2022 PPC Year in Review

2022 was another year full of change in the PPC world!

It’s easy to forget just how much has happened with the fast pace that our industry moves at. Here’s what stood out to Knucklepuck as we navigated an ever-changing landscape for our clients.

The (Continued) Shift to Automation

One of the main trends that stood out to us this year was a bigger shift to automation on Google Ads. Google has been pushing automated bidding, tactics, etc. for years now, so this isn’t exactly a new development.

But 2022 just felt different.

For starters, Performance Max became available to all advertisers, and Google announced that it would subsequently replace popular campaign types (like Local & Smart Shopping) in the very near future.

• This might not have been a huge deal for most B2B advertisers, but it certainly impacted the B2C and eCommerce spaces. I also suspect that more campaign types will continue to be lumped into the PMax umbrella going forward (yay…).
• That said, while PMax may not have been the tool that advertisers asked for, it’s the tool we got. And the initial results haven’t been terrible for some verticals, so it’s worth testing in 2023.

Performance Max campaign results from Knucklepuck’s 2022 test

Another major change was the sunset of Expanded Text Ads. Gone are the days that advertisers can easily control ad copy with 3 headlines and 2 descriptions, all in the specified order that we want. Now, we live in the world of Responsive Search Ads.

• In theory, RSAs are useful when testing new messaging and language in your ad copy. There is some truth to this, however, it’s difficult to understand the difference in performance between specific headlines and descriptions without data for clicks or clickthrough rate.
  • In my opinion, this is a glaring issue, and it’s really the only thing that stands in the way of RSAs being a great tool (instead of just a good tool).
• Pinning headlines and descriptions is a decent workaround for this issue, but it’s an extra step in an already tedious process of creating and uploading ads.
• Losing ETAs has also resulted in new processes for analyzing ad copy. Additionally, it’s changed the way that we manage expectations and help clients understand our strategies.

Using RSAs to create “Mock ETAs”

Lastly, 2022 seemed to be the year that advertisers collectively, and reluctantly, accepted that there is no escaping automated bidding. This could be due to the fact that, after years of machine learning, the algorithms are finally starting to deliver solid results.

• Knucklepuck has tested and seen these results in our own accounts. But it’s important to note that the learning periods and performance still vary widely across different clients and industries. And in some cases, Manual CPC bidding simply performs better.
• While we used to be very hesitant to use automated bidding in any capacity, our mindset has shifted. However, it hasn’t dramatically changed how we approach our accounts initially.
  • We still recommend starting a campaign with Manual (or Enhanced) CPC bidding. This gives us control at the beginning of an initiative, and allows us to get a sense of the competitive landscape, costs, volume, etc.
  • From there, we assess whether or not a switch to automated bidding is warranted. We can then test the automated strategy more intentionally, so that we maintain a feeling of control but also lean into the benefits of automation.
  • We have found the most success using Maximize Conversions, as most of our clients are focused on lead generation.

The Importance of Creative & Video

Another major trend was the importance of adopting videos and images wherever you can. This includes having your assets be as relevant and up to date as possible.

Again, this is not necessarily a new development. But with the rise of more visual platforms (more on that later), Google Ads felt the need to respond.

They did so with the addition of more visual ad assets (formerly known as ad extensions) for Search campaigns. Image Assets became more widely available, and I wouldn’t be surprised to see Video Assets launched across all accounts in 2023.

At Google Marketing Live, there was also a heavy emphasis on YouTube Shorts. My prediction for next year is that this will become an even more important channel within video campaigns as Google reacts to TikTok’s dominance in short-form video.

Speaking of TikTok – if you want to see success on this platform, the #1 priority should be creative. The same goes for Meta Ads (i.e., Facebook and Instagram), LinkedIn Ads, and really any paid social campaign.

• Users want to see fresh, engaging content. They do not want the same image or video that you’ve been reusing on and off for the past year across different channels.
• This has always been a recommended best practice, but it really came to the forefront this year because of TikTok’s rise to power.

And that brings us to the third major trend…

The Rise of Alternative Platforms

After years of digital marketing dominance, the Google and Meta duopoly appears to be in decline.

For Meta, it could be due to the huge blow they were dealt when iOS 14.5 was released, which allowed users to opt out of app tracking. For Google Ads, maybe it’s partly due to rising costs (CPCs, CPMs, etc.).

The biggest reason though, can likely be attributed to the rise of new ad platforms – particularly TikTok and Amazon.

• According to one of Google’s senior vice presidents, roughly 40% of people between 18 and 24 use TikTok or Instagram to start their search journey.
• Similarly, 55% of searches for a product (i.e., shopping) now begin on Amazon.
• This has massive implications for Google Search and Shopping campaigns, as well as TikTok and Amazon advertising going forward. Advertisers, especially for B2C and eCommerce companies, cannot afford to ignore these channels in 2023.

Other ad platforms have taken big strides in the past year as well:

• LinkedIn revamped their interface to make it easier to use, and Microsoft Advertising might finally be starting to let advertisers access some LinkedIn data within their platform.
  • During a time when it feels like Google ignores us, this is welcome news to B2B advertisers.
• Reddit continues to expand their offerings, and has an easy-to-use platform with great support. I also believe they have the potential to surpass Meta’s ability to target specific communities. Subreddit targeting can reach highly engaged users for almost any topic or interest.
• Apple expanded their ad inventory as well, which is especially relevant if your client/organization wants to promote an app. I expect Apple to continue adding new placements, formats, etc. across their network as well, and this will be an important company to watch in 2023.

Summary

We saw a number of major changes and trends in 2022, particularly in automation, creative, and new platforms. We’re (cautiously) excited about what’s to come in 2023!

Resources

• Duopoly Done: Google and Meta Now Take in Less Than Half the Internet’s Ad Dollars
• Google exec suggests Instagram and TikTok are eating into Google’s core products, Search and Maps
• Apple puts more ads in the iPhone’s App Store