Catalyst POINt OF VIEW May 2016

GOOGlE aNNOUNCEs NEW PRODUCt FEatUREs aND aDWORDs REDEsIGNBACKGROUND

Google’s annual Performance Summit in San Francisco kicks off today, Tuesday May 24. During the summit, Google will be unveiling some new product features as well as showcasing its redesigned AdWords interface.

The theme of Google’s launches appears to be redesigning and rebuilding AdWords for a world in which the majority of consumers are now searching from a mobile device.

Google is breaking its new launches and changes into four areas:

• Intent+Mobile

• Intent+Local

• Intent+Audience

• Intent+Tools

INTENT + MOBILE

WithinIntent+Mobile,Googleisannouncing the full roll-out of Expanded Text Ads, Device Bid Adjustments and Responsive Display Ads.

EXPANDED TEXT ADS

What is new? Currently, Standard Text Ads consist of a headline of 25 characters, two description lines of 35 characterseachandadisplayURL.Overthe coming months, Google will phase Standard Text Ads out and replace them with Expanded Text Ads.

Expanded Text Ads (ETAs) will consist of two headlines of 30 characters each, a description line of 80 characters and up totwopathsinthedisplayURL(.com/examplepath1/examplepath2).NotethatthedisplayURLfieldwillberemoved,with the ad automatically displaying the domainfromthefinalURL.

How will this impact advertisers? The new ad format will provide nearly 50% more text space, including a more prominent headline for advertisers to highlight products and services. Google estimates that ETAs will give advertisers a 20% higher click-through-rate.

As well as preparing the new, longer ad copies for accounts, advertisers should set additional budget aside for the incremental paid clicks that will seemingly come from organic listings being demoted further down the search engine results page.

Launch date: Early Q3 2016.

DEVICE BID ADJUSTMENTS

What is new? Google introduced Enhanced Campaigns in July 2013 where a max. CPC is given for the desktop (which includes tablet) bids, and -100% to+300%bidadjustmentscanbesetformobile bids.

The Device Bid Adjustments change to AdWords is making the default bid device agnostic- advertisers will now decide

whether the desktop, mobile or tablet bid will be default and then set % bid adjustments for the other two remaining device types. With this change, Google is now allowing tablet only bid adjustments to be made (broken out from the desktop bid). The bid adjustment range will also beincreasedto-100%to+900%.

How will this impact advertisers? These changes give more control to advertisers. Advertisers will be able to bid separately for tablet clicks and they will be able to make higher bid adjustments between devices.

Moving the default bid value away from desktop to device agnostic is also a neat move from an AdWords housekeeping perspective.

Launch date: Q3 2016.

RESPONSIVE DISPLAY ADS

What is new? Responsive Display Ads will become the default ad unit on the Google DisplayNetwork(GDN),toreachusersacross text, image and native inventory. Text only ad submissions will be phased out.

Advertisers will upload an image, logo, headline and description and Google willarrangethemtofitontopages,orinads,acrosstheGDN.Theseadunitswillrespond to the design of the page, ad space or type of inventory offered by the publisher.

How will this impact advertisers? Google will have the creative assets from an advertiser to serve the best ad unit for any ad space, ultimately leading to higher CTRs.

Anothermajorbenefitofthischangeis that advertisers will have greater control over their ads. Currently, Google occasionallycombinesGDNtextadswith third party images. Moving forward, Google will have the creative assets to only serve an image submitted by the advertiser.

Similar to ETAs, advertisers (or their agencies) will need to resubmit creative fortheGDNandbepreparedforgreaterCTRs.

Launch date: Q3/ Q4 2016.

INTENT + LOCAL

Given that a third of mobile searches show some kind of location intent, Google is enhancing its local search advertising offering and, in turn, user experience.

Google is announcing Ads in Maps and Online-to-OfflineMeasurementwithinIntent+Local.

Ads in Maps (also referred to as Local Search Ads)

What is new?LocalAdswillnowbeserved within Google Maps as well as on Google Search. Advertisers will be able to promote information such as stock levels, store hours or other incentives to drive store visits.

