If you follow me on social media you may have noticed a recent post about Google Ads charging businesses an extra 2%, starting on 1st November 2020. I thought it would be worth writing a quick blog about this update, along with some other Google Ads changes which have been announced recently.
Digital Services Taxes
If you are advertising on Google Ads, you will soon be charged an additional 2% which will be added on top of your account budget. This new Digital Services Tax was actually introduced in March to the likes of Google, Amazon and Facebook, but it is likely this rollout for customers has been delayed due to COVID. Amazon have also alerted sellers that this 2% charge will be implemented on 1st September.
How To Prepare For This Change
One really important thing to note with the introduction of this 2% fee is that it will be added on top of your account budget. You will therefore need to factor this into your advertising spend each month.
Another thing to be aware of starting in November is your ‘Cost Per Conversion’ metric. Remember that this will also take into account this additional 2%, so your data is bound to look higher than normal. When thinking about your Cost Per Acquisition, you need to start looking at this figure now and working out how much this is going to change by in November. Are you able to optimise your campaigns better now to reduce your Cost Per Acquisition before this extra 2% comes in?
Targeting settings are worth mentioning too. This Digital Services Tax applies to those running Ads in the UK, Austria and Turkey. For Austria and Turkey the fee increases to 5%, so if you are wanting to avoid being stung you could always add these locations as exclusions from your campaigns.
Limited Search Terms Reporting
On the same week that Google announced this 2% charge, they also informed us about a rollout which involves limiting Search Terms reporting. For those of you that don’t know, Search Terms are essentially the keywords that people type in when your adverts are seen.
Google have stated that they are:
Now of course that is open to interpretation as it all depends on what they see as ‘significant’. It probably means that you will no longer be able to see search terms with one impression or click, which isn’t a huge issue.
However, as advertisers pay whenever a user clicks on an ad triggered by their query, this could have a real financial impact on businesses. What if there are several search terms each month which are draining your ad budget, but you aren’t able to see what those terms are? Keyword match types are going to become even more important moving forward I think.
Keep Monitoring Your Google Ad Campaigns
So as you can see, there are lots of big changes on the horizon for Google Ads, which are going to have a big impact on those advertising on the channel. The best bit of advice I can give you at the moment is to keep monitoring your Google Ads campaigns. If you can take the time to really refine your negative keyword lists now, before this limited search term reporting comes in, you will be in a much better position.