\n Stay Forward <\/h2>\n
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- November 30, 2022: ChatGPT (GPT3.5) released to the public for free.<\/li>\n
- February 7, 2023: Microsoft announces the addition of ChatGPT functionality to its Bing search engine.<\/li>\n
- March 14, 2023: ChatGPT 4 is released<\/a> and made publicly available as the fee-based \u201cChatGPT Plus\u201d.<\/li>\n
- Key improvements include multimodality (images and videos, not just text), larger token limit, and improvements in comprehension as well as advanced reasoning\/problem solving.<\/li>\n
- March 21, 2023: Google releases BARD (powered by PaLM) through a waitlist invitation.<\/li>\n
- May 10, 2023: Google announces PaLM 2, promising lightweight, on-device LLM (large language model) capabilities, and teases Gemini.<\/li>\n
- May 25, 2023: Google begins a limited rollout of its PaLM 2-enabled SGE (Search Generative Experience).<\/li>\n<\/ul>\n
![\"Graphic](\"https:\/\/www.dacgroup.com\/wp-content\/uploads\/2024\/12\/01-AI-mentions-on-earnings-calls.jpg\")
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\nImage: @Barchart<\/a><\/p>\nDespite the hype, AI has been a part of our lives for a significant period. Neural networks and large language models have been evolving over time. Transformer, developed by Google, stands as a foundational LLM, serving as the backbone for various AI applications, including ChatGPT. In the field of SEM, AI has long been employed, forming the basis of how modern search functions operate, utilising machine learning techniques for functionalities such as Smart Bidding, In-Market and Affinity audience targeting, and responsive search ads, as a few examples.<\/p>\n
How AI applies to paid search: What\u2019s new?<\/h2>\n
The future of search is undergoing a transformative shift towards conversational search, bringing about exciting possibilities for marketers and advertisers. With advancements in AI, campaign and ad creation is set to be streamlined and driven by intelligent algorithms. Prepare for a paradigm shift with more “black-box” campaigns that seamlessly span across multiple screens, such as Google\u2019s Performance Max (Pmax). These campaigns will be audience-focused rather than tactic-based, harnessing the power of AI and automation. Moreover, asset creation will become more accessible than ever before. From text ads to image ads, videos to product feeds, AI will simplify the process, empowering advertisers to create compelling content across various formats.<\/p>\n
When it comes to incorporating chat, Microsoft\/Bing was first. Therefore, it’s worth contemplating adding incremental budget to Bing in order to tap into the growing audience that Bing is acquiring through the integration of chat. By increasing their budgets, advertisers can extend their reach and engage with this new audience. To maximise the likelihood of ads appearing, it is recommended to utilise multi-media ad types and leverage automation. By incorporating visually appealing and dynamic elements into ad creatives, advertisers can capture the attention of users within the chat-driven Bing environment. However, it\u2019s important to note that there is currently no ability to create separate campaigns for \u201cregular\u201d search vs. chat-based search, nor any separate reporting.<\/p>\n
But, of course, Google is catching up. Here are some of the latest announcements about AI on the Google side:<\/p>\n
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- Conversational campaign set-up in Google Ads<\/strong> (coming soon) to generate keywords and ad assets based on your conversational inputs with Google Ads.
![\"The](\"https:\/\/www.dacgroup.com\/wp-content\/uploads\/2024\/12\/02-Ad-group-setup.jpg\")
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\nImage: Google<\/a>
\n <\/li>\n- Search Generative Experience (SGE)<\/strong>, which is the inclusion of chat in Search, similar to Bing; currently only available via Search Labs in the US.\n
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- SGE remembers context, so as you continue your conversation in search, it will remember what you \u201cchatted about\u201d previously and layer that into its responses.<\/li>\n
- Ads will be integrated natively within the search experience. The SERP layout will continue to change, as Google will be performing multiple experiments on this based on user data from Search Labs, etc. However, they confirmed that ads will continue to appear in dedicated ad slots, and that they are \u201ccommitted to continue sending valuable traffic to sites across the web<\/a>.\u201d<\/li>\n
- However, much like Bing, the same lack of performance data will apply. At the beginning, at least, you won\u2019t be able to separate campaigns for \u201cregular search\u201d vs. \u201cchat search\u201d, nor will separate reporting be available.
![\"Google's](\"https:\/\/www.dacgroup.com\/wp-content\/uploads\/2024\/12\/03-SGE.jpg\")
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\nImage: Google<\/a>
\n <\/li>\n<\/ul>\n<\/li>\n- Shopping Ads will take even more prominence than before<\/strong> in the new Search Generative Experience. Driven by Google\u2019s Shopping Graph, in the examples above and below, you can see that Shopping Ads in SGE appear significantly more robust than they do today, with additional text information in a larger format.<\/li>\n
- Performance Max<\/strong> is definitely a hot topic at Google. Driven by AI, this advertising solution operates with a high level of automation and limited control, resembling a “black box” in terms of management. It spans across multiple screens and ad types, prioritising audience targeting over specific ad formats or placements. Google’s emphasis on AI signaling is evident, as seen in the transition from Local Campaigns to Performance Max. This shift aligns with the trend towards more automation observed over the past few years, such as the sunsetting of ETAs in favour of Responsive Search Ads (RSAs)<\/a>. While it remains speculative, a similar transition for Smart Shopping campaigns into Performance Max seems plausible, given Google’s trajectory. Although no guarantees can be made, these developments reflect Google’s ongoing commitment to leveraging AI and automation in advertising strategies.\n
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- Similar to Google Ads campaign creation using AI, this type of conversational campaign creation element will also be available in Pmax.
![\"Setting](\"\/wpe-content\/uploads\/2023\/07\/04-Pmax.gif\")
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\nGIF: Google<\/a>
\n <\/li>\n- New optimisation goals\/bidding strategies based on customer value will be available in Pmax (currently in beta), allowing advertisers to bid more for high-value customers (new customer acquisition) or lapsed customers they want to entice to come back.
![\"High-value](\"\/wpe-content\/uploads\/2023\/07\/05-High-value-scaled.jpg\")
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\nImage: Google<\/a>
\n <\/li>\n- Perhaps most interestingly, this new inclusion of AI in Pmax will also automatically generate ad assets based on your site\u2019s URL. It\u2019ll write product headlines and descriptions, and will even pull recommended imagery for image-based ads.
\n <\/li>\n<\/ul>\n<\/li>\n- Google Merchant Center Next will be a HUGE step up from the current Merchant Center experience<\/strong>. It\u2019s already being rolled out, and will be fully rolled out in 2024. One of the biggest changes is that rather than submitting a (hopefully well-optimised) product feed to Merchant Center, it will be able to pull the information directly from your site and, using AI, format that into the required fields. This is especially beneficial for brands that have struggled to create store-level feeds for Local Inventory Ads (LIAs) because, as long as local availability is housed on the website, Merchant Center Next will be able to create local feeds as well. This auto-create feature can be turned on or off within Merchant Center Next.
![\"Google](\"\/wpe-content\/uploads\/2023\/07\/06-Merchant-Center-Next-1.jpg\")
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\nImage: Google<\/a><\/p>\nAnother great feature in Merchant Center Next is the integrated Product Studio<\/strong>. Product Studio uses generative AI to create and edit product imagery for ad assets. This uses text-to-image functionality, meaning you type the image you want and AI will spin it up.<\/p>\n
![\"Google's](\"\/wpe-content\/uploads\/2023\/07\/07-Product-images.gif\")
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\nImage: Google<\/a><\/li>\n- You will be able to using AI to reformat videos<\/strong>. Given the variety of ways users watch video on YouTube (mobile, computer, TV screen), it\u2019s important to have video assets that can be formatted to go cross-screen. With the new AI-powered tools in YouTube, you can reformat a horizontal video into vertical and square formats, so your video can reach more people across screens.
![\"Reformatting](\"\/wpe-content\/uploads\/2023\/07\/08-Reformat-video.jpg\")
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\nImage: Google<\/a><\/p>\nGoogle has helpfully provided an AI Essentials checklist<\/a>, which includes a huge callout for Google Analytics 4 implementation. Significant measurement improvements, including some new privacy-focused ads measurement, will require Google Analytics 4 (GA4)<\/a>.<\/li>\n<\/ol>\n
\n \n \n\n - New optimisation goals\/bidding strategies based on customer value will be available in Pmax (currently in beta), allowing advertisers to bid more for high-value customers (new customer acquisition) or lapsed customers they want to entice to come back.
- However, much like Bing, the same lack of performance data will apply. At the beginning, at least, you won\u2019t be able to separate campaigns for \u201cregular search\u201d vs. \u201cchat search\u201d, nor will separate reporting be available.
- Search Generative Experience (SGE)<\/strong>, which is the inclusion of chat in Search, similar to Bing; currently only available via Search Labs in the US.\n