How Google Search’s Generative Experience affects advertising

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The impact of Google’s Search Genative Experience on advertising within Google’s SERPs has been explored in a new study.

Research by SEO platform SE Ranking has shown that:

  • Regardless of the presence of SGE fragments, advertisements appear more often at the bottom of search results.
  • Ads at the top of the SERP are more likely to accompany SGE snippets than store ads (carousels).
  • Shopping ads (carousels) usually appear above the SGE fragment.
  • Niches like fashion and beauty, and e-commerce and retail are more likely to see store ads.

Why we care. Understanding the impact SGE has on advertising in Google SERPs is crucial for businesses and marketers so they can make data-driven decisions for more effective marketing.

The study. SE Ranking examined 100,000 keywords across 20 niches, each with different search intent and volumes. The analysis provided insight into how often Google serves AI-generated responses, length of content in the Search Genative Experience (SGE), linking patterns, variations between niches and ad placement.

The findings. When SGE fragments with text were present (18,455), the study showed:

  • Ads appeared at the top 4,280 times (23.19%).
  • Ads appeared at the bottom 6,499 times (35.21%).
  • Shopping ads appeared 2,660 times (14.41%) in the form of carousels (as shown in the screenshot below).
  • This means that in 5,016 cases (27.17%) no advertisement accompanied the SGE fragments with text.
SE ranking SGE researchSE ranking SGE research

Ad type. The study also looked at different ad types in combination with text-based SGE snippets. Researchers found:

  • Both store ads and ads at the top of the SERP accompanied the SGE responses in 1,018 cases.
  • In 2,660 cases, Shopping ads appeared next to text-based SGE snippets.
  • In 3,262 cases, ads only appeared at the top of the SERP next to text-based SGE snippets.

Carousel shopping ads. Carousel shopping ads can be placed above, below, or in the sidebar of the SGE clip.

Ad placement. The study also looked at the most popular location for shopping ads in the SGE SERP. The data shows a clear preference for Shopping ads over the SGE snippet:

  • Shopping ads appeared above the SGE snippet 2,969 times (80.72%).
  • In 502 cases (13.65%), shopping advertisements were placed under the SGE fragment.
  • Shopping ads appeared in the sidebar 207 times (5.63%), making this placement the least common.

What SE Ranking says. A spokesperson for SE Ranking said in a statement:

  • “The most important conclusion here is that we really need to stay informed. Changes seem to happen almost every day.”
  • “This becomes even clearer when we compare these results with a previous study we conducted. When we got our first round of SGE research By the end of 2023, results showed that only about 4% of keywords failed to trigger an SGE snippet. This time, 12.3% of keywords did not yield an SGE response.”
  • “While this study has shed some light on Google’s AI-powered responses, much remains uncertain. We are closely monitoring the latest developments from SGE and conducting more research to stay informed.”

What Google says. Philipp Schindler, SVP and CBO, Google, said this during Alphabet’s 2023 Q4 revenue calling:

  • “As we shared last quarter, ads will continue to play an important role in the new search experience, and we will continue to experiment with new formats native to SGE.”
  • “SGE creates new opportunities for us to improve people’s commerce journey by showing relevant ads next to search results.”
  • “We also found that people find ads above or below the AI-powered feed useful because they provide useful options that help people take action and connect with businesses.”

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Deep dive. Read the SE rankings report completely for more information.

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