In today's digital landscape, the influence of Artificial Intelligence (AI) on online advertising is undeniable. From streamlining the bidding process and reporting to predictive analytics and enhanced targeting options… but how reliable is it?
Our PPC and Google Ad Specialist at Website Success, Felix Almario, takes a closer look at how AI functions and why it's a topic worth discussing:
How AI Works in Online Advertising and Google’s Role
The current integration of AI in online advertising, to put it briefly, revolves around forecasting and optimising campaign performance. By analysing historical data, AI helps advertisers by suggesting keywords, adjusting budgets, and enhancing visuals to boost clicks and impressions. It also aids in reporting campaign performance and comparing results across different periods.
As AI evolves, especially within Google advertising, it promises to bring more functions to ads across various platforms. Early discussions are crucial for every digital marketing agency and business owner to understand its potential and its pitfalls…
Here are some of the challenges I and our clients have faced recently with leveraging Google’s AI function:
Privacy Concerns
AI use often involves the collection and scrutiny of user data, sparking privacy alarms in advertisers’ heads and the potential of regulatory challenges. Whilst this isn’t something likely to cause us problems now, it’s worth noting.
Algorithm Complexity
I and other advertisers have also encountered difficulty in understanding the intricate algorithms propelling AI systems, which hinder manual troubleshooting or optimisation of campaigns. They’re a real pain to navigate!
Increased Competition
The increasing number of advertisers harnessing Google's AI creates a wild race for ad placements and user attention, resulting in elevated advertising costs. More players mean stiffer competition, so decent ad performance is increasingly hard to achieve!
Overreliance on Data
An excessive dependence on AI-driven data analysis can lead to an overemphasis on quantitative metrics. As with most processes driven by data, it’s important not to neglect qualitative aspects and common sense, which are crucial for effective advertising strategies. This is where humans come in.
Potential Bias
AI algorithms can inherit biases from training data, resulting in unintended discrimination or skewed targeting, putting our ads in front of the wrong people – basically, a bot's version of favouritism!
Lack of Transparency
Google's AI algorithms pose a challenge for advertisers seeking full transparency (which I hope is most of us), making it difficult to comprehend how decisions are made and optimised within the system. If Google tells us it’s right, it must be right... No?!
Algorithm Updates
Changes in Google's AI algorithms or policies can significantly impact advertising strategies, requiring quick intervention and adaptation by advertisers to remain effective. So it keeps us on our toes!
Considerations for Niche Businesses
Google's AI effectiveness in ads can also vary across industries. Niche businesses should be cautious regarding Google’s ability to judge and present competition levels, data availability, consumer behaviour, budget considerations, product specifics, target audience size, and algorithm adaptation. The challenge for niche businesses is careful and conscious management of budgets and tailoring strategies to their unique audience’s behaviour patterns and industry characteristics –which only a PPC specialist can do!
So, No! Google Is Not Always Right
This isn’t to say AI cannot streamline some tasks, but humans remain crucial as only we can bring common sense to the table. AI analyses situations based on numbers, but human insights contribute an invaluable perspective, connecting us to our audience and overall producing better, more successful ads.
If you need the help of a human with your Google ad management, or you’re interested in our other PPC services, contact our Chichester office on 01243 888555 or click here to book a chat in the diary.
