Artificial intