Just how beneficial is utilizing one ad format in Google Ads over another? What type of results should we expect? Let's dig in.

Initial Thoughts & Best Guess

Before launching into my data analyses of all 5 websites involved, I made note of my instincts/hunches/preconceived notions on Responsive Search Ads as well as Expanded Text Ads. They include the following:

1. Based on my knowledge and experience, Responsive Ads will have a lower engagement as a whole, due to the many combinations of headlines and descriptions. So if a Paid Search Manager isn't on top of the position pinning aspect of the ad builds, you can get some really funky and just "off" ads.
2. I expect Responsive Ads to not convert as well as expanded.
3. Due to the control over all elements of the ad copy, I expect Expanded Text Ads to convert much more often and with a lower CPA.
4. Because we don't have as much control over where and when specific headlines and descriptions show within the Responsive ad format, I anticipate the rate at which searchers bounce from the website after viewing a responsive ad to be higher than that of expanded ad clickers.

The Objective

I analyzed all of my industrial B2B Google Ads accounts and isolated the 5 best-performing accounts over a very recent period of 5 months (January 2020 through May 2020,) across 6 separate Key Performance Indicators (KPIs.) "6 KPIs?", you ask. "Why not 5, to keep it consistent?" Hey! It's my data analysis and I've often been told that I'm an overachiever. So there.

Anyway. I aim to highlight similarities and trends across these accounts in comparison to the previous 5 month period of August 2019 through December 2019. I preface all of this by stating that my findings are in no way representative of what every account's results should be in the same time span. It at least gets me thinking and strategizing for the next 5 months and beyond, and lays out some benchmarks to work to maintain and improve upon.

For the sake of anonymity, I'll refer to these 5 accounts as Client A, B, C, D and E. Only 2 of the 5 accounts cross into the same space/vertical with potentially shared customers.

The Key Discoveries

• Responsive ads drew on average 11.7% higher costs per click than Expanded
• Responsive ads pulled in traffic which bounced 4.9% less of the time
• Responsive ads had an 8.7% higher cost per acquisition on average
• Responsive ads had a better engagement with a 26.3% higher CTR
• Expanded ads converted 13.9% more often than Responsive Ads

* Compared to Previous 5-Month Period

Clickthrough Rate (CTR)*

Client A - 21% increase

Client B - 11% decrease

Client C - 5% increase

Client D - 9% increase

Client E - 58% increase

• an overall increase of 23%

Conversion Rate (CVR)*

Client A - 17% decrease

Client B - 57% decrease

Client C - 79% increase

Client D - 4% decrease

Client E - 186% increase

• an overall decrease of 6%

CPA (Cost per Acquisition)*

Client A - 13% decrease

Client B - 403% increase

Client C - 39% decrease

Client D - 45% increase

Client E - 46% decrease

• overall increase of 35%

Bounce Rate*

Client A - 0.3% increase

Client B - 2% decrease

Client C - 9% decrease

Client D - 9% increase

Client E - 0.5% decrease

• overall decrease of 1%

Costs per Click (CPC)*

• a near 10% increase in overall Costs per Click

Diving in Further

Client A's Responsive Ads had a 37% lower clickthrough rate than average but converted 26% more of the time. Client C's clickthrough rates were also below average with a 46% lower CTR. However, it too outperformed the average with a 50% better conversion rate. In fact, Clients B, D & E all performed at or above the averages in CTR but converted 25-45% less than their counterparts.

For Client D, there was a noticeable $79 rise in CPA for the Expanded Text Ads in March through May compared to January and February, while their Responsive Ad CPAs rose $58. However, that appears to be a bit of a fluke since each of the other 4 clients experienced 16% to upwards of 66% decreases in CPA.

From March through May, the responsive format ads converted 37% more often than the expanded ads. Clients A and D are the only accounts of these 5 which had slightly better conversion performance (~20%) out of their expanded text ads compared to the responsive type.

I could draw more examples and comparisons between each of these accounts across the 10 months of data, but I want you to be awake as you read my conclusion and final takeaways.

How beneficial is one ad format over the other?

Overall, the Responsive Ads average clickthrough rate of 11.2% wouldn't be enough to convince me that they are superior to Expanded Ads, but despite their 11% higher cost per click, Responsive Ads...

• Appear to convert on average much more frequently
• Have a CPA which decreases quite nicely with each passing month
• Attract traffic which has a tendency to bounce less often

Google Ad Format Conclusions

My final note to you in regard to ad formats is that one should not rely solely on one format over another. They each have their strengths. I have corroborated my own experiences with numerous studies that show that the best expanded text ads spring from Responsive Ads. As long as you've given them enough time to deliver you sufficient data. 

I also really love the control that is gained with expanded ads, including the ability to set the headlines and descriptions based on personal preferences. But at the same time, it is quite exhilarating to craft Responsive Ads with the multiple headlines and numerous descriptions, allowing yourself to sit back and see what receives the best reaction and results. By supplying them with both expanded ads and responsive ads, Google will eventually thank and reward you for not being a one trick pony.

If you would like additional advice, further paid search insight, are interested in having an audit performed on your Pay-Per-Click account or if you have any questions about Responsive Search Ads, Expanded Text Ads or anything PPC-related, feel free to contact Ecreative at your convenience.