Why shouldn’t we use the display extension for our ads?

Short Answer: Using the display extension for ads is not advisable because it can cause your entire budget to be spent inefficiently. For example, with a $200 daily budget, Google might allocate part of this budget to people actively searching for your keywords, but then spend the rest on display ads. This often leads to widespread brand exposure without generating any conversions.

Full Explanation

The primary issue with using the display extension in your ad campaigns is the way your budget gets allocated. When you set a daily budget, such as $200, Google tries to spend this budget by showing ads to users who are actively searching for your specific keywords. Once those users are targeted, the remaining portion of your budget gets spent on display ads. This happens regardless of whether display ads bring conversions or not.

In other words, Google endlessly populates the internet with your brand through display placements, but this does not necessarily translate into effective results. The brand may appear everywhere, but without meaningful engagement or conversion from potential customers.

Step-by-Step Breakdown

1. You set a daily budget for your campaign (e.g., $200).
2. Google spends part of this budget targeting users actively searching for your keywords.
3. The remaining budget is then used to place your ads on display networks.
4. The display extension leads to broad and endless ad placements across various sites.
5. This results in increased brand exposure without guaranteed conversions.

Real Examples

Consider an advertiser with a limited daily budget who wants to focus on users searching for relevant keywords. If they use display extensions, much of their budget will be diluted by ads shown across the display network. Despite widespread presence, the ads fail to convert visitors into customers, making the campaign inefficient and costly.

Common Mistakes

• Assuming that more visibility always leads to conversions.
• Not monitoring how the budget is distributed between search and display networks.
• Using display extensions without considering their impact on conversion-focused campaigns.

FAQs

Can display extensions increase brand awareness?

Yes, they can increase brand visibility across the internet but often at the expense of conversion rates.

Is it better to avoid display entirely?

Not necessarily, but if your goal is conversions with a limited budget, avoiding display extensions can help focus spending on active searchers.

Key Takeaways

• Display extensions can exhaust your budget by placing ads broadly without driving conversions.
• With limited budgets, focusing on search ads yields better conversion potential.
• Careful budget management and campaign setup are essential for effective ad spending.