The rapid rise of artificial intelligence, once confined to the realms of science fiction, is now a tangible reality. This technological advancement, while offering immense potential, has also sparked widespread debate about its long-term implications.
While some enthusiastically embrace AI and its potential, others approach it with understandable trepidation. Regardless of personal stance, the undeniable truth is that AI tools, such as ChatGPT, are readily available, widely used, and continuously evolving. This underscores the significant impact AI will have on digital marketing, including PPC, in the coming years. Let’s explore six predictions for ChatGPT, AI, and their influence on the future of PPC marketing:
- Heightened competition and potential cost increases
- More precise targeting capabilities
- Improvements in ad copywriting
- Enhanced efficiency in ad campaign management
- Increased dependence on machine learning
- Continuous advancements and innovations
1. Heightened competition (and potential cost increases)
The potential of AI tools like ChatGPT to empower advertisers with enhanced targeting and optimization capabilities for their PPC campaigns could lead to increased competition in an already crowded ad space. Should advertisers leveraging ChatGPT achieve superior results and increased revenue, it could drive up keyword prices, potentially making it more challenging for smaller advertisers to compete effectively.
Larger advertisers, with their resources to invest in machine learning algorithms and advanced technologies, stand to benefit significantly from ChatGPT. It could provide them with a competitive edge, enabling them to outbid smaller advertisers for ad space. This increased utilization of ChatGPT and other AI tools might also help larger businesses address blind spots that their account managers, agencies, or practitioners might have missed.
It’s crucial to acknowledge that this prediction is not absolute, as numerous factors can influence the future competitiveness of the paid media landscape. However, one certainty is the upward trajectory of search advertising costs.
Another concern raised is the potential decline in Google Search usage due to ChatGPT. This AI tool demonstrates remarkable capability in answering almost any query one would typically input into Google, even providing curated travel or entertainment recommendations. (However, a current limitation of ChatGPT is its inability to access information beyond 2021.)
Google’s recent introduction of its AI-powered search experience, Google Search Generative Experience (SGE), further integrates AI into the SERP. This integration pushes organic search results further down the page, potentially impacting non-paid search traffic and click-through rates, thereby escalating competition for visibility in Google Ads above SGE results.
In essence: While I don’t foresee AI tools like ChatGPT or Google SGE signaling the demise of search ads or search itself, I do believe they represent a step towards a more efficient model.
2. More precise targeting capabilities
ChatGPT, and AI in general, possesses the ability to process vast amounts of data and extract valuable insights into audience behavior. This is already evident in existing smart bidding strategies employed within Google Ads.
Given aligned target keywords and ad copy, Google’s automated bidding can progressively “learn” how to deliver the desired results, such as conversions or clicks. AI tools, however, have the capacity to analyze data presented in various formats, including text, CSV, or JSON files. This enables them to scrutinize user behavior on websites and other digital channels, identifying patterns and trends. They can track user journeys, including pages visited, time spent on each page, and actions taken (like clicking links or filling out forms).
ChatGPT also proves valuable for keyword research, facilitating the creation of lists and ad group structures for targeting. (However, relying on it as the primary keyword research tool is not recommended.)
Armed with this information, ChatGPT could assist advertisers in developing more effective targeting strategies for their PPC campaigns. For instance, it could pinpoint keywords and phrases most likely to be used by their target audience, enabling the creation of more relevant and engaging ads.
ChatGPT could also empower advertisers to segment their audiences based on demographics, interests, and behavior.
In essence: While AI isn’t replacing PPC professionals just yet, those who embrace its potential will gain a competitive advantage over those who don’t. As a Google executive aptly stated at Google Marketing Live 2023, “You’re not competing against AI. You’re competing against other marketers using AI.”
3. Improvements in ad copywriting
One of ChatGPT’s evident strengths lies in its natural language processing capabilities. Given sufficient information about the desired ad copy, ChatGPT can generate persuasive and surprisingly creative suggestions. Whether used as a brainstorming tool for headlines or for generating complete ad copy, it’s an incredibly powerful asset for PPC marketers.
ChatGPT’s training on vast amounts of text data enables it to generate natural-sounding language, aiding advertisers in crafting more engaging ad copy that resonates with their target audiences.
Even seasoned marketers experience writer’s block or feel their copy could be more impactful. ChatGPT proves invaluable in such situations, providing additional insights into target audiences and refining existing copy for improved readability.
Google is also leveraging AI to enhance ad copy creation for advertisers. Their announcement of asset creation within Performance Max highlights the use of generative AI to generate ad headlines that closely align with search queries.
In essence: AI tools like ChatGPT offer a valuable starting point, but they still lack the human touch needed to imbue ad copy with personality and genuine human connection. However, considering the critical role of ad copy in marketing, even minor improvements can yield significant returns in CTR and overall ad performance. (Utilizing ChatGPT prompts as a starting point can be highly beneficial in enhancing ad copy.)
Ready to hit the jackpot of ad copywriting tips?
Free guide: 10 Tricks to Get the Click: How to Write Exceptional PPC Ad Copy (with Examples!)4. Enhanced efficiency in ad campaign management
Through improvements in targeting and ad copy, ChatGPT and other AI tools have the potential to significantly enhance the overall efficiency of ad campaigns.
