Navigating the Evolving Landscape: The Impact of AI on Digital Marketing and PPC Ads in 2024

There is no doubt that Artificial Intelligence (AI) is bringing big changes to the digital marketing world; it is no longer just a buzz word but an integral component for digital marketing experts.

Getting to grips with the abundance of AI tools and features is imperative for businesses striving to stay ahead in a competitive landscape.

AI–powered algorithms have changed the way we approach PPC campaigns, with new technologies enabling marketers to reach and engage with their target audiences with more efficiency. The competitive nature of the world of PPC ads, means business are fighting for consumer attention across a mix of online platforms.

Let’s take a look at the main areas of AI that are improving PPC campaigns.

Enhanced audience targeting

Many ad platforms have incorporated AI into their audience segmentation, helping marketers to reach the right audience for their product or service.

By AI continuously monitoring and analysing user behaviour, marketers can create campaigns with advanced targeting, such as custom audiences, lookalike audiences and detailed targeting.

AI technology uses the data you provide and learns when to deliver your ad to the right people at just the right time to encourage them to convert. This technology can greatly benefit any digital ad campaign to improve performance and ROI.

An example of this technology is Google Performance Max ads, the AI algorithm allows marketers to target audiences based on their interest and intent signals to drive results. Meta, Amazon and Microsoft ads are also offering similar features.

This is only the beginning; as AI continues to evolve, we can expect to see even more sophisticated targeting capabilities emerge across digital advertising platforms.

Automation and efficiency

Managing and building ad campaigns is an ongoing responsibility, consuming considerable time and effort. One of the stand-out features of new AI technology is its ability to automate some of these tasks.

With the help of AI technology, PPC campaigns can be more streamlined and intuitive. Processes like keyword selection, bidding management and ad timing can all be done for you. This not only saves time but also has the potential to significantly enhance campaign outcomes.

A notable example of a platform that has this technology is Microsoft Advertising (formally Bing Ads). Microsoft Advertising's Automated Bidding uses an algorithm to analyse historical data and real-time signals to automatically adjust bids for maximum performance. Enhanced CPC (cost-per-click) and Maximise Clicks are two bidding strategies which automatically adjust bids to help advertisers achieve their campaign goals. Other ad platforms also offering this feature include Google ads, Meta ads, LinkedIn ads, Amazon ads and Pinterest ads.

Personalisation and user experience

AI-driven personalisation algorithms tailor ad content, such as messaging and creative assets, to an individual’s user preferences, behaviours and characteristics.

To dynamically customise ads, AI algorithms use data including a user’s search history, browsing behaviour, demographics, and previous interactions with ads. By analysing this data in real-time, AI algorithms can intelligently predict users’ intent and preferences, allowing advertisers to create personalised ad experiences that resonate with their target audience. This level of customisation increases the likelihood of users engaging and converting.

An example of this being used is within Meta ads. When building ads within the platform, a selection of headlines and descriptions can be added and the one that best suits the user will be chosen by the AI algorithm.

Google Performance Max uses the same technology but takes this further; as well as selecting a headline and description, AI can also choose imagery and video. The campaign will then dynamically optimise the ad format and placements across multiple Google Properties, including Search, Display, YouTube and Discover.

What’s on the horizon for AI in PPC ads?

If you are new to Google ads and find the platform overwhelming, then the good news is that it is testing a new AI assistant. Currently in open beta, this new tool is designed to support users in finding answers and solving issues they may be having with their Google ads account.

Something else new that is coming from Google is Search Generative Experience (SGE), a generative AI feature with a new approach. This feature is designed to make it easier for users to search and find the information they are looking for. There will be a big focus on users who search with questions and the AI will deliver an answer. There will also be the capability for a follow-up question function so users will not need to start a new search.

With the new AI feature the prime spot is taken by the generative AI which includes a focus on Shopping ads. However, Google has made no mention of what is to happen to Search ads and how losing this position could affect the performance.

The on-going evolution of AI is exciting for the PPC industry. It is imperative for marketers to stay informed on the latest developments so they can adapt their strategies and embrace AI as a powerful ally in driving PPC success.

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