Google Instant – Instant Revenue

Yesterdays update from Google has sent shock waves through the online advertising community, clients and agencies alike are now desperately adjusting models and forecasts to try and anticipate the effects on PPC and SEO traffic and alter their strategies accordingly.
Will this massive change affect search behaviors? Advertising and Optimising strategies? And most importantly… ROI for the advertiser??
Well the honest answer is that no one knows for sure… bloggers, agencies and even Google employee’s are hedging their bets, no one seems to want to put their head on the chopping block for this one!
Although we don’t profess to have all the answers, we have some thoughts that anyone concerned about Google Instant should consider:

Google is a business and like any business they want to increase revenue… Google would have tested Google Instant in depth before releasing to ensure it will not have a negative affect on their bottom line. I am not suggesting that generating revenue is more important to Google than improving the users journey, however, clearly this is a consideration for any business owner.

As such we believe that this is likely to cause more people to click on PPC (As SEO results are pushed down the page) or cause people to search for and click on broader terms – cutting the tail, either way this is likely to increase PPC costs, but the real question is, will this affect the quality of traffic generated and therefore conversion rates and ROI if users are tempted into broader searches?

What will be the effects on Click Through Rate and therefore Quality Score, will this increase avg CPC’s or will the effects normalise nationally as the change will affect all users?
How will this impact user interaction?
Will this actually affect PPC costs?
What should advertisers do next?
We will be updating our blog throughout the day with our thoughts on the above so stay in touch and please do let us know your thoughts!
Anthony
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