some negative effects from efforts to reduce accidental clicks, shares of Google dipped slightly on Tuesday.

A SEC filing on Friday revealed that Google was taking steps to improve the relevency of ads on its sites by removing those that generated low click-through rates, and those that directed users to low quality and irrelevent sites. This is the same language they use in most of their filings, and nothing really new.  However, what did catch the attention of investors was a new line in which they mentioned that they were attempting to reduce the number of accidental clicks on its websites and that “these steps could negatively affect our near-term advertising.”

Google has changed the clickable area around the text-based ads to include just the title and URL.  This, in turn, is supposed to reduce the number of accidental clicks and increase advertiser return on investment.

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6 thoughts on “Efforts to Reduce Accidental Clicks Could Hurt Google’s Revenue

  1. After Google changed the Clickable area, I in fact had a lower bounce rate with my AdWords.

    But, then my CTR has gone crazy. I usually had a very decent Daily CTR around 9-12% (I´m in a very small and specific niche), but after Google changed the Clickable area, I´m having some good CTR days and some other poor CTR days.

    Julie, can you share any tips to increase CTR (AdWords writing tips) or any other tip that may help me to stabilize my daily ctr´s.


  2. No, it should not impact Revenue, though it must impact your avg. cpc, CTR Quality Score etc. Please note, If it reduces your CTR, QS goes down which increases your bid. People will like to consume their daily budget so I see bid prices going higher. Those who interpreted it as lessening revenue, have missed the fact that it is an auction. Google has improved the click quality, so ppl., should not mind paying higher for individual clicks.

  3. Thank you Google. There are a ton of irrelevant pages in the PPC listings. At least this is true in the arena we play in. I’m encouraged by anything Google does to remove the junk in their listings. It definitely makes a better experience for everyone except the people who are having ads removed.