By streamlining tasks like keyword research and ad copywriting, AI can save advertisers valuable time and reduce costs. ChatGPT, for example, can analyze user behavior and preferences to understand which ad types are most likely to engage each individual user. By examining data such as search history, browsing behavior, and social media activity, it can determine user interests and preferred topics and products.
This allows ChatGPT to provide more accurate and personalized ad recommendations for each user. Instead of generic ads, ChatGPT can suggest those more likely to resonate with individual preferences, potentially leading to a better user experience, higher engagement, and improved conversion rates.
Furthermore, ChatGPT can assist advertisers in optimizing their ad campaigns based on user feedback.
In essence: AI’s ability to analyze user behavior and preferences provides valuable insights into which ads are most effective and which ones underperform. Advertisers can utilize this information to adjust their targeting and ad creatives, thereby improving the overall effectiveness of their campaigns.
5. Increased dependence on machine learning
Over the past six years, there’s been a notable increase in the use of machine learning within the paid media landscape. My stance on this topic has remained consistent, albeit with minor adjustments. In summary: machine learning has significantly simplified campaign setup and management. When specific goals are defined within the platform, noticeable performance improvements can be observed.
However, the increasing reliance on and relinquishing of control to algorithms developed by entities designed to manage advertising budgets is not always ideal. These platforms may introduce unnecessary complexities to campaigns and limit the ability to make nuanced adjustments that were previously possible. Essentially, the attempt is to transform PPC into a one-size-fits-all automated system.
As AI tools evolve and improve, advertisers may become increasingly reliant on machine learning algorithms to manage their PPC campaigns. While this could lead to greater efficiency and improved results, it also raises concerns about transparency in ad spend and the potential lack of genuine nuance that only a human can bring to a marketing campaign.
Google aims to provide more transparency into Performance Max campaign optimization through its enhanced search term insights report.
In essence: This prediction raises the most concern for several reasons. Primarily, AI is undoubtedly capable of managing PPC campaigns independently. Whether now or in future iterations, the technology clearly possesses the ability to build and execute campaigns, potentially leading to job displacement.
However, this should not be the case, and here’s why: Many search advertising professionals have found that AI-implemented “best practices” aren’t always optimal for every advertiser. AI used for PPC campaign setup, creation, and management will adhere to the best practices defined by its creators, which may prioritize the company’s interests over cost-effectiveness for the advertiser. Therefore, incorporating human oversight and a touch of human intuition into AI-powered PPC campaigns remains crucial.
Want to learn how to use AI the right way for your marketing?
Free download >> Emergency Guide to AI in Marketing6. Continuous advancements and innovations
The continuous evolution and improvement of ChatGPT and AI promise ongoing innovation within the PPC industry. This could lead to novel ad formats, targeting techniques, and measurement tools, empowering advertisers to achieve even better campaign results (as glimpsed in Google Marketing Live 2023).
The pace of these changes remains uncertain. As mentioned earlier, AI is advancing at a remarkable rate. New technologies typically experience an adoption period spanning months or even years, allowing industries to adapt.
For instance, it took years for businesses to fully embrace online selling, which is now a primary mode of commerce. The internet itself evolved over decades, giving everyone ample time to adjust and evolve their businesses gradually. With AI and ChatGPT, we might witness rapid and disruptive changes, the likes of which haven’t been experienced since the industrial revolution.
Source
Here are some key areas where we can anticipate continuous innovation:
Advancements in ad targeting and performance
ChatGPT is just one example of this innovation, and many more developments are likely to emerge in the coming years. The use of artificial intelligence and machine learning to enhance ad targeting and performance is a prime area for ongoing advancement. As AI and machine learning technologies continue to mature, advertisers will gain access to more sophisticated tools and algorithms for analyzing user behavior and preferences, identifying trends, and optimizing ad campaigns.
Emergence of new ad formats and channels
Another area ripe for innovation is the utilization of new ad formats and channels. For instance, with the increasing prevalence of voice assistants and smart speakers, advertisers may explore ways to deliver ads through these devices. Similarly, we might witness the emergence of more interactive, personalized, or immersive ad formats, such as augmented reality (AR) ads or virtual reality (VR) ads.
Enhanced measurement and attribution of ad performance
Lastly, continued innovation in measuring and attributing ad performance is anticipated. As users interact with ads across multiple devices and channels, advertisers need better ways to track and analyze these interactions to understand the true impact of their campaigns.
In essence: This continuous innovation within the PPC advertising industry paves the way for a more effective and efficient advertising ecosystem. Advertisers will be able to reach their target audiences more accurately, while users will experience more relevant and engaging ads. This also underscores the need for advertisers to stay informed about updates in the PPC landscape and be prepared to adapt, experiment, and continue achieving positive results.
The bottom line: AI’s impact on PPC marketing
The future of PPC advertising appears promising, offering numerous opportunities for advertisers to achieve their marketing goals, especially when leveraging AI capabilities to enhance campaigns rather than relying on them entirely.
As AI continues to evolve, staying ahead of the curve and keeping abreast of the latest updates and innovations will be more critical than ever.
Here’s a recap of the six ways AI will impact PPC:
- Increased competition (and potential cost increases)
- More precise targeting capabilities
- Improvements in ad copywriting
- Enhanced efficiency in ad campaign management
- Increased dependence on machine learning
- Continuous advancements and innovations