On July 26, 2016, Google unveiled an update that introduced expanded text ads. The new ad format promised to transform the performance of its text ads, quoting several customers with CTR performance improvements of 79% to more than 100%.
|Standard text ad||Expanded text ad|
On Friday, February 24, 2017, Accuracast released their analysis of the actual results of over 2.7 million searches and 82,000 clicks across multiple industries including finance, travel, real estate, and eCommerce. The analysis included data collected from July 26 2016 to January 6 2017, showing mixed results:
What our findings show is that the new Expanded Ad format has led to a drop in average cost per click (CPC), a lowering of the average cost per acquisition (CPA), and an increase in total number of clicks. However, it has not led to the significant CTR improvement claimed by Google. CTR results were mixed – having gone up for some and slightly down for others.
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