PPC Trends 2016: 24 Expert Predictions On Paid Search, Display & Retargeting

The key PPC trends brands need to know for winning paid media strategies in 2016.

Danny Goodwin By Danny Goodwin from Momentology. Join the discussion » 0 comments

As another exciting year of PPC marketing nears its end, it’s time to look toward 2016. As you prepare your PPC marketing strategy, here are some key areas of focus for brands and businesses to succeed with paid search, display, and retargeting in 2016.

Clearly, mobile was a big PPC trend for 2015 that couldn’t be ignored, and continues to be – because consumers are mobile. But as the New Year approaches, one PPC trend is clear: 2016 will be more about targeting the right people at key moments of the consumer journey.

The shift from targeting keywords to targeting people and intent is getting increasingly precise and sophisticated, thanks to tools such as Customer Match and Remarketing Lists for Search Ads (RLSA).

Technology is also getting better – machine learning and artificial intelligence might just give your brand the edge in ad copy and landing pages.

Another key for PPC success will come from combining and making sense of the insane amounts of data to truly understand the consumer journey and then use those insights to drive more revenue.

This year, Momentology has collected insights from 24 PPC experts:

Here are the PPC trends you need to know for 2016.

Tim Ash, CEO of SiteTuners

Tim AshMobile conversion will be key. Many people are using their phones for Internet browsing and research. If they click on your ad and it is not mobile optimized, you will lose that impatient and kinetic visitor (probably forever).

Make sure that you do not simply create a “responsive lite” version of your desktop landing page – rearranging the content into a single column and resizing the text to be more readable. Mobile landing pages require a clean-sheet approach, and often very different calls to action.

Also consider the fact that you may not have a landing page, and optimize your call-center experience for click-to-call mobile visitors.

Laura Collins, PPC Team Leader, Periscopix

Laura CollinsIn 2016, audience targeting will become more important than ever for PPC marketers. In the last couple of years we’ve already seen a noticeable shift in focus from keywords to audiences, but the recent release of Customer Match by Google will revolutionize the way we’re able to communicate with our users.

We can finally tap into a wealth of customer information that’s been locked away in CRM databases for years to create truly bespoke, targeted campaigns.

Search campaigns will be freed from the shackles of the 180 day membership duration for RLSA audiences, bringing a host of opportunities for seasonal products or subscription-based services. We’ll be able to segment audiences in ways that simply weren’t possible before.

Our customers may be living an increasing proportion of their lives online, but what they’re doing in the offline world is just as important for determining their interests and potential future shopping behaviors. In 2016 Customer Match will play a pivotal role in bridging the gap from offline to online, getting us closer to our audience than ever before.

Bryan Eisenberg, Founder & CMO, IdealSpot

Bryan Eisenberg2016 is going to the year where we begin to see brands use machine learning or artificial intelligence to enhance their ads, landing pages, and funnel communications.

I am seeing companies like PhraseTech (A.I. rewrites retailer’s product page copy) and Persado (A.I. writes display ad copy, emails, SMS, etc.). Companies like PhraseTech will allow brands to compete on factors no one could manually.

They will be able to produce at scale, fresh (changed frequently), relevant and personalized product copy that no team of humans could ever do. We all know how the search engines love fresh content on the organic side, what makes most of think it does not impact Quality Scores on the paid side?

It is time to welcome our machine assistants.

Justin Freid, Vice President of Emerging Media, CMI

Justin FreidThere is no doubt that digital advertising received some feedback this year that we are not doing our job correctly. This rise in ad blocking should make us, as marketers, shift our focus from promoting a brand to providing our audiences with a solution or answer.

As more data becomes available from a myriad of sources, we’ll continue to mold our campaigns and responses to the individual. From wearables and social demographic data to your search history, the amount of information advertisers have about a specific individual is astounding and will be utilized to create a truly customized experience.

Imagine a scenario where you are walking down the street, through blue tooth near field technology, a digital billboard accesses your recent search history, your body temperature and steps walked today from your smart watch and phone. Through this information, the automated system can determine you have a cold with a fever. The digital billboard puts your impression up for auction into a programmatic trading deck, having the likes of CVS, Walgreens and other pharmacies bid for your impression. Based on your location, CVS determines they have a location two blocks from where you are located. They determine you are a target worth paying for and you are shown an ad, with cold medicine and directions to their location on the digital billboard.