Google is also testing more branded experiences with branded and promoted pins on Google Maps.

How will this impact advertisers? For brick and mortar advertisers, this presents another opportunity to drive customers to their locations. Advertisers will automatically show ads in the local results in Google Search and Google Maps, when the business has its Google My Business account in good health andLocationExtensionsenabled.Noadditional campaign setup is required, although with the additional exposure, advertisers should plan budget accordingly.

Launch date: Ongoing throughout 2016.

ONLINE-TO-OFFLINE MEASUREMENT

What is new? Through Google’s partnership with Eddystone Beacon, Google will leverage location signals to recognize when a user is in a store or a physical location, to enable store visits reporting. Google will also be able to offer more detailed in-store analytics reporting around what actions the users take once at the location.

How will this impact advertisers? This will givebrandsgreaterofflineperformancereporting, linked back to their online advertising investment.

Launch date: Ongoing throughout 2016, by Google invitation only.

INTENT + AUDIENCE

WithinIntent+Audience,Googleislaunching Cross-Exchange Buying on GDN,SimilarAudiencesinSearch,andDemographics in Search Ads.

Cross-Exchange Buying on GDN

What is new? Google is extending the reachofGDNremarketingcampaignsbygiving remarketing advertisers access to ad exchange inventory beyond Google’s network.

How will this impact advertisers? This willincreasethedistributionofGDNremarketing campaigns. Advertisers should consider this additional distribution when setting budgets. There will be no additional setup for advertisers-GDNremarketingcampaignswill automatically be eligible to show ads outside of the Google network.

Launch date: Already launched and ongoing with additional partners.

Similar Audiences in Search

What is new? Similar Audiences are createdbytakinganadvertiser’sRLSAlist and expanding to users that have searched for the same queries, but have not clicked on the advertiser’s paid search ad. Advertisers will be able to bid for these Similar Audiences using bid modifiers( justlikeRLSAs).

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How will this impact advertisers? Similar Audiences will aim to replicate the same higher conversion rates associated with RLSAaudiencesbyuncoveringlookalikesso advertisers should consider setting additional budget aside.

However, advertisers should closely test Similar Audiences as these lookalikes could include users that have seen the advertiser’s ad previously and not clicked on it for a reason.

Launch date: Currently in beta, full launch end of 2016.

Demographics in Search Ads

What is new? Advertisers will be able to tailor bids, creative and landing pages towards the highest value demographics (declared or inferred user demographic data).

How will this impact advertisers? Demographics in Search Ads will give advertisers greater control over who they are bidding for. Advertisers will now have the ability to pinpoint bid for the highest value demographics.

FormoreinformationonthisPOV,pleasecontactyourlocalteamor:

Kerry Curran

Senior Partner, Managing Director,

Marketing Integration

kerry.curran@groupm.com

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This also creates a tidy integration point with paid social and programmatic media buying.

Launch date: Currently in beta, full launch end of 2016.

INTENT + TOOLS

TheIntent+Toolsupdatesareaimedto equip advertisers with the tools for a multi-screenworld.TheIntent+ToolsupdatesareAdWordsNextandGoogleAnalytics 360 Suite.

AdWords Next

What is new? The AdWords web interface has been updated. The navigation structure has been improved towards key areas such as reporting, monitoring and optimization. There are improved account level snapshot views, allowing better insight visualization. Campaign creation steps will be more aligned to advertiser goals and marketing objectives.

How will this impact advertisers? Advertisers (and their agencies) should findthenewinterfacemoremodern,responsive and advertiser-centric.

Launch date: Advertisers will be migrated between Q3 2016 – Q1 2017.

Google Analytics 360 Suite

What is new? Google is bringing its six enterprise analytics products (Analytics 360, Tag Manager 360, Audience Center 360,Attribution360,Optimize360andData Studio 360) under a common brand.

How will this impact advertisers? This suite is aimed at Google enterprise clients, enabling them to connect data across the various Google advertising offerings.

Launch date: Currently being rolled out to Google’s existing Analytics Premium and Adometry customers. Wider roll-out imminent.

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