Mattzy's comments

For sure, it's pretty obvious.

The other consideration here is that last year Google announced that mobile queries had surpassed desktop, so the overall impact to advertisers is actually going to be smaller than they think.

Limiting the number of traditional paid search ads is the only way Google can continue to maintain a balance between SEO & paid search while enabling them to test new products/paid ad formats. Think integrated voice results, video results, etc.

Google can only maintain its market position as a business if they continue to deliver the best search experience. And to do this, they need to continually improve their search product.

I've worked in paid search for some time now and can't help but chime in.

I'd agree CPC/CTR will increase. But if you think about it, the real logical reason for the change is that Google needs more real-estate. Search is continuing to evolve (I.e, the way the you and I look for information), and Google has been testing new ad formats to better serve queries.

Limiting the number of traditional paid search ads is the only way they can continue to maintain a balance between SEO & paid search while testing new ad formats.

I wouldn't at all be surprised if they began testing a new product in the latter half of 2016