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Bing adds Bing Chat answers to search results

Written on March 21, 2023 at 4:12 am, by admin

Microsoft Bing has added Bing Chat answers in the Bing Search results in place of some of the answer boxes. We knew this was coming, as Mikhail Parakhin, who leads up Bing Search and Bing Chat, suggested would happen a week ago and now it seems to be here.

What it looks like. Here is a screenshot of one of many queries that triggers the Bing Chat answer in Bing Search:

What happens. When you search in any browser in Bing and you see this Bing Chat box come up, you can see the first answer above. But then if you want to click on an additional question in the Chat box or type your own message in that Chat box, it will lead you into Bing Chat.

Bing Chat only works currently in Microsoft Edge and when you are invited into the beta. So your journey with Bing Chat may end there in Bing Search. But yes, Microsoft is showing you a snippet of the power of Bing Chat and hoping you try to get into the beta.

Why we care. Watching how search may adapt over time with the rollout of AI chat features is interesting and also important for publishers, content creators, marketers and SEOs. If Bing will replace featured snippet-like responses with Bing Chat responses, that might impact click-through rates and traffic to your websites.

Here is one example of this happening right now.

Hat tip to David Iwanow for sending this to me.

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PPC is a tough game – you have to accept it

Written on March 21, 2023 at 4:12 am, by admin

To get results from paid search, you’ll need to deliver better campaigns and increase your bids, which drives costs up.

However, increasing your bids won’t always mean more clicks. Eventually, you’ll reach a point where increased bids will only return little to no gain.

This is the law of diminishing returns at play. When running PPC campaigns, you are contending with this concept and many other factors outside your control.

In this article, we’ll explore the law of diminishing returns and various factors making paid search even more demanding today. This will help you set better expectations when assessing your PPC performance.

The law of diminishing returns

In economics, the law of diminishing returns states that as an organization increases its investment in a specific area, the rate of profit generated by that investment will eventually reach a point where it cannot continue to rise, assuming that all other variables remain constant. 

For this reason, additional investment in that area will result in a decreased rate of return. At a certain stage of expansion, the return on investment that applies to additional units produced (marginal ROI) reaches a negative value.

Beyond this point, the total outcome will start declining. Even if it remains positive, it is not as high as the maximum.

This principle highlights the importance of finding the optimal level of investment to maximize the overall profit. The “sweet spot” is where the marginal ROI changes from positive to negative, specifically where the marginal return equals zero.

As every resource is limited, we observe that the supply shows decreasing responsiveness to the price change, and eventually does not matter how high the price is. The supply won’t be higher. This phenomenon is described as the law of diminishing elasticity.

Price elasticity (E) measures the responsiveness of the demand or supply to a change in the price of a good or service. It is calculated as the percentage change in the quantity of a good or service demanded or supplied in response to a percentage change in its price. 

If the price elasticity is greater than one, the demand or supply is said to be elastic, meaning that a slight change in price leads to a relatively larger change in the demand or supply. If the price elasticity is less than one, the demand or supply is said to be inelastic. 

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Why are CPCs so high?

The laws of diminishing returns and elasticity apply to advertising.

To generate more traffic and conversions through PPC, you have to be more aggressive and competitive, increasing bids and, in turn, accepting higher conversion costs.

Increasing cost per click (CPC), however, leads to smaller and smaller increases in traffic. Eventually, you’ll reach a point when there’s no chance to get more traffic from a specific keyword (i.e., if the ad ranks #1 for all searches with 100% impression share). 

The law on diminishing returns is also reflected in the total budget. You can see how these costs can change in the Google Ads Performance Planner, as shown in the illustration below.

In most cases, the relationship will be fairly straightforward for campaigns that are not under or overinvested. To get 10% more traffic, you need to accept a ~10% higher conversion cost or a ~10% lower return on ad spend (ROAS).

This means that Google’s typical price elasticity of supply (the relative ratio of traffic increase to CPC increase) is 1.

