Effective Internet Marketing Strategy and Tactics Through Test

AdWords Search History Permutation – Short Form

Published on March 17th, 2008 by Jeremy Chatfield

Update

2009/02 I can no longer detect Search History Permutation using the diagnostic tests that I previously used – I believe that this is no longer operating, or it has become more subtle in its effects.

Original Article

Are you suffering from a lower CTR recently? Have your conversion rates declined? Have your impression rates declined, or suddenly boomed? I think I know why. Here’s a simple description of the problem that Google has caused. I’ve a longer article, with more of the background.

At some point (I don’t have an exact date and I’m still digging through client logs) Google changed the basis on which adverts are shown. Until this change, Google would look at what the user typed in a search query, and deliver adverts where the advertiser had selected a keyword that matched the search query. Google has not announced that they are now doing Search History Permutation.

After the introduction of the Search History Permutation, Google takes all the words in the previous search, and all the words in the current search, and jumbles them to make new search queries.

The result is that adverts mix relevant results and bizarre conjoined researches – even if the series of searches conducted by a user are related, the result of permutation can deliver completely irrelevant adverts.

This is not AdWords, as I’ve used it from 2004 to 2007. This is a different AdWords. It is less effective. It is more expensive to use. It is less under my control – I can’t find any simple way for advertisers to prevent appearing on irrelevant search queries.

US Vacation Search, after "Brazilian Tax Credit"

US Vacation Search Result, after Cheap Holiday search.

Look at these two search results clips. Both searches are for “US Vacation”. But the search before these was varied. Notice that Organic Search results are the same. Only paid search has changed – and it has changed so that the top position results are irrelevant. This decreases the CTR for what should have been the number one advert. It has pushed to lower positions, previously relevant adverts, off the first page – so for some advertisers, impression volumes will have crashed. The recruitment of irrelevant adverts means that *high bidding* adverts, will get increased impressions, as they will be dragged into irrelevant searches more frequently.

The general effect of this though, will be plummeting CTRs. It’s almost as if Google was spamming its own pages!

Summary

I believe that Google has fundamentally changed the nature of AdWords, without any contractual variation or notice. If so, this is not ethical behaviour by Google, and it might not be legal – I don’t know enough about US law to say – but it really, really sucks.

I believe that the change benefits Google – by having more high bidding advertisers in every auction.

I believe that the change does not benefit users.

Longer term, I believe that this damages the brand value of Google, by destroying the basic proposition that Google offered to search users – that Google would deliver the best page of search results. By delivering adverts from irrelevant searches, Google has reduced the value of the page, for advertisers and for users.

I have a *much* longer article, that covers all of this, in more detail. :(

"AdWords Search History Permutation – Short Form" was published on March 17th, 2008 and is listed in adwords, click fraud, google.

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AdWords Search History Permutation – Short Form: 6 Comments

  1. julia salmon wrote,

    my google search history shows searches I have never done (only i use this particular computer) – is this because of a similar thing to Search History Permutation

  2. Jeremy Chatfield wrote,

    Hi Julia – I don’t think so. I have no idea of the cause, but I’m pretty sure that search history permutation applies only to paid advertising. I’ve looked at my history and I don’t see synthetic searches when I know I have triggered inappropriate adverts.

  3. Phil Burton wrote,

    I have noticed some strange goings-on with my adwords account.

    I can set up a campaign and for the first couple of days see impressions in the 100,000-120,000 region, then after the first couple of days, this plummets to below 40,000 – this cannot possibly be changing search patterns, and its certainly nothing I’ve done because I left the account the same!

    Since seeing the impressions plummet, I have tried raising my bids, but I dont really want to do this because my CPC goes right up, and my total clicks for the day goes down because the budget is set.

    It seems like a no-win situation – I want a CPC of say 7p, in order to get 100+ clicks per day from my £20 budget. With the impressions at the initial level of 100,000, this happened, but with impressions down to 40,000, I only get around 30 clicks. My only choice therefore is to up my bids, but then my CPC goes up to around 18p, meaning my budget of £20 limits the performance.

    I must say, Google Adwords is a mystery to control and use effectively, it seems that you are better off stabbing in the dark and making changes just to make sure you’re a step ahead of google altering your level of impressions.

  4. Jeremy Chatfield wrote,

    Hi Phil,

    You’ve probably got several different effects going on here. I’m guessing that you are picking lots of relatively high volume keywords that have few advertisers? In which case your problem is almost certainly one of Click Through Rate. You say that you see 100,000 impressions and about 100 clicks – a CTR of 0.1%. That’s low.

    When you get a CTR down at the 0.1% range, then Google will reduce the Quality Score. As the Quality Score decreases, you’ll be shown on fewer and fewer searches. Get a low enough QS and you’ll disappear from search.

    Doing better will involve improving the CTR. You probably have adverts that aren’t a specific answer to the keyword. Sometimes DKI can help – but sometimes DKI can make an advert into nonsense…

    Anyway, focus on raising that CTR, ideally into the 2%+ range. At 0.1%, you will keep finding lower volumes. Look at it the other way… at 2% CTR, you need only one twentieth of the impressions :)

    Cheers, JeremyC.

  5. Phil Burton wrote,

    Hi Jeremy, thanks for the reply.

    The industry is motor sales – so it’s quite a competitive market. The search term “used cars” brings up dozens of sponsored links, so the low CTR on the high volume keywords has never really surprised me.

    Yesterday my average CTR was 0.42%.

    I have around 5 different campaigns running – one for a company called Motorhouse, and the other for the sister company called Motus.

    Theres 5 different campaigns because I find they perform better when you have one geographically targetted at the local area, and one at other areas – and to split the budget more evenly, otherwise the better performing ads and geographical areas would use up all the budget.

    Motorhouse, being the parent company, has the better performing ads, so i’ve had to split the campaigns up to prevent Motorhouse taking from Motus’ budget.

    On each campaign, I have over 1000 keywords, because of a) the amount of permutations of cars/model/derivative there are and b) to try and profit from the low volume keywords that competitors wont be using.

  6. Jeremy Chatfield wrote,

    Hi Phil – I have some moderately large automotive clients… I can’t comment in more detail. Nonetheless, high CTR is your friend… for any client in any sector.

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