The Implications of Google Instant on SEM

As Google introduced a revolutionized way of searching the internet with Google Instant, people start wondering what implications this will have. I believe that it will have an impact on a lot of different aspects:

AdWords Competition will increase even further

Competition on AdWords will increase on the suggested search terms Google provides. Advertisers who want to sell similar items will copy the “predefined” search terms that Google suggests and want to rank high on those. Users will likely stop typing after a few characters to see if Google already delivers the answer to what they were looking for. Traffic for the suggested search terms will increase. That means higher CPCs, which in turn means more profit for Google and less profit for the advertisers / merchants.

Long tail campaigns will get less important

I don’t think that long tail campaigns will be dead, but I do believe that they will become slightly less important. That is because more traffic will focus on the suggested search terms. Misspellings will also become less important.

Let’s see how users will accept the new Google feature and how it will affect SEM!