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Google recently deployed another stealthy change that will have a mixed impact on the performance of countless ecommerce merchants. Your shopping ads are going to start showing on YouTube and Discover (an Android app), even if you didn't select that option.

Now, I love Google. But I do wish they would be a bit more transparent when they opt all of their customers in to new features that cost them money. This change hasn't been very well communicated, other than some hyped-up announcements back in May about new features coming soon.

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Direct response advertising through Google Ads probably has an ROI greater than any other investment opportunity available to an ecommerce merchant. It’s far greater than most people realize. The real return on investment is obscured by the way traditional cost accounting records the transactions and reports on them on a monthly basis. It’s easy to get distracted by tax accounting rules and forget the fundamentals of solid financial decision making.

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Fundamentally, with pay-per-click advertising, the idea is to balance the cost per click that we’re willing to pay with the profit per click that we expect to achieve. As advertisers, we attempt to find the right level of spending that maximizes the business profit. And since every business is dif...

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In a word, “No!”

In two words, “Hell no!"

In eight words, “No, because of the law of diminishing returns."

Here’s why…

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About a week ago, Google rolled out a new ad format for all AdWords advertisers called Expanded Text Ads. This rollout presents some tremendous opportunities for those who act quickly, and will penalize businesses that lag behind in the coming months.

We participated in an early rollout of Expanded Text Ads during the beta period, before this new feature was released to the general public, and want to make the case for why you should act quickly to take advantage of a window of opportunity that doesn’t come along every day.

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