In late 2017, Google announced they would be making changes to their Google AdWords Grant policy effective January 1, 2018. So what are these changes, and how do they affect you? We want to highlight three of the major changes so you can adjust your accounts accordingly.
1. Account Structure
The way you organize your account according to your goals is very important and up to you, but everyone must follow Google’s new Grant guidelines to ensure you do not have your account potentially cancelled.
Under the new guidelines, campaigns must be structured to the following specs:
- Minimum of two active ad groups per campaign
- Minimum of two active ads
- Minimum of two Sitelinks extensions
- Must have location targeting setup in relevant locations to your nonprofit
This is not something to be afraid of at all. Google wants to make sure your accounts are structured to get you the best performance and make sure you are up to date with their best practices. Updating your accounts now to meet these guidelines means less work for you later if any other changes occur.
2. Maintain a 5% Click-Through Rate Each Month
Now that we know how our accounts must be structured, let’s shift our focus to performance. The new policy states our campaigns must maintain at least a 5% CTR. If this is not met for two consecutive months, your account will be cancelled. Google will not cancel your account without notifying you first about the potential of this happening, this way you have time to make the necessary changes before this is met.
If your account is cancelled, you can update your account and submit a request to have your account reinstated by Google. There are many different factors that do play into your CTR for a given month – seasonality, account not structured correctly, competition, bid amount, etc. As long as you have your account set up appropriately, you give yourself the best opportunity to perform and not have your account cancelled.
3. $2 Bid Max. Bid Limit has Been Lifted (under Maximize Conversions bid strategy)
In the past, Google has capped the max bid limit to $2 per click. Under the new policy, you have the option to set your campaigns to the ‘Maximize Conversions’ bid strategy. For those not familiar with this strategy, this is an automated bid strategy where Google will set your bids for you. As long as you have conversion tracking setup (having past history helps), your bids will be automatically set and can exceed the $2 limit!
While the $2.00 max bid limit still does exist for other bid strategies, we now at least have a way to exceed this and improve our campaigns performance. For example, since we have the potential to bid more than $2 per click, this then gives us the potential to show at a better position and drive more conversions and CTR (aiming for that 5% CTR).
Here at JumpFly, we work to get our clients accounts updated to Google’s best practice and new policies at all times. If you need help with your account, reach out and we are happy to see what we can do for you!