Artificial intelligence (AI) is transforming every facet of PPC advertising, from creative assets to audience targeting, reporting and continuous optimization.
With the rise of LLMs as an alternative to traditional research, we are also seeing huge disruption in Google’s search business.
This article explores the latest trends, tools and strategies to help you navigate the evolving search landscape and leverage AI as a co-pilot to improve paid media performance.
AI has disrupted paid media more than any other area of digital marketing over the past decade. We’ve seen a shift toward automated campaign management in Google Ads since the rollout of Smart Bidding in 2016, so we should be better equipped than most to leverage this technology.
More recently, we’ve seen huge advancements in generative AI capabilities, including tools like Microsoft’s Copilot integrating creative production capabilities and Google’s Gemini-based advertising solutions in Performance Max.
While these advancements offer many benefits, they also come with challenges, such as reduced ad originality and less transparency and control for advertisers.
Dig Deeper: AI and Google advertising: what’s next?
Maximum performance
Performance Max represents a significant move toward more automated advertising.
These campaigns automatically optimize for conversions across the entire Google network, including YouTube, Display, Search, Discover, Gmail, and Maps.
Recent updates have introduced additional layers of control, such as brand exclusion features, preventing Performance Max from relying too heavily on brand search.
These improvements are a step in the right direction, but Performance Max campaigns remain most effective when subject to close human oversight.
It was most effective in accounts with multiple campaigns, asset groups, more audience data, and high-quality creative assets.
AI Insights: Diversifying Your Media Mix
Google AI Overviews marks a huge change in Google’s search experience.
While much of the discussion around AI Insights has focused on their impact on organic search, Google announced that it would begin testing ads as part of AI Insights.
Ads from existing standard Search, Performance Max, and Shopping campaigns have the opportunity to appear in AI previews as part of this test.
Although AI previews have recently been scaled back due to quality issues, they will return for an increasing percentage of queries in the future.
AI insights would have led to fewer clicks in organic search results, which would have been a problem for many brands. This could increase competition and cost per click (CPC) for advertisers on Google Search.
Essentially, with AI insights pushing links further down the page, we’re seeing more and more brands that previously relied on SEO start to invest in PPC to fill the void left by organic.
Google is focusing more on user-generated content (UGC) and showing listings from more social media platforms. It recently partnered with Reddit to show more of its content in Google search results.
Reddit’s traffic grew nearly 40% year over year compared to Google, according to Similarweb.
Brands should consider exploring advertising on Reddit to keep up with the growing competition in Google Ads.
If Reddit pages remain highly ranked in Google search results, you’ll likely reach more relevant users by displaying ads on these high-intent destination sites.
Dig Deeper: 5 Ways Advertisers Can Prepare for Google AI Previews
SearchGPT
OpenAI’s new prototype search product, SearchGPT, poses a direct challenge to Google Search.
We and our agency clients have already received qualified leads from ChatGPT, showing that LLMs can be a viable alternative to search engines. This will probably affect advertising soon.
Although OpenAI said it wants a search experience “without drowning you in advertising,” ads will likely be integrated into these products sooner rather than later.
AI-powered image and video editing
Google’s AI tools for creative editing allow you to add objects and extend backgrounds, changing the way ads are created and optimized.
The recent introduction of 3D rotating ads and virtual try-ons in Shopping ads provides a more immersive and engaging user experience. In theory, this should improve user interaction and conversion rates.
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Best Practices for Structuring Accounts in the Age of AI
In the age of AI, structuring accounts and managing audiences effectively is crucial. There are two main ways to do this:
- Many targeted ad groups: This method leverages ad customizers and specific landing pages to create highly targeted campaigns.
- Fewer and larger ad groups: This approach uses fewer ad groups with more generalized targeting, relying on AI to optimize within these broader segments.
We’ve seen more and more clients return to the Hagakure method, which focuses on consolidating campaigns and ad groups to leverage Google’s machine learning more effectively.
This simplifies account management and improves the performance of automated campaigns.
Dig Deeper: 6 Ways to Use AI for Paid Search Account Restructuring
Challenges and opportunities
Challenge: Transparency and control
One of the major challenges of AI-driven advertising is the lack of transparency and control, which can lead to poor results.
However, recent updates, like the ability to exclude certain topics and keywords in Performance Max, are starting to address these concerns.
Opportunity: Leverage first-party data
Think of machine learning as a car and data as fuel. High-quality data is essential for optimal results.
First-party data is particularly valuable for guiding audience targeting and connecting offline conversions, which is crucial for effective PPC management, especially for B2B brands.
Challenge: Risk of over-reliance on AI-driven creatives
AI can simplify the creative process, but it risks making content too similar. Relying too much on AI can reduce the uniqueness of your ads, making it harder for your brand to stand out.
Balancing AI with human creativity is essential to keeping your brand distinct and capturing attention.
Opportunity: integrated research
With the search landscape disrupted by platforms like ChatGPT and Google moving toward more AI-powered results, PPC and SEO teams need to collaborate to ensure search drives incremental growth.
Takeaway: 5 Steps to Take Today
As AI reshapes search advertising, staying ahead of the competition requires a proactive approach. Here are five concrete steps to sustain your PPC campaigns:
1. Focus on data quality
Machine learning is the car, data is the fuel. Make sure your data is accurate and complete.
High-quality data forms the basis of successful AI-driven campaigns.
2. Balance automation and human expertise
Although AI can handle many tasks, human oversight is still essential. Combine the effectiveness of AI with the strategic thinking of your team to achieve the best results.
Tools like Microsoft’s Performance Max and Copilot offer significant benefits but require careful management, distinctive brand assets, and ongoing optimization.
3. Diversify your spending and reduce the need for research
As Google focuses more on UGC and younger users turn to social media rather than traditional search engines, brands should move some of their advertising budgets away from Google.
Investing in platforms like Reddit, which is becoming a popular news source, could be a wise strategy.
Dig Deeper: How to reach new audiences with cross-platform search advertising
4. Integrate your search data
Due to the decline in organic real estate, many brands are looking to invest more in PPC.
It is important to evaluate the incrementality of research as a whole. This helps determine which areas are worth investing in over the long term.
5. Invest in education and training
Continuing education will help you effectively leverage new tools and technologies.
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