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Pay per click advertising into 2024 and beyond

The Wordstream Blog has been looking at How ChatGPT and AI will impact PPC advertising, and the conclusions provide some food for thought. Here are the six outcomes they predict.

  1. Improved targeting: AI, including ChatGPT, possesses the ability to analyse data and generate insights about audience behaviour, as seen in smart bidding strategies within Google Ads. It can analyse user behaviour across various digital channels, tracking page visits, actions taken, and more. While AI doesn’t replace PPC professionals, those who utilise it gain a competitive edge over others.
  2. Increased competition (and higher costs): AI tools like ChatGPT have the potential to enhance advertisers’ targeting and optimisation of PPC campaigns, leading to increased competition in an already saturated ad space. This could result in higher keyword prices, making it harder for smaller advertisers to compete. The usage of Google Search might decline due to ChatGPT’s ability to answer questions and provide recommendations. Google’s own AI search experience, SGE, further intensifies competition for ad placement. However, AI tools are not the end of search ads, but rather part of an evolving and more efficient model.
  3. Enhanced ad copy: ChatGPT is a powerful tool for generating persuasive and creative ad copy. It can assist in brainstorming headlines or even generate the entire ad copy for PPC campaigns. While AI tools lack personality, they still offer valuable assistance. Google is also using AI to generate ad headlines aligned with search queries. Even small improvements in ad copy can yield significant returns in terms of click-through rates and overall performance.
  4. More efficient ad campaigns: By streamlining tasks like keyword research and ad creation, AI helps advertisers save time and reduce costs. Analysis of user behaviour and preferences will allow for personalised ad recommendations based on individual interests and browsing history. An ability to analyse user feedback will enable advertisers to optimise campaigns by making informed adjustments to targeting and creative elements.
  5. Greater reliance on machine learning: Advertisers may become overly dependent on machine learning, leading to a lack of transparency and human nuance in campaign management. Google aims to enhance transparency through improved search term insights. Although AI can run PPC campaigns effectively, it shouldn’t replace human involvement. Advertisers have found that AI’s “best practices” may not align with specific advertisers’ needs and cost-efficiency, so incorporating human oversight is crucial for successful PPC campaigns.
  6. Continued innovation: We are likely to see new ad formats, targeting techniques and measurement tools, including new ad formats and channels like voice assistants and interactive ads, and advancements in measuring and attributing ad performance. Embracing these innovations will result in more effective advertising, but staying updated and adaptable will be crucial for advertisers to achieve positive outcomes.