This is just one example of how I see the way ads are served changing over the next year. Huge, annoying rising star ads or mobile screen takeovers will begin to stop, and advertisers will begin focusing on delivering a solution to the consumers question or need.

John Gagnon, Bing Ads Evangelist, Microsoft

John GagnonIn 2016, we’ll see interesting trends in PPC due to the rise of personal assistants and machine learning becoming more easily available.

Expect more searches outside the box in 2016. Think about Siri, Google Now, or Cortana for a moment. As personal assistants grow in popularity, it creates a new way for people searching outside the browser.

These personals assistants are baked right into the latest operating systems. Cortana is already on 110 million Windows 10 devices (with more than a billion queries) while Google Now is on a huge number of Android devices – the search trend will continue!

The volume of data is exploding for marketers to analyze and target from! Pioneering digital marketers are now using Amazon and Microsoft Azure Machine Learning services to begin to uncover their most valuable advertising segments in a sea of data. There is a big opportunity to get ahead of the pack in 2016.

Daniel Gilbert, Founder, Brainlabs

Daniel GilbertFor me, this is the year that people-based marketing will explode. Especially in paid search, where Google have introduced the ability to upload email addresses to create audience targets. This is probably the biggest single change since the dawn of AdWords – and we’ve already seen game-changing results by building strategies off the back of this new capability.

With Atlas becoming more accessible as 2016 progresses, I imagine we’ll see similar improvements in the Programmatic space – which is currently broken by cross-device, cross-browser movement.

Finally, when it comes to automation I expect to see the top 5 percent of the market investing in custom-driven algorithms rather than relying on third-party bid management technology. In the same way that no world class ecommerce retailer uses out-of-the-box software like Shopify (a superb product for mid-market), I think advertisers will start to see how one algorithm or tech suite that’s designed and built for them, rather than the masses, can revolutionize their PPC efforts.

Zvika Goldstein, VP of Product Management, Kenshoo

Zvika GoldsteinIn 2016, marketers will seek to better align their mobile app marketing strategies with key corporate business goals by leveraging audience data and automation to maximize customer lifetime value and exceed revenue goals.

The introduction of CRM-based audiences on Google (customer match) together with the progress Google made in RLSA open more opportunities for marketers to strategize around audiences more than before. The ability to connect these audiences between the publishers will bring new efficiencies and optimization capabilities that haven’t been explored previously.

Marketers will need stronger automation tools to maximize opportunities as a growing number of publishers should deliver robust results, increasing the size and complexity of campaign portfolios. In addition, emerging ad types like Dynamic Search Ads will bring new opportunities to grow advertisers’ footprint. On top of which, strong cross-device measurement capabilities will inform mobile bid adjustments, which will be key for driving success.

By leveraging audience data and automation, marketers’ app install efforts and continued engagement thereafter can be optimized in concert to achieve singular marketing goals and maximize the lifetime value of a customer.

Andrew Goodman, President, Page Zero Media

Andrew GoodmanHere are a couple of trends I’m seeing.

1. ‘Black Box Automation’

Increasingly, PPC platforms offer tempting forms of “black box automation,” from full-on bid optimization to “lite versions” such as Enhanced CPC. It poses a challenge for PPC managers, not because their jobs will become obsolete, but because they truly need to come to grips with when it’s appropriate to use an automation tool, and when it is not.

Managers will also need to understand which of their own analysis, strategy, and hands-on management plays nicely with these black boxes. I still tend to favor a hybrid approach that uses some of these baked-in tools, and eschews others.

If you have strong opinions about how you’d apportion clicks across different match types and forms of intent, and are likely to see better Quality Scores and ROI because of your deeper understanding of how your ad groups function, then continue being a control freak! Conversion Optimizer will have you standing idly by, potentially, as too many impressions and clicks are being mapped to your broader keywords. “Just trust us,” right?

2. More Tools to Streamline the PLA Process

Speaking of things that scale, the other big story in many accounts, in terms of spend, is shopping feeds (PLAs). Remember a few years back when there were all these active “comparison shopping engines,” and as a result, “feed specialist” companies were popping up? It feels like we’re coming back to that place again.

