Google has rolled out a new “Sponsored results” label that groups ads together under a single heading. The change affects Search and Shopping ads across desktop and mobile. Instead of marking paid links individually with a small “Sponsored” tag, Google will now collect them under a clearly defined “Sponsored results” section. It’s not the first time Google has changed paid listings – these were previously labelled with “Ad” (which later became “Sponsored”).
The most significant part of the update isn’t the label itself – it’s that users can now choose to hide groups of ads for a more personalised browsing experience. The update is designed to make paid listings easier to identify, streamline the layout of search results and give users greater control over what they see.
What This Change Means for Advertisers
By allowing users to hide sponsored results entirely, Google is effectively introducing a new layer of user intent. Those who keep ads visible are likely to be more receptive and engaged, while those who hide them make it clear they’re not in the market right now. For advertisers, that means visibility and click-through rates could shift, but the traffic that remains may be of a higher quality.
Users who continue to engage with sponsored results will likely do so intentionally, leading to stronger performance data and potentially better conversion rates. If someone’s searching bottom-of-funnel terms like “buy running shoes online”, for example, they’re signalling strong intent. In that scenario, the right call-to-action, image extensions, and review links could be the deciding factor between a click, or ads being hidden.
This is where smart PPC strategy becomes critical. The key to success lies in ensuring your keywords, ad copy, and targeting all work in harmony. The best-performing campaigns will be those that understand audience behaviour, craft genuinely relevant messaging, and use Google’s ad formats to deliver value.
How This Update Affects PPC Campaigns
This update does two important things:
- First, it makes sponsored content more transparent. Users now have a clearer understanding of what they’re clicking on, which should lead to more intentional engagement. When someone clicks on your ad after seeing this new label, they know exactly what they’re doing.
- Second, the hide button gives users control. While some might see this as a threat to ad visibility, we view it differently. Those who choose to keep sponsored results visible are actively engaging with paid content – these are the clicks you actually want.
We believe this change will ultimately benefit businesses that prioritise their customers’ needs and create genuinely helpful advertising.
Best Practices for Google Ads Moving Forward
This change means the bar for ad quality just got higher. Your ads will need to capture attention and prove their value. Here’s what we’re focusing on for our clients:
- Better audience targeting: There’s no point showing your ads to people who’ll immediately hide them. We’re refining targeting parameters to reach users who are genuinely interested in what you’re offering.
- Ad copy relevance: If someone’s searching for “waterproof hiking boots,” your ad copy needs to speak directly to that need. Generic, one-size-fits-all messaging won’t cut it when users have the power to dismiss sponsored results.
- Landing page alignment: The landing page must deliver on your ad’s promise, so that when someone clicks through, they find exactly what they expected.
Here’s what excites us about this update: creating better, more relevant advertising serves both your business and users. When your ads align perfectly with user intent, this update becomes an advantage rather than a challenge, and could actually improve your campaign performance.
Our Key Takeaway
When users have the option to hide ads but choose not to, they’re demonstrating genuine interest. This means:
- Higher quality clicks from engaged users
- Better conversion rates from people who actively chose to see your ads
- Clearer data on which audiences are truly interested in your offering
- Reduced wasted spend on accidental or reluctant clicks.
The Last Word
Those who adapt will benefit from more intentional clicks, a better understanding of which user groups convert and which ones don’t, and more meaningful conversions. If you would like to learn more about this update or our Google Ads approach, please get in touch.