AI has been steadily transforming digital advertising for years, evolving from behind-the-scenes processes to the powerful, visible tools marketers use today.
One of the earlier implementations of AI was when Google made data-driven attribution available, which revolutionized how advertisers measure the value of each click in the conversion path. This shift from traditional first-click and last-click models allowed for deeper insights into customer journeys.
By 2022, AI truly hit the mainstream with tools like ChatGPT, capturing public attention and opening up new possibilities for marketers. Yet, the reality is that AI has long been a part of our marketing strategies, powering optimization behind the scenes. Now, in 2024, AI is a must-know technology for digital advertisers, driving both conversions and ad spend efficiency.
Key AI Milestones for Digital Ads
- 2013: Google introduces data-driven attribution, redefining conversion tracking.
- 2016: Automated bid strategies are introduced, shifting the focus to real-time optimizations.
- 2019: Google's BERT update improved its understanding of search intent, reshaping search and in turn search ads
- 2022: The launch of ChatGPT made AI more accessible to businesses and consumers alike, signaling a new era in human-AI interaction.
How AI Transforms Ad Platforms
AI continues to revolutionize ad platforms by optimizing how ads are targeted and managed. It powers key features like Automated Bid Strategies, Broad Match keywords, and Responsive Ads, all aimed at improving efficiency.
If you give AI the right data to go out and learn, it can effectively target intent-rich micro-moments, as well, when users are most likely to convert. With automated bidding, AI can increase bids at the precise moment conversions are likely, which is something manual strategies struggle to achieve.
Keyword Match Types and Bid Strategies
Understanding keyword match types and their implications on campaign performance remains essential for optimizing campaigns in 2024.
- Broad Match: Captures a wide range of related terms. Once avoided by many marketers, it’s now one of the most effective strategies when guided by AI.
- Phrase Match: Focuses on specific phrase structures to target relevant searches.
- Exact Match: Targets close variations of specific keywords for precision.
While some marketers are still cautious with Broad Match, AI has made it a more effective strategy in many cases. However, campaign success still depends on data-driven insights specific to your industry.
Read more about the value of using broad match keywords.
Automated Bid Strategies
AI-driven bidding strategies like target CPA (cost per acquisition) and target ROAS (return on ad spend) are crucial in today’s landscape. These strategies optimize for outcomes by adjusting bids dynamically, allowing advertisers to make the most of their budget.
Responsive Ads: Maximizing Relevance and Performance
Responsive ads use AI to automatically combine headlines, descriptions, and visuals to display the most relevant messages to users. By feeding AI diverse creative assets, you let the system test and find the winning combinations, which boosts both efficiency and relevance.
The Latest AI Tools in Google Ads
Google Ads continues to integrate AI tools to help marketers streamline ad creation and optimization. These tools can generate ad headlines, write copy, and offer insights into audience performance. However, human oversight is critical to refine these AI-generated assets and ensure they align with your brand.
Providing AI with high-quality data, such as accurate conversion tracking and well-segmented audiences, is key to unlocking its full potential. In addition, it’s important to allow AI the flexibility it needs to test and learn, so budgets shouldn’t be overly restricted.
Boosting Efficiency with AI Tools
AI isn’t just for bidding and targeting – it’s also an efficiency driver in campaign management. From automating routine tasks with scripts to organizing data more effectively, AI helps you streamline workflows.
For example, AI can help organize large datasets in Excel or create scripts that reduce manual effort, freeing up more time for strategic tasks.
Remember, AI doesn’t do the work for you. It amplifies your ability to get the job done faster and smarter.
Case Study: Effective Use of AI in Ad Management
In a real-world example, a client of ours in the software services space changed consultants and ultimately changed their account to a more traditional paid ads approach. The shift from more automated strategies that our team was managing to more traditional methods when another agency took over led to a significant increase in cost per acquisition and decrease in quality lead generation, highlighting the importance of data-driven decisions.
When the client re-hired us to recover the results we had previously gained, we achieved a 92% reduction in cost per qualified lead, helping to translate those leads to real sales and maximizing ROAS.
Read the full case study here.
Conclusion
AI's role in digital advertising is undeniably transformative, offering tools and strategies that enhance targeting, efficiency, and overall campaign success. By understanding and leveraging these AI capabilities, marketers can stay ahead in the ever-evolving digital landscape.
Remember AI needs someone who oversee it and to teach it how to find the right conversions.
Whether you're a seasoned marketer or new to the field, embracing AI in your digital advertising efforts can lead to more effective and efficient campaigns, ultimately driving better results and higher ROI.
Watch a replay of our recent webinar, AI: The Future of Digital Advertising Is Here, to learn more. And don’t hesitate to reach out to us if you need advice or assistance with your digital ads. We offer complimentary ad audits and a variety of digital advertising services to help you achieve your goals.