In an era where AI technology is playing an increasingly important role in every industry, the online advertising sector is no exception. This is particularly true on platforms like Google Ads, which is leveraging AI to enhance ad system efficiency. However, how does this change impact online marketers? And how can we adapt to AI advertising to stay ahead of the competition?
In this article, we will explain the impact of AI advertising on PPC campaigns and recommend 5 ways to use AI to run effective ads and achieve targeted conversions.
The Impact of AI on Search Volume and CTRs
When it comes to AI advertising, it’s undeniable that one of the key impacts on Google search is the increase in search volume. However, organic results do not benefit from this increase. The main reason is that Google presents AI Overviews on the search result page, pushing organic search results down below the SERPs. Data from Crowe indicates that this change has resulted in a 60% decrease in click-through rates (CTR) and a potential 30% reduction in organic traffic, impacting almost every website.
The Impact of AI Overviews on Advertisers
Conversely, the AI situation seems to offer positive results for advertisers, as Google positions ads above AI Overviews, allowing ads to be displayed in a more prominent position. Therefore, this could be an opportunity for businesses to increase their advertising budget on Google Ads to take advantage of this new placement.
The Impact of AI on CPC
Although some may predict that the cost per click (CPC) might decrease due to increased ad space, it’s best not to expect too much. High CPC prices remain a problem for most advertisers, and if there is a decrease, it is predicted to be found in Performance Max and Demand Gen campaigns rather than general Search Campaigns.
Will Keywords Change Due to AI?
Over the years, advertisers worldwide may have seen a continuous decline in campaign performance from using single keywords for targeting. Many advertising experts predict that this trend will continue, and with the arrival of AI-driven campaigns such as Performance Max and Demand Gen, traditional search advertising using single keywords seems to be losing importance.
However, the use of keywords in advertising, which was once considered to be fading away, is likely to gain renewed attention for two reasons:
- The 30% decrease in Organic Traffic, as predicted, may create an opportunity for Search Ads to fill the gap.
- Google has announced improvements to the ad query matching and brand controls system, an update that advertisers have been waiting for a long time.
From all the impacts mentioned above, it is clear that online marketers need to adapt and continuously study changes both on Performance Max campaigns and Display Ads to optimize campaigns for maximum efficiency. So, how can AI be used to run ads? Read on to find out!
5 Ways to Deal with Changes in AI Advertising on Google
1. Understand New Match Types
Broad match is very different from what it used to be. AI will use contextual data and other data such as keywords in the Ad Group, Landing Page, search behavior, and User location to understand search intent. Marketers need to adapt accordingly.
2. Study New Campaign Formats from Google
As Google is seriously developing AI, AI-driven campaigns such as Performance Max are becoming increasingly important. We recommend that marketers add Performance Max campaigns to their advertising strategy, measure the results, and study the advantages and disadvantages of this campaign format compared to existing campaigns.
3. Find a Balance Between Match Types and Campaign Types
Because there is no one-size-fits-all formula for doing Performance Max or Search Ads, we need to test to find the best fit for Google advertising in each campaign.
4. Avoid Copy and Paste Campaign Strategies
For marketers in agencies or brands who run multiple ad campaigns, you probably know that a successful strategy in one campaign may not work in another, even if they are in the same industry. Therefore, we need to customize strategies to suit each business and campaign goals consistently.
5. Invest in Quality Content Production
Because AI-Generated Content is increasing, Google is facing a crawl and index content crisis due to the massive amount of content. Therefore, Google may not index generic, repetitive content. We recommend that marketers focus on creating high-quality content, created from experience or incorporating expert opinions on the subject, which will help the content stand out and rank better.
All the changes caused by AI in Google Ads are just the beginning. Marketers need to continuously monitor developments and adapt to changes. The topic of how to use AI to run ads will continue to be of interest and develop continuously in the future. The arrival of AI in the world of Google advertising is not something to be feared, but an opportunity for marketers who are ready to learn and adapt. Understanding the impact of AI and applying appropriate strategies will help you take advantage of this technology and succeed in online marketing in the AI era.
About Relevant Audience
We are Relevant Audience, a Digital Performance Marketing Agency specializing in SEO and one of the Digital Agency providing comprehensive digital marketing services to support businesses in reaching their target audience at the right time, place, and device (Right Time, Right Place, Right Device).
Our services cover everything from SEO services, Search Marketing, Social Media Ads, Search Ads to Influencer Marketing, and we are also a SEO Company that is a Google Partner. Our team consists of specialists ready to provide consultation and find solutions that meet business needs.
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