Yesterday, Google Marketing Live took place at Google's Mountain View Campus, and was also broadcast live online, in addition to hosted venues in LA and NYC. At the event, a Googler emphasized to attendees that this is the "most important event of the year for Performance Marketers," underlining its significance with a strong focus on the future of search and AI.
The day's buzzword, AI, was exemplified by Google's demonstration of its integration across all aspects of their operations, catering to both customers and advertising partners. Below are a few key themes that stood out that brands should be thinking about.
AI is Changing Search Behavior
There is no doubt that with the advent of Large Language Models (LLMs), search is changing. Google recently introduced AI Overviews, a feature of its Gemini tool that generates AI-generated "answers." The full impact of this change on both brands and consumers remains uncertain, but one undeniable fact is that consumers are searching in new ways. Google said that 15% of their search volume is brand new every day, and that has been consistent for the past decade. They also shared that there are 12 billion visual searches per day and that 25% of them have commercial intent. Google argues that while LLMs provide direct answers that could deter consumers from researching deeper on a brand's website, they anticipate an increase in total searches conducted in diverse ways, benefiting all parties involved. While they didn’t give specifics, the gist was AI overviews have higher CTRs and longer times on site. Time will tell, but the shift is beginning, and brands need to be paying very close attention to this.
Good Data is Critical
For a while now, third party cookies have been disappearing, and while Google delayed Chrome’s extinction-level event until 2025, the way data is collected has already changed. This should motivate brands to accelerate their first-party data strategy to ensure their measurement and targeting capabilities remain as strong as possible. However, if that reason doesn’t motivate you enough, then let the use of AI be another critical motivator. As Google stated, “Good AI requires good data.” To leverage these AI advancements effectively, brands will require robust data architecture, which includes prioritizing first-party data. If a strong foundation isn’t in place, these tools become useless. Google rolled out several tools to help on the data side, including Google Ads Data Manager, and talked about their open source media mix modeling tool, Meridian. They are working hard to ensure that your data can be easily accessed, is secure, and can be deployed to improve the experience for customers.
Creative Tools Get Scaled with AI
Google also rolled out a bunch of creative tools within Google Ads that can be used across all platforms. These included everything from the ability to add stickers to YouTube shorts to AI creative generation tools. These tools will allow you to use text to generate net new creative, or make edits to existing creative. They also added many brand-specific tools to enable the use of brand-specific fonts and colors. As Google experiences significant growth on YouTube, especially with shorts, maintaining creative flexibility becomes crucial, as shown in their newly-debuted Google Demand Generation ad for YouTube. Shopping ads are expanding alongside the new feature "circle to search," enabling users to snap a picture and search for the product, with Google subsequently displaying relevant ads. 40% of shopping involves brand names, highlighting the influential role of brands, particularly in terms of creativity.
The Power Pair
The crowd clapped when Google said they were giving more tools to measure and optimize Performance Max campaigns. Brands maintain a complex relationship with Performance Max, yet this ad format, dubbed "The Power Pair" alongside Google Search, remains a fixture in advertising strategies. They presented data indicating that the Power Pair resulted in a 27% enhancement in advertiser outcomes, alongside a 10% improvement attributed to utilizing broad matches with smart bidding. Advertisers find it challenging due to the lack of control, but Google believes that using data to match consumers with ads aligning with their intent surpasses advertisers' self-selection capabilities. Like it or not, Google will persist in pushing these ad formats, making it worthwhile to test them. It's essential to remember that data plays a crucial role in achieving success with these formats; understanding your customer and the necessary KPIs will enhance their effectiveness.
Conclusion
Several additional features were introduced, including partnerships with Shopify and influencers, Gross Profit Bidding, and various other enhancements, amidst a significant overhaul of Google Ads driven by AI, marking an exciting period for brands. You can watch the full keynote here and read more updates here. We will guide our clients forward by leveraging data, cloud, and AI to effectively utilize these tools and accelerate their growth.
