Google Ad formatting – the rich get richer?

Have you looked at Google’s search results recently?

If so, you might have noticed the big difference between the top ad and the next 3 ads. 

Here’s a screenshot for the search “amazon seller software”

Results for Amazon seller software

As you can see, the top ad gets two lines of text and multi-line sitelink extensions.

The next 3 ads – Junglescout, Sellics and Zonguru – get no ad extensions and just one line of text.

What’s even stranger is what’s happening at the bottom of the page…

Ads at the bottom of the page

The ads are much bigger, and they all have ad extensions showing.

Why is Google doing this? And what will the impact be?

With Google, it usually makes sense to “follow the money.”So let’s ask the question: how will this increase Google’s ad revenue?

Well, if I were to guess, shrinking the size of the 2nd, 3rd and 4th ads will reduce their clickrate and increase the clickrate of the top ad.

So that means there’s even more incentive to be #1. And that could drive up bids.

So what about the bottom of the page? Why are the ads so big there? Is this strategic? Or are they just normal-sized ads that look big relative to the shrunken ads at the top of the page?

My guess is it’s the latter. That this new format is just for the top of the page ads. But that’s just a guess.

Interesting times, as always.