Google (GOOG) Enhanced Campaigns Gets Mixed Reviews
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Rating Summary:
44 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Google (NASDAQ: GOOG) recently made changes to its AdWorks offering with its new enhanced campaign. The new program streamlines the process for advertisers who want to target mobile and desktop / tablet users, or a combination of the two groups.
Commenting on the changes, analyst Heather Bellini of Goldman Sachs said, "While Google has highlighted the increased simplicity of the AdWords campaign management system as a positive, reactions to enhanced campaigns among our industry contacts has been mixed."
Bellini said many less sophisticated advertisers could find the new methodology more user friendly but pointed out that those very same customers could get tripped up with the new bid adjustment system.
"To look at the specifics, in enhanced campaigns advertisers set up a 'default' bid for desktop and tablet keywords, and the mobile bid is a 'multiplier' of that default bid. For example, assuming an advertiser sets a default bid of $1.00, for a mobile bid of $0.00 (effectively excluding smartphones from the campaign) the advertiser must set the mobile multiplier to -100%. By not doing so, less sophisticated marketers could inadvertently end up in mobile auctions."
Another complaint is that enhanced campaigns doesn't allow advertisers to target tablets only.
Overall, Goldman estimates enhanced campaigns could deliver 20-60bp of incremental growth in aggregate CPCs and revenue.
Goldman Sachs has a Neutral rating on Google with a price target of $700.00.
For an analyst ratings summary and ratings history on Google (NASDAQ: GOOG) click here. For more ratings news on Google click here.
Shares of Google closed at $799.78 yesterday.
Commenting on the changes, analyst Heather Bellini of Goldman Sachs said, "While Google has highlighted the increased simplicity of the AdWords campaign management system as a positive, reactions to enhanced campaigns among our industry contacts has been mixed."
Bellini said many less sophisticated advertisers could find the new methodology more user friendly but pointed out that those very same customers could get tripped up with the new bid adjustment system.
"To look at the specifics, in enhanced campaigns advertisers set up a 'default' bid for desktop and tablet keywords, and the mobile bid is a 'multiplier' of that default bid. For example, assuming an advertiser sets a default bid of $1.00, for a mobile bid of $0.00 (effectively excluding smartphones from the campaign) the advertiser must set the mobile multiplier to -100%. By not doing so, less sophisticated marketers could inadvertently end up in mobile auctions."
Another complaint is that enhanced campaigns doesn't allow advertisers to target tablets only.
Overall, Goldman estimates enhanced campaigns could deliver 20-60bp of incremental growth in aggregate CPCs and revenue.
Goldman Sachs has a Neutral rating on Google with a price target of $700.00.
For an analyst ratings summary and ratings history on Google (NASDAQ: GOOG) click here. For more ratings news on Google click here.
Shares of Google closed at $799.78 yesterday.
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