Google Instant and it Effect on Adwords | Will Adwords be more Costlier than Ever

Google Instant has something to say to Search Engine Optimizers and Google Advertisers.

It is a simple message to SEOs to wake up and be on your toes. This means relying on few top search volume keywords to pull search traffic might not work out in the presence of Google Instant.

It is indeed a hard message to Adwords advertisers compared to the message voiced to SEOs. Adwords advertisers are very likely to witness instant increase in avg.CPC due to Google Instant.

CTR is a major contributor to the Quality score which helps the Adwords advertisers to pay less for every click on their ads. CTR when expanded becomes click through rate and arrived by the following calculation Clicks/Impressions * 100. If the CTR comes down for a particular keyword the Adwords advertiser is bidding,  it will directly contribute to the increase in the CPC aka cost per click. Decrease in CTR is due to increase in number of impressions not accompanied by adequate clicks. Google Instant is prone to increase the number of impressions that will / will not result in reasonable amount of clicks to stop reduction of CTR.

Just read the below example:-

Searchers do not need to hit the search button to see the results, they have to just select the suggested keywords or pause typing for 3 seconds. Obviously this is going to increase the impressions for any keyword, if this is not going to get the companionship of clicks to a minimum extent, certainly this is going to affect the CTR and CPC. Here Google can smack its lips to get more money from Adwords advertisers.

Other example on impression increase and Google's target of Exact match:-

An advertiser has a keyword in exact match and the keyword looks like this [SSL]. A searcher types SSL in Google.com, immediately Google throws lot of keyword phrases before him, he skips SSL and selects a suggested long tail keyword.

The above scenario has resulted in an impression increase for the [SSL] and a lost opportunity for the advertiser if he do not have long tail keyword in his Adwords account. If thousands of searchers follow this attitude, the keyword will witness a decline in CTR and an increase in CPC.

Google here indirectly prompts the advertisers who have mainly used exact matches to switch over to other matches. Exact match keywords are cheap compared to broad match and phrase match keywords. Because of Google's clever strategy advertisers are left with no options other to use broad match or phrase match keywords if they are serious on their business.