Why is this the case? If a vendor increases their margin by 10% and loses 20% of their customers, this operation will result in a loss, and prices will likely be too high.

If a 10% increase in margin only causes 5% of customers to leave, the seller will increase their profits, and previous prices were too low.

The point at which the price is most optimal for the seller is where a 10% increase in margin results in a 10% decrease in the sales volume, making the change neutral for profits. In other words, the sales profits are highest if the price elasticity of demand is 1.

For Google, the sales margin virtually equals advertising revenue because the variable costs of the ad impression and click are negligible.

To maximize their profits, they should maintain a price elasticity of 1 – which explains how the auction algorithm works and why this regularity exists on the market.

Why does it cost so much?

In PPC, the natural consequence of the law of diminishing returns is a non-linear increase in budget to scale the campaign.

With elasticity E=1, which is typical for the market, doubling the traffic and sales volume is associated with doubling the CPC, resulting in a four-fold increase in budget.

At other levels of elasticity, these proportions will be different. But it is unrealistic to think that doubling the budget will lead to doubling sales in a given channel.

Marketing and business plans often reflect such expectations, only to fall through later. Expansion is costly, and the truth is even more bitter than this. 

Google and Meta are here to do business

The cost of acquiring an additional click (i.e., the marginal cost per click or CPC_m) is almost always higher than the actual CPC. By definition:

Also, by definition, the elasticity: 

Therefore:

It means that at E=1, buying additional clicks is twice more expensive than the current cost per click. The same calculations apply to Effective Revenue Share (ERS = Cost / Revenue)

Advertisers benefit from investing in advertising as long as the marginal cost is lower than their profit margin (i.e., they get additional profit through advertising).

When the marginal effective revenue share reaches ERS_m=1, advertising costs consume the entire revenue. Further, expansion will have negative marginal revenue and the total revenue will start to decrease. Thus, the campaign generates maximum total profit when:

That is:

As ROAS = 1/ERS = ROI + 1, this formula can be written as ROAS = 1 + 1/E or ROI = 1/E. 

A simple formula can define the areas of under and overinvestment and the optimum level.

If E = 1 (the typical market elasticity), the maximum total profits from advertising occur when ROI = 100% or ERS = 0.5. 

It means that, on average, advertisers increase their profits until they spend 50% of their profit (without considering fixed costs) on PPC ads. 

Of course, particular advertisers who advertise more or less aggressively may be in a different area of elasticity than E=1. Therefore, the ERS/ROAS/ROI maximizing advertiser profits will be higher or lower. 

For every $1 invested in Google search, U.S. companies earn $2. This is how Google wants to see it, but it also means that companies give half their profits to these tech giants.

There’s no way around it

The laws of economics and the free market put businesses in a situation where Google, Meta and other ad platforms get half their sales margin before fixed cost.

Whether we like it or not, these are the rules of advertising. Understanding how the system works makes it easier to create realistic expansion plans and avoid disappointments.

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This day in search marketing history: March 18

Written on March 18, 2023 at 10:06 pm, by admin

Google Business Profiles new emergency help attributes for Ukraine support

2022: Google also added hotel attributes to define if hotels offered support to those displaced from Ukraine.

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Brands, especially restaurants, need FAQs and ‘coronapages’ fast

2020: It was critical that precautions being taken were discoverable in search results.

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Video: Martha van Berkel talks about structured data

2020: Does adding schema help improve your search rankings? Google said no but…

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Google on the March 2019 core update: This is not the biggest update we’ve released

2019: Related: Early data on Google March 2019 Core Update show an interesting pattern

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Google Ads now makes reporting column recommendations

2019: With this update, Bid Strategy Type was no longer a required column.

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Waze conquers ‘digital dark zone’ with in-car, out-of-home ad coordination

2019: McDonald’s campaign showed drivers in-car ads that mirrored billboards.

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Google Image Search launches colored filter buttons

2016: After testing various combinations, Google launched new filter buttons in the image search results.