Even if you have to consider only Google, Bing, and Amazon, that’s reason enough to go out and seek solutions to streamline the process. I’m hoping we’ll see a more active and robust ecosystem of third-party tool providers in this area. The few that are out there now seem to be on the pricey side, cherry-picking the largest accounts. A tier below that, we need to see more solutions.

Pauline Jakober, Founder & CEO, Group Twenty Seven

Pauline JakoberIn 2016, we’ll see a final push to convert all landing pages and websites to mobile-friendly versions. We’ve been talking about mobile for years, but transitioning to mobile-friendly isn’t easy (or cheap) when you have large, complex websites that support multiple languages.

Many sites started this process in 2015. But hopefully, in 2016, we can finally put this one to bed!

In addition, I predict that video ads will be the next major ad format to display on Google search results pages. We’ve seen a few clues to support this, the main clue being that in 2015, Google migrated TrueView ads to the main AdWords interface, making it easier to manage these types of campaigns and budgets.

Jennifer Johnstone, Associate Director of Biddable Media, Piston

Jennifer JohnstoneThe most notable trends we’re going to see in paid search for large advertisers in 2016 are more meaningful insights into the full customer journey through micro-conversions, and a better understanding of cross-device and online to offline activity.

In 2016, advertisers are going to maximize their paid search efforts to gather more insights than just sales and leads. Whether in their accounts or through another source, advertisers are going to start tracking more micro-conversion actions.

Doing so will give advertisers the ability to better understand which “micro-moments” or signals ultimately lead up to a conversion action. Understanding which signals are more valuable will allow them to take a second look at campaigns that may appear to drive poor performance on the surface, when they are actually driving many of the micro-moments that assist later in customer journey.

Cross-device conversions will also play a bigger role in how advertisers manage their campaigns in 2016.

In 2015, we were able to implement user-level tracking through data that we supplied and subsequently produce cross-device reporting. Now that we’ve compiled our 2015 cross-device data, it’s time to start analyzing to understand how the customer journey takes place with multiple sessions and across multiple devices. Organizing this data will allow us to see how touch-points that may appear unrelated are actually connected.

Also in 2016, we expect more of this cross-device information to be shared by our analytics providers instead of relying on our developers to make that inference.

The online to offline gap has been bridged quite a bit in 2015 and this will continue into 2016. Through many channels, it’s been via beacons, coupon downloads and the like. However, Google is also working on understanding foot traffic driven by online media through their new Store Visits beta.

Though still early to see immediate value, the beta will estimate store visits driven by our paid search efforts using anonymous, aggregated user data and extrapolating it to a broader population. With other metrics factored in manually, like average order value and in-store conversion rate, we may start to be able to produce more refined assumptions about the impact our digital advertising dollars have on our brick and mortar stores.

Larry Kim, Founder, WordStream

Larry KimPPC in 2016 will be increasingly:

  • People-centric: Targeting ads to people (i.e., demographics, behaviors, interests and actual identity) vs. just targeting search keywords.
  • Brand-focused: We need to be more open to using PPC for more than just direct response marketing – but also as a valuable tool to build up your brand and create new demand for your products using the latest video, email, and social ads.
  • Mobile: There’s still a huge between how people access the Internet and where PPC budgets are being spent – this gap will need to close.

John Lee, Managing Partner, Clix Marketing

John LeeData. Big data, small data, first-party data, third-party data… you name it. Of the many trends to follow in 2016, how digital advertisers leverage data should be at or near the top of the list.

What about data? The myriad ways advertisers use first-party data really took hold in 2015. Facebook and Twitter perfected their custom/tailored audience features. Google added their weight to the fight with the release of Customer Match in September. In 2016, first-party data will take front seat in many advertisers’ targeting strategies and the ad platforms will continue to innovate how we apply that data.

On the flip-side, the discussion of ad blocking, cookie usage and tracking on the Internet will only get louder. I just read about a new (free) app by Mozilla that will block ads, cookies and more for iOS devices. Google AdWords just announced their new “smart goals” which count conversions not with cookies, but machine learning instead. Digital advertisers rely on data to optimize and scale campaigns, the lack there of is a potential trend to keep a very close eye on!

