Google testing new design for AdWords ads

Google has been testing a revamped design for its Google AdWords ads in the UK over the weekend. However, it was visible to logged out users only, as any search query performed from a logged in account would show the old design.

The AdWords ads area is lacking the coloured background, but each of the ad listings is showing up with a prominent and very visible “Ad” text in a strong yellow background next to the display URL:

Google is surely testing this carefully, since this change might strongly affect the CTR of paid search ads. Even if the coloured background in the ads area is gone now, we believe this change makes even more obvious the difference between paid and organic listings.

It is an improvement from a “user experience” point of view, but as it is easier to distinguish between ads and organic listings, it might reduce AdWords campaigns’ performance. Users are simply less likely to click or interact with something that looks like an ad.

This can have a huge impact and drastically reduce click-through rates of AdWords ads, and since Google AdWords is the main source of Google’s revenue they will ensure to watch this closely.

Do you think this new design would negatively affect Google AdWords campaigns? Let us know in the comments.

Iñigo Etxebeste, November 18, 2013