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Bing Ads testing Social Extensions: Link search ads to Facebook, Twitter, Instagram, Tumblr

2016: The ad extension was in beta in the U.S.

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Bing partners with US National Park Service for #FindYourPark photo contest

2016: The winning photo would be featured on Bing’s home page during National Park Week and used as Bing’s Facebook and Twitter cover photo in April.

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Search in Pics: Google Analytics With NASA, Google buffalo & Fiber office

2016: The latest images showing what people eat at the search engine companies, how they play, who they meet, where they speak, what toys they have and more.

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Yahoo Loses Market Share As Some Firefox Users Return To Google

2015: Google had become increasingly aggressive in trying to lure back users.

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EU Antitrust Chief Says Google Settlement Essentially Done

2014: Amid criticism from politicians and Google’s critics, EU antitrust chief Joaquín Almunia essentially said that Google’s antitrust settlement proposal was a done deal. 

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Bing Ads Starts Allowing Keyword Variations Once Flagged As Duplicate

2014: Advertisers were able to start including multiple versions of keywords through Bing Ads Editor and the Bing Ads Upload API.

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Yandex Buys Israeli Geo-Location Platform KitLocate

2014: The chief virtue of KitLocate was that it provided location to apps without using much power – unlike GPS or triangulation, which could drain mobile batteries.

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GetListed Tool Relaunches As Moz Local

2014: Agencies and business owners could use the tool to research where their listings appeared online, manage claiming and verification and listings submission.

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A Dilbert On Search Engine Keyword Research

2014: There was a fun search marketing-related Dilbert strip on the topic of doing and presenting your keyword research to your boss.

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Google Penalized One Article On BBC’s Web Site

2013: Google’s John Mueller: “We found unnatural links to an individual article, and took a granular action based on that.”

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Bing Webmaster Tools Adds Site Move Tool

2013: The tool let you move from one domain to another domain as well as from within a site; URLs to URLs.

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Google Goes Beyond Answers, Starts Guessing Release Dates

2011: Google added a one box even when it only had a “best guess” at the answer to a search.

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Yahoo’s AllTheWeb To Redirect To Yahoo Search April 4th

2011: AllTheWeb one of the search engines Yahoo acquired in 2003 to help build Yahoo Search, would sunset April 4, 2011.

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SEO Held Liable, Fined In Counterfeiting Case

2011: A website builder and SEO firm was held liable in federal court in a case in which it was accused of enabling the sale of counterfeit goods.

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Search In Pics: YouTube Socks, Yahoo Bowlers & Bing Armbands

2011: The latest images showing what people eat at the search engine companies, how they play, who they meet, where they speak, what toys they have, and more.

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Google Tests “Sponsored Map Icons”

2010: The Sponsored Map Icons were a new way to promote your business within Google Maps.

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Google Will Let Web Users Avoid Analytics Tracking

2010: The company said it would soon let web users opt-out of being tracked by its popular Google Analytics software.

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Google-Viacom Court Documents Out; Google Says Viacom ‘Secretly’ Uploaded Videos

2010: YouTube’s chief counsel accused Viacom of “continuously and secretly” putting its content on YouTube, and “deliberately” making the material look amateur.

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Google Updated Maps For Mobile For Android

2010: An updated interface and some feature changes to help improve usability.

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Google’s Matt Cutts On Keywords In The URL

2009: Cutts answers: “Does the position of keywords in the URL affect ranking?”

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Twitter Search: Not Your Friend If You Tweet Something Bad

2009: Be careful what you say in a public setting and use social media tools to help you, not hurt you.

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Financial Times Launches Newssift, A Business News Search Engine

2009: Newssift aimed to bring context and meaning that its creators said was missing from traditional keyword-based business news search engines.

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Google Maps Opens Up Editing To Everyone

2008: Users would now be able to edit any details about a business or location, or add new businesses, even if they weren’t the business owner.

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Yahoo Expects To Double Cash Flow In Three Years & Reaffirms 2008 Outlook

2008: Yahoo expected to double its operating cash flow in three years from $1.9 billion to $3.7 billion.