Melissa Mackey, Search Supervisor, gyro

Melissa MackeyUp until now, there has been a dichotomy of search options available to businesses: targeting by intent (keyword) with little to no idea of who the user is; or targeting by audience (social, remarketing) with no idea of the intent of the user.

Remarketing lists for search ads changed all that, and in 2016 we’ll see RLSA become an integral part of the advertiser arsenal. With the launch of Bing Ads retargeting, advertisers will be taking advantage of RLSA in the majority of their PPC campaigns.

Social PPC will also continue to grow with the advent of custom audiences on Facebook and Twitter, enabling advertisers to communicate with their customers and prospects across multiple online touchpoints.

Cross-device tracking and attribution will also become more important. To truly utilize RLSA to the fullest, it’s critical to track users across devices. Tracking technology will become easier to implement, and more businesses will realize the benefits of cross-device tracking.

Elizabeth Marsten, Director of Paid Search, CommerceHub

Elizabeth MarstenFor 2016, smart brands and businesses should be taking an extra hard look at their attribution models across advertising types and start getting comfortable with being flexible in what is already a rapidly changing market.

It’s really hard to leave last click behind, I get it and this isn’t getting solved in 2016 alone. We’ve built so much on last click around revenue targets, ad spend and employee incentives; but as more platforms and advertising types enter the market and we strive to utilize those tools to reach individual audiences at the right time, we have to also accept that more than one touch point is going to occur and giving those touch points credit has to happen.

Start thinking about CPA targets not just on “PPC” but by channel or platform (Google, Bing, Yahoo), PPC ad type (text, shopping, remarketing, display), channel type (social, vertical specific search, partner networks), and on an assist basis as well.

Daniel Morris, Director of Product Marketing, Marin Software

Daniel MorrisOver the past several years, consumers have shifted towards using multiple devices in their buying process along the path to conversion, creating a complex, fragmented environment for advertisers trying to reach customers with strong purchase intent.

As an industry, we’ve gotten better at tackling this problem through deterministic and probabilistic matching across devices. However, with the proliferation of connected devices (commonly referred to as the “Internet of Things”) the opportunities for understanding customer needs and intentions though signals captured on ever day devices will become increasingly prevalent for advertisers.

Imagine a world where we can understand when a customer is in need of a new household cleaning product or has an issue with an electronics product based on signals we can ascertain from the products themselves. Advertisers will be able to fulfill this demand immediately without the customer lifting a finger.

This is the way the industry is moving, and the way that consumer purchase behavior is trending – going beyond cross-device marketing and thinking more along the lines of “cross-everywhere” in terms of how we understand and engage audiences.

However, along with the benefits of the growth and advancements of connected devices come challenges as well. How will advertisers aggregate, analyze and utilize the universe of customer intent signals that are amassed through the IoT? The advertisers that invest in technology focused on solving these problems today will ultimately be the ones getting a leg up on the competition down the road as this type of marketing becomes more commonplace.

Christi Olson, Founder, ISEM Consulting

Christi OlsonOne of the big trends in 2016 will be the continued shift from thinking about paid search in terms of targeting keywords to thinking about audience-based marketing that focuses on the consumer and consumer intent. I see a convergence in expertise and skills of how audiences are used across other channels like paid social and programmatic display coming into paid search allowing us to develop highly targeted campaigns that are relevant to the consumers.

An example of this could be developing RLSA campaigns to target specific audiences reached via paid social campaigns and then customizing the message and landing page for those specific users. It’s thinking outside of search and creating holistic marketing programs to meet a specific consumer need. The use of audiences and email lists will open up a whole new realm of possibilities in paid search.

Diane Pease, Inbound Marketing Manager, Cisco

Diane Pease2016 will be the year of behavior targeted advertising. The growing marketing focus is creating a personalized customer journey.

It’s not B2B or B2C anymore. Marketing is about the B2Me experience. It’s important to reach customers not only where and when they are searching, but providing them with a personal experience.

The growth of data management platforms such as BlueKai are giving companies the ability to do just that. It creates the ability to get in-depth knowledge of current customer online attributes and behaviors. This in turn helps determine potential audiences through lookalike modeling.

DMPs also allow the ability to send consistent messaging to all marketing channels. Knowing your customer’s online behavior is the key to being successful in the coming year.

