Google Launches Generative AI Ads in Search: Discover What Marketers Need to Know

Avatar publsher | May 23, 2023

Generative AI ads in Google search

Google Launches Generative AI Ads in Search

Google is set to launch generative AI advertisements in its search engine, signaling a significant development for marketers. During the Google Marketing Live event, the search giant unveiled its plans for AI tools, asserting its commitment to shaping the future of marketing. Here, we present the five most crucial insights for marketers.

AI-generated ads will now be integrated into Google’s search results across its various platforms, capturing the interest of marketers. These ads, which utilize the user’s search query to construct informative paragraphs with associated and relevant products, are initially scheduled for deployment in the United States.

Distinguished as ads generated by AI, these advertisements will be clearly labeled, distinguishing them from other search results. For a brand to qualify for this service, it must grant Google’s AI access to its website and employ the remarkable capabilities of Google’s large language model (LLM) technology to effectively summarize its offerings.

Marketers’ Suggestions for the Generative AI Ads

Numerous marketers and analysts have suggested that AI tools will disrupt the field of marketing, particularly in the realm of search. This explains Google’s determination to prove that its existing search-based marketing options are compatible with this technology.

Human involvement remains essential throughout the process. Following the aforementioned procedure, Google’s AI technology will generate a list of suggested keywords, images from either the company’s website or a stock library, and captivating headlines for the advertisement. Advertisers will have the opportunity to provide feedback and refine the ad before it goes live. Despite the hype surrounding AI, Google positions it as a tool that requires human approval prior to deploying Generative AI Ads.

One of the primary appeals to marketers, besides the remarkable technology, is the potential to reduce advertising costs. Given that enhancing marketing efficiency is a significant priority for advertisers this year, the selling point of this technology lies in cost reduction.

Google has revealed that early adopters have reported a 2% increase in conversions at a similar cost per conversion. Since the tool is seamlessly integrated into existing Search and Performance Max campaigns, there are no pricing discrepancies associated with its use.

Google Generative AI Images

Google has also announced the introduction of its generative AI tool for product images, allowing marketers in the United States to be among the first to leverage its capabilities. Recognizing that multiple images significantly impact the success of advertisements, resulting in up to a 76% increase in impressions and a 32% increase in clickthrough rates, Google’s team has acknowledged the high cost of manually creating these ads. Consequently, the new tool aims to streamline the process by generating multiple iterations of an image on the fly, incorporating various backgrounds, color tones, increased resolution, and more, through the power of generative AI.

Moreover, it is worth noting that Microsoft founder Bill Gates recently expressed his belief that AI-powered personal assistants will substantially impact the business models of Google and Amazon, in particular. During his address at the AI Forward 2023 event, Gates emphasized the significance of winning the personal agent race, predicting that people would no longer rely on search sites, productivity platforms, or even Amazon.

Tech Companies and their Generative AI Tools

While Google, like other major tech companies, has been actively developing AI tools for several years, and its applications already underpin many marketing transactions behind the scenes, the emergence of consumer-facing tools such as ChatGPT has increased the pressure on large tech firms to demonstrate their ability to keep pace with generative AI. Unfortunately, an initial demonstration of Google’s AI tool, Bard, received negative feedback due to a perceived error in one of its answers. Consequently, concerns about safety and misinformation have emerged within the AI ecosystem.

For Google, the opportunity presented by AI-generated ads in search results lies in showcasing its leadership in adopting this new technology to marketers. By providing concrete figures that demonstrate the cost and time-saving potential of this tool, Google aims to refute Bill Gates’ predictions and ensure that marketers continue to invest in its owned and operated platforms.

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