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Search Biz: Alibaba Gains, Google Loses, & Eric Schmidt Says Don’t Call Me Daddy Anymore

2008: China’s Alibaba.com, in which Yahoo was a significant minority shareholder, enjoyed a massive 340% gain in net profit tied to China’s fast-growing economy.

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SES NY 2008 Day Two Live Coverage Recap

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From Search Marketing Expo (SMX)

• SMX West 2020 Overtime: Creating great content, FAQs and how to navigate approval limitations
• How to optimize paid search and Amazon campaigns for seasonality success (SMX West 2020)
• 4 Mobile Search Trends Tackled At SMX West 2013

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Past contributions from Search Engine Land’s Subject Matter Experts (SMEs)

These columns are a snapshot in time and have not been updated since publishing, unless noted. Opinions expressed in these articles are those of the author and not necessarily Search Engine Land.

• 2022: 14 ways Google may evaluate E-A-T by Olaf Kopp
• 2019: Using insights to find new audiences to test for awareness campaigns by Joe Martinez
• 2016: Get up close with PPC KPIs to improve your performance by Matt Umbro
• 2016: Local SEO beyond the browser by Marcus Miller
• 2015: Quantifying The Mobile Revolution: Mobile Advertising Progress In 2014 by Matt Ackley
• 2015: The Essential In-Depth Overview Of PPC Bid Management by Frederick Vallaeys
• 2014: Turning Old Content Into New Links by Casie Gillette
• 2014: Which Is The Most “Generous” Search Engine To Local Businesses? by Myles Anderson
• 2013: Geographic Targeting In An Enhanced Campaign World by Brad Geddes
• 2013: The Most Common Problems With Local Business Listings by Andrew Shotland
• 2013: Top 10 Tool Features For Successful Enterprise SEO by Paul Bruemmer
• 2011: How To Analyze A/B Tests Using Google Analytics by Daniel Waisberg
• 2011: Billions Of Years Of Free SEM Insight Through Biomimicry by Josh Dreller
• 2011: 3 SEO Myths About Information Architecture by Shari Thurow
• 2010: Using Web Analytics For Paid Search Research by Josh Dreller
• 2010: 5 Keys For Creating Viral YouTube Titles by Drew Hubbard
• 2010: Research: The Key To SMB Knowledge by Debra Northart
• 2010: Anatomy Of A Google Snippet by Stephan Spencer
• 2010: Overlooked But Beneficial On-Page SEO Elements by Tony Soric
• 2009: Customer Retention Through Search Marketing by Shellie Foriska
• 2009: How To Prioritize Search Marketing Work At A Large Company by Duane Forrester

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< March 17 | Search Marketing History | March 19 >

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The power of programmatic advertising  by Cynthia Ramsaran

Written on March 16, 2023 at 4:03 pm, by admin

With so much uncertainty right now, one thing has remained constant: programmatic campaigns work. Programmatic is built for the open internet and provides a seamless cross-channel experience for consumers. Unparalleled targeting, customizable architecture, and advanced optimizations make programmatic an option you can rely on.

Register today for “The Power of Programmatic Advertising: Stay Relevant With This Reliable Tactic,” presented by Adtaxi.

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Click here to view more Search Engine Land webinars.

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Semrush ends 2022 with 95,000 customers, 35% revenue growth

Written on March 16, 2023 at 4:03 pm, by admin

Customer growth increased Semrush’s full-year revenue by 35% in 2022 to $254.3 million, up from 188.0 million in 2021. 

Semrush expects to break even or show a small profit in 2023. It lost $33.8 million in 2022.

The company is financially strong; cash and short-term investments totaled $237.5 million at the end of 2022. 

Customers. Semrush added 13,000 customers in 2022 and ended the year with 95,000 paying customers, up from 82,000 customers in 2021. Semrush customers who paid more than $10,000 annually grew by more than 50% year-on-year.

The company also reported its platform had more than 800,000 free active users, up more than 50% year-on-year, and saw “record levels of new customer registrations and trials.”

Employees. Semrush ended the year with more than 1,300 employees and more than 200 contractors.

The company also reported it has completed a successful relocation of about 600 employees who had been based in Russia, prior to the country’s invasion of Ukraine last year, to new office locations (Spain, the Netherlands, Germany, Armenia, Serbia, Cyprus, and the Czech Republic).

Why we care. These financial results from Semrush confirm there continues to be strong demand for SEO and SEO platforms. Also, the company is cash rich and expects to reach profitability next year. That means the 2022 losses don’t jeopardize the company’s ongoing operations. 

Only “minor fine-tuning” need to help Semrush customers be found in chat-based search. “The outputs of (chat-interface search) are actually very similar to what happens if you try to produce (a) featured snippet based on a couple of top articles,” is how Semrush president Eugene Levin responded to an analyst’s question about search engines transitioning to chat interfaces. He added:

• “So from a technical point of view, optimizing for this is very similar to optimizing for featured snippets, which [we have helped] people to do for a very long time. And actually, we’ve seen a lot of demand for those features and support of our tracking feature snippet, as well as proactive recommendations about how people can… be mentioned in those features snippets.”
• “At this point, we don’t know what the final implementation (of search results) is going to be. We have only seen a couple of examples being implemented their approach to this, which is, I think, very user-friendly.”

Dig deeper. Semrush Announces Fourth Quarter and Full Year 2022 Financial Results.

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Get the latest SEO trends and predictions for 2023 by Digital Marketing Depot

Written on March 16, 2023 at 4:03 pm, by admin

Download the 2023 SEO Trends & Predictions report from Conductor and get access to detailed data analysis and a comprehensive list of trends and predictions. With this report, you’ll be able to optimize your current (and future) SEO and content marketing strategies to maximize performance and achieve increased goals for 2023.

Get insider knowledge on top trends like the rising importance of visual search, identifying the role AI should play in your SEO workflows, and expanding search strategies beyond Google.

Don’t miss out on this invaluable resource to gain the edge with your SEO and content marketing strategies. Visit Digital Marketing Depot and get your copy today!

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5 new updates to Google AdSense Auto Ads

Written on March 16, 2023 at 4:03 pm, by admin

Google has implemented updates to the Auto ads settings panel, making it simpler to distinguish between various ad formats.

What’s new. There are five new changes to the auto ad settings panel.

• The first change involves categorizing the formats into two groups based on their behavior. The ‘Overlay formats’ group includes anchor, vignette, and side rail ads, which are placed over a page’s content without affecting its layout. The ‘In-page formats’ group comprises banner and multiplex ads, which are inserted within areas of a page based on the page’s layout and content.
• The previously named ‘in-page ads’ format is now known as ‘banner ads’ and is part of the ‘In-page formats’ group.
• The controls for banner ads and multiplex ads are now separate, eliminating the need to enable banner ads before multiplex ads.
• Each format now has its own unique icon for easy identification.
• There is now an ad gallery displaying examples of each format.

Release date. These updates will be accessible during your next visit to the Auto ads settings panel. For more information about Auto ads settings, please refer to the link provided.

Dig deeper. You can learn more about auto ads here.

Why we care. By categorizing them into two distinct groups and providing individual controls for each format, publishers can easily choose the ad type that best suits their needs without having to navigate through complex settings.

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The new Bing: No more waiting list?

Written on March 15, 2023 at 1:02 pm, by admin

Is the waiting list to test drive the new Bing gone? It sure looks that way. We were alerted to this development by a story on Windows Central.

Why we care. Many of us (including me!) have been waiting weeks to gain access to the new Bing. If you were in this group, fire up Microsoft Edge, make your way to Bing and sign in to see if you have access.

No more waiting. Multiple people were able to sign up and gain instant access to the new Bing. They weren’t added to a waitlist, according to Windows Central.

Also, many people who have been on the waitlist now have access.

No official confirmation from Microsoft. We have reached out to Microsoft to confirm and will update this story if we learn more.

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Microsoft Ads broad match modifier keywords now serving ad broad match

Written on March 15, 2023 at 1:02 pm, by admin

Starting on March 15, Microsoft Advertising will be changing the way broad match modifier (BMM) keywords are served for search ads.

What’s happening. Currently, BMM keywords serve as phrase match, but they will now begin to serve as broad match. This change will be rolled out gradually, and Microsoft Advertising expects to maintain stable performance. The company has been working to improve the algorithmic performance of broad match, and it expects this change to deliver high-quality results. Advertisers who have tested this new system have reported seeing an improvement in conversion volume while maintaining the cost per acquisition (CPA).

Updating your accounts. There is no need for advertisers to take any action at this point. Microsoft Advertising recommends that advertisers monitor their performance for at least two weeks before making any adjustments. This change will not impact bidding strategies or 3rd party bidding, and the company encourages advertisers to continue using autobidding just as they do today.

If advertisers do not want to serve this way, they can update their match types in the UI. However, Microsoft Advertising does not recommend this approach. If advertisers decide to change the match type, it is strongly advised that they make the changes in the UI to avoid creating new keyword IDs and losing historical data. It is also acceptable to leave the “+” when updating the match type, as the system will ignore it.

Dig deeper. You can learn more about BMM from the Microsoft Ads help documentation.

Why we care. This change could affect the way ads will be served on the Microsoft platform. Broad match modifier (BMM) keywords will now serve as broad match, which means that the keywords will match with a wider range of search queries. This change can impact the relevance and quality of the ads shown to users, as well as the cost and efficiency of their advertising campaigns.

However, Microsoft Advertising has indicated that this change is not expected to negatively impact performance and may even lead to improved conversion volume while maintaining CPA. Advertisers should monitor their campaigns’ performance closely after the change and make adjustments if necessary.

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Google releases March 2023 broad core update

Written on March 15, 2023 at 1:02 pm, by admin

Google is now rolling out the March 2023 broad core update.

This is the first broad core update of 2023. It has been just over six months since Google’s last broad core update – the September 2022 broad core update.

The announcement. Google announced this on Twitter and updated its search updates page:

• “Today we released the March 2023 core update. We’ll update our ranking release history page when the rollout is complete.”

The rollout may take up to two weeks to complete, Google said.

What to do if you are hit. Google has given advice on what to consider if you are negatively impacted by a core update in the past. There aren’t specific actions to take to recover, and in fact, a negative rankings impact may not signal anything is wrong with your pages.

However, Google has offered a list of questions to consider if your site is hit by a core update. Google said you can see a bit of a recovery between core updates but the biggest change you would see would be after another core update.

Why we care. Whenever Google updates its search ranking algorithms, it means that your site can do better or worse in the search results. Knowing when Google makes these updates gives us something to point to in order to understand if it was something you changed on your website or something Google changed with its ranking algorithm. Today, we know Google will be releasing a core ranking update, so keep an eye on your analytics and rankings over the next couple of weeks.

Product reviews update. As a reminder, the February 2023 product reviews update just finished rolling out, it started on Feb. 21 and ran for 14 days, ending on March 7. This was a significant update.

Previous core updates. The most recent previous core update was the September 2022 broad core update which was less impactful than previous core updates and finished on Sept. 26. The May 2022 broad core update was a significant and fast update.

We also had core updates prior including the November 2021 core update and prior to that was the July 2021 core update, before that it was the June 2021 core update and that update was slow to roll out but a big one.

Before that, we had the December 2020 core update, which was very big, bigger than the May 2020 core update, and that update was also big and broad and took a couple of weeks to fully roll out. Before that was the January 2020 core update, we had some analysis on that update over here.

The one prior to that was the September 2019 core update. That update felt weaker to many SEOs and webmasters, as many said it didn’t have as big of an impact as previous core updates.

You can read more about past Google updates here.

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