Engagement Ads: How to Only Pay for Interactions in Google AdWords

In AdWords campaigns, it's not always about the click. When it comes to brand building and increasing brand awareness, interaction with a display ad can already be valuable. Google acknowledges this with a new feature: Since last December, there are 'Engagement Ads.'

What are 'Engagement Ads'?

In Germany, the Engagement Ads run under the somewhat clunky name 'Interaktionsanzeigen'. These are interactive ad formats that are billed not by clicks or impressions, but by interactions (cost-per-engagement or CPE). You only pay for customers who notice your ad and send a positive signal by 'interacting.' Here, Google defines 'interaction' as hovering the mouse over the ad. To prevent incorrect billing, a duration of two seconds is considered an interaction.

You can only create Engagement Ads for the Google Display Network, and even then, only on websites that are enabled for it. It is also important to know that while the ads are designed for multi-screen, according to Google, they are targeted at users with high-speed internet access.

To increase the interaction rate, ads are automatically shown more frequently to users who are presumed to be interested in and will interact with the ad.

Creating Engagement Ads

For interaction ads, an engagement campaign must be set up. As campaign type, you must select 'Display Network only' and 'Interaction.' Under 'Bids and budget,' you will see, compared to traditional display campaigns, that only the 'Focus on interaction, custom maximum CPC bids' option is available.

Next, you create the ads from a template. Six customizable rich media formats are available in total:

• Expandable standard ads

• Hover-to-play ads (playback starts only with a mouseover of at least two seconds)

• Standard lightbox

• Masthead lightbox

• Catalog lightbox (from which purchases can be made directly)

In analyzing interaction campaigns, the 'Clicks' column (number of users who interacted with the ad), the interaction rate in the 'CTR' column, and in the 'Average CPC' column, the Average Cost-per-Engagement, are especially important.

Tips for using Interaction Ads

Engagement Ads, as the name suggests, are geared and optimized for interactions – unlike campaigns optimized for clicks and conversions. You should therefore be aware that this is mainly about branding and that the value of an interaction is more challenging to determine than, for example, a click that leads to a purchase. You should think in advance about how much an interaction is worth to you.

You should also have graphic resources such as videos or product catalogs because creating appealing ads in AdWords is not optimal and doesn’t replace a designer.

Further important information is provided by the technical requirements for expandable standard ads, lightbox ads, and hover-to-play ads directly from Google.

https://www.youtube.com/watch?v=wEnnyQiqZUw

The Interaction Ads sound promising, but are you unsure how to start successfully and efficiently with them? Our certified AdWords experts will be happy to help you. Just get in touch with us!