Some notes from my Google Rep addressing some of the concerns expressed to him directly as well as displayed in this previous Google Instant Post.
Here is a summary of the predicted impact of Google Instant on your Adwords Campaigns.
1) As one would expect impressions have been seen to rise while clicks stay the same hence causing the average CTRs to fall (Resource A). For instance, one advertiser observed a 20% increase in impressions over the period of Sept 8-12th immediately after Instant was launched but only a 15% increase in the number of clicks. However the key thing to remember is that it’s not the exact CTR that affects the Quality Score but CTR relative to one’s competitors. And since the CTR for your competitors should drop proportionally, this not something to worry about. I could run a Search Query Report to identify new negatives keywords that will help ensure your impressions are as relevant as possible.
2) One thing that does need to be looked into is the performance of exact long tail keywords. With faster results the likelihood of users typing a 3-4 word keyword before clicking on a result gets smaller. You can use the ‘Keyword Word Count’ filter in the ‘Advanced Search’ section for keywords in Adwords Editor with more than 3 words. I suggest we keep an eye on these and tweak as necessary in the next 8-10 days?
Phrase match will not be affected too much as the matching will be based on the predicted phrase, not just what the user has typed.
3) Some feared that Instant would lead to the clicks moving north – i.e. ads in positions 1-3 would get more clicks than ads in lower positions. However according to the study in resource B, the median change in clicks was not very significant. What has been observed is an old theory – that the ads in the top positions are more likely to cause conversions. “It is not crazy to suggest that the people who stop typing early to select an ad do so precisely because they’ve read the ad more carefully than the average searcher has done historically.” You can review the keywords with the best average positions by sorting by average position in the ‘keywords’ tab within your account and make sure they have enough budget to bring in all possible conversions.