Marc Poirier, CEO & Co-Founder, Acquisio

Marc PoirierConsidering the limited commercial success of the Windows Phone, Bing’s short term success in mobile greatly depends on their ability to replace Google as the default search engine in the iPhone’s Safari browser. There are rumors that the agreement between Apple and Google could end shortly, if this is true, Microsoft and Apple could potentially come to an agreement which would change the landscape of search and put Bing in position to play a very meaningful role in mobile search for years to come.

In order to be ready for this potentially dramatic change, which could easily mean a 15 to 25 percent drop in paid search traffic for those who only use AdWords, marketers will need to improve their ability to work with Google AdWords and Bing Ads at the same time, not only when it’s time to create new assets, but also on a day-to-day basis, as they will need to make sure that both accounts are kept in sync, and that they can allocate money effectively where it will be best utilized.

This will require increased discipline from marketers, and smart usage of technology. Some of the tools that are available are the Bing Ads “Import from Google AdWords” tool, also some of the third party bid management platforms now have the ability to keep Bing Ads and AdWords accounts “in-sync” to avoid having to do everything twice.

Doing this not only prevents a potential loss of sales, but also allows marketers to allocate their money more intelligently to the best performing campaigns, regardless of what ad platform they reside on.

Lisa Raehsler, Founder, Big Click Co.

Lisa RaehslerPaid search and PPC is moving away from the keyword being king.

We have come to learn keyword searches are only one step on the conversion path. Multiple touchpoints contribute to the success of a most businesses or brands.

This makes reaching the right audience in the right moment more about online behavior than a simple keyword search.

Advertisers are beginning to embrace this concept and are seeing great results.

In 2016, PPC will continue to evolve into a behavioral customer journey where strategies and campaigns will be developed around the sales funnel and multiple touchpoints. Integration across devices will be critical to growth: mobile, smart homes, smart TVs, wearables, app search, and virtual assistants like Amazon Echo.

Wherever there is a question, problem to solve, or product need will be an opportunity to sponsor those results and be present to the consumer at the right moment.

Zack Schroll, Director of Marketing, Hanapin Marketing

Zachary SchrollIf you’re responsible for advertising budgets and not taking the necessary steps to address the creation of a personalized user experience based on data, you are in for a long year. 2016 will be the year that smart businesses learn to leverage all of their data more strategically, to create high value target audiences and customized messaging. Those that do so successfully will reap the benefits to their bottom line, and others will try and play catch up.

Traditional PPC or paid search will no longer sit in a silo. Businesses will roll Programmatic display into their PPC ecosystem. Combining the vast amount of data from first party data sources, social, search, and DMPs will allow businesses to learn, more than ever, about who their audiences truly are. Brands will then be able to leverage this data to dynamically create and serve ads based on individual characteristics at scale.

Our recently released annual State of PPC report also found that both advertisers at agencies and brands agree social advertising and conversion rate optimization (now a staple for our industry) are considered the two most important aspects of PPC for 2016. As consumer behaviors continue to shift, desktop impressions shrink, and CPC’s rise, brands must tap into additional channels such as social and leverage smarter targeting options being rolled out by Google and Bing, to stay relevant.

The industry continues to move fast; successful brands will need to find the right partners to help them navigate all the changes and new technologies available.

David Szetela, VP of Search Marketing Operations, Bruce Clay Inc.

David SzetelaLast year I predicted that in 2015 mobile searches would outnumber searches from any other device. I also predicted that many advertisers would get more impressions and clicks from display advertising compared to search advertising.

The first prediction was right on the money; Google recently announced that mobile searches have outnumbered non-mobile ones. In 2016 we’ll see even more growth of mobile’s share. Some advice for advertisers:

  • Local advertisers should add keywords that include the ubiquitous “near me.”
  • Companies of all sizes will maximize calls by making sure that call centers are open 24/7. At least as important: operators should be fully trained to maximize quality leads.
  • Even if you need to divert resources and spend extra time and money, create a site that is a delight to use by mobile visitors. Most responsive sites aren’t mobile-friendly enough to maximize calls and leads.
  • Create customized ads for mobile. Frequently long headlines and description lines are truncated and unreadable. Tweak the designs of your image ads, too.
  • Make sure you’re using all ad extensions possible – including the relatively-new structured snippets. You can be one of only two ads at the top of the mobile SERPs!

Regarding display ads: advertiser adoption is still lagging. Advertisers are wary about losing money due to allegedly inherent poor-quality traffic – a criticism the GDN deserved when the only targeting method depended on imprecise keywords.

Fast forward to recent years, and many advertisers are winning with the GDN using powerful targeting methods that let them zero in on hyper-targeted customer segments and display hyper-pertinent ads.

In 2016, learn and employ targeting GDN ads using “In-market audiences” and “Custom affinity audiences.”

Katy Tonkin, VP of Digital Strategy, Point It

Katy Tonkin2015 was (finally) the year of mobile and mobile will continue to be a major cornerstone in 2016. Advertisers are seeing impression volumes on desktop and tablets flat or even declining.

On top of that, desktop and tablet CPCs on brand and trademarked terms are increasing at a higher rate than ever before. In order to maintain growth, advertisers must incorporate mobile into their strategies.

2016 will also be the year where we start to see the end of mobile as just an engagement or awareness tactic and not a conversion tactic. User adoption, apps, mobile payments, and cross-device tracking capabilities all are contributing to the viability and value of mobile traffic.

Social and display advertising long ago outpaced the search engines in audience targeting functionality and usability. And in 2016, investment and growth in social advertising is listed as one of the most important marketing initiatives for advertisers.

Many surveys also show that advertisers plan to increase their Facebook spend at either the same percentage or more than what they spend on Google AdWords. Why? Advertisers have so much more control of their reach and the message through social.

Lastly, another hotly debated trend to watch in PPC circles the is the shift away from keyword targeting to audience or persona targeting. Expect to see Google and Bing continue to rapidly beta and mainstream features that allow advertisers to use first-party data for more sophisticated targeting, bidding, and messaging.

Frederick Vallaeys, CEO and Cofounder, Optmyzr

Frederick VallaeysAds created from structured data will continue to get more important in 2016. Shopping ads (which are automatically generated from the structured data in a product feed) already account for more than 1 in 3 clicks for retailers and these types of ads will continue to take away clicks from more generic search ads in 2016. Google will also launch new specialty ad formats to expand on their current offerings which already include mortgage ads, home service ads, and hotel ads.

Video ads will see significant momentum and more innovative ad formats. While video ads have long provided much lower CPCs than traditional search ads, they have been somewhat difficult to manage but now that Google has integrated their TrueView ad formats more deeply into AdWords, they will see larger adoption.

This will drive up CPCs but because there is so much inventory it will limit the increase and still make them a relatively good buy. Google will also introduce new ways to place ads alongside or inside videos that will provide better targeting and improved conversion rates, further making video a great area for advertisers to expand into in 2016.

Now that we have Customer Match in AdWords, it’s clear Google is willing to follow the leaders in social when it comes to the targeting options they provide. Look for more ways to target users behaviorally, demographically, psychographically, even when they are on the Google search results pages. This will provide a great opportunity to target very narrowly to exactly the right types of users who not only searched for your keywords but who also fit the typical profile of your typical customer.

Purna Virji, Senior Bing Ads Client Development & Training Manager, Microsoft

Purna VirjiI believe that Voice Search is going to be something advertisers have to increasingly pay attention to in 2016. Given the increasing adoption of digital personal assistants like Cortana or Siri across all ages groups and demos, voice search queries could begin to have an effect on advertisers and how they approach mobile PPC.

Already Bing’s research is showing that voice search queries tend to be more question-based and consist of longer phrases. What’s interesting is that the type of question posed can reveal the intent to purchase. For example, “what is home depot” vs. “where is the closest home depot”, with the latter having a higher purchase intent. Advertisers can then adjust their bids based on intent and ensure they’re capturing this mobile audience. Voice search is going to be a trend PPC marketers would benefit by following.

The experts have had their say. Now it’s your turn. What do you think will be the key PPC trends in 2015? Share your thoughts in the comments.

Danny Goodwin

Written by Danny Goodwin

Managing Editor, Momentology

Danny Goodwin is the former Managing Editor of Momentology. Previously, he was the editor of Search Engine Watch, where he was in charge of editing, content strategy, and writing about search industry news.

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