So, what impact do we expect this to have on Paid advertising, will it require us to raise our bids and budget to push us in to the top spots, or will it push people into a broader keyword strategy, with an eye on less traffic yet lower CPC and a higher average position.
What Exactly is Changing?
  1. No text ads will be served on the right rail of the search results on desktop.
  2. Google will serve four text ads instead of three in the mainline area above the organic listings for more “highly commercial queries”. We don't have a definitive answer of what a "commercial query" is, but we can hazard a guess that it refers to any search phrase where the user intends to make a purchase or ecommerce intent.
  3. Three text ads will show at the bottom of the SERPs.
  4. The total number of text ads that can appear on a SERP will shrink from as many as 11 to a maximum of seven.
  5. Product listing ad blocks and Knowledge Panels (sometimes with ads, as tests continue in these spaces) will show in the right rail on relevant queries.
These are worldwide changes, so we aren't alone in the major shake-up. And it doesn't seem to have had an impact on Organic rankings, so Knowledge Graph results are still appearing well, along with other areas of AdWords such as the Shopping database, and image and news results.
Do we think that CPC will jump?
It is certainly too early to tell, but we suggest watching competitors closely and ensuring average positions and click-throughs remain at an optimal rate for the business.

Written by Emma Puzylo February of 2016