Artificial Intelligence in Google Ads: How are new algorithms changing the rules of the game?

Головна / Artificial Intelligence in Google Ads: How are new algorithms changing the rules of the game?

In modern digital marketing, artificial intelligence (AI) plays a key role, especially in the context of the Google Ads platform. Thanks to the introduction of the latest algorithms, advertising automation processes have reached a new level of efficiency and personalization. In this article, we will take a detailed look at how AI is changing approaches to managing advertising campaigns, what new Google Ads features have become available to advertisers, and what benefits this brings to businesses.

The evolution of advertising automation in Google Ads

Google Ads has evolved from manual campaign management to the use of sophisticated machine learning algorithms. Initially, advertisers relied on their own intuition and limited data to customize ads. Over time, the growth of information and the need for more precise targeting led to the introduction of automated solutions. Today, AI analyzes large amounts of data about user behavior, their demographics, and interaction history, allowing you to make informed decisions about managing advertising campaigns.​

Smart Bidding and Responsive Ads

One of the key AI features in Google Ads is Smart Bidding. This technology allows the system to automatically set the optimal bids for each auction, taking into account the probability of conversion and other factors. This allows advertisers to achieve better results without having to constantly adjust their bids manually.​

Example:

Let’s imagine two similar keyword phrases: “tax advice” and “tax assessment.” Although they seem similar, the system may assign a significantly higher bid for the second phrase because data analysis shows that users who type “tax assessment” are more likely to convert. In this way, the AI ​​adapts the bidding strategy to maximize results. ​

Responsive search ads are another innovation that uses AI. Advertisers provide multiple headlines and descriptions, and the system automatically combines them, determining the most effective combinations for each user. This provides a more personalized approach and increases the likelihood of attracting the target audience.

AI-powered recommendations for brands

In 2024, Google Ads introduced Brand Recommendations, which provides personalized advice to improve campaign performance. These recommendations cover a variety of aspects:​

The system analyzes the history of the advertising account and the performance of previous campaigns, automatically updating recommendations when new optimization opportunities are identified.

Generative AI in Demand Gen campaigns

In April 2024, Google announced the introduction of generative AI for Demand Gen campaigns. This feature allows you to create visual content for campaigns directly during their setup, using text queries adapted to your brand style and marketing needs. The “generate more like this” feature allows you to automatically create new images based on existing creatives, which helps diversify visual materials and maintain audience interest.

Challenges and limitations of using AI in advertising

Незважаючи на численні переваги, використання ШІ в Google Ads має певні обмеження. Наприклад, генеративний ШІ не завжди може створити зображення, що точно відображає ваш продукт чи послугу. Як зазначає Дмитро Загорулько, PPC Team Lead Webpromo, використання згенерованих ШІ зображень може призвести до невідповідності між очікуваннями клієнтів та реальністю, що може негативно вплинути на довіру до бренду. ​

Example:

A designer furniture company decided to use generative AI to create images for a new collection. However, the generated images did not accurately reflect the actual appearance of the furniture, which led to disappointment among customers after receiving the product. This highlights the importance of carefully reviewing and correcting AI-generated content before using it in advertising campaigns. In addition, automated systems may not take into account specific nuances of the business or market that are known only to specialists. Therefore, a combination of automation and human control is the optimal approach to achieve the best results.

Conclusion

The integration of artificial intelligence into Google Ads is fundamentally changing the way you manage your advertising campaigns, opening up new opportunities for automation and personalization. Using smart bidding, responsive ads, and generative AI can improve your ad performance and reach your target audience more precisely. However, it’s important to consider the limitations and challenges of using AI to ensure that your customers’ expectations are aligned with reality.​

A balanced mix of automated tools and human control allows you to make the most of the AI ​​capabilities in Google Ads, ensuring high performance and customer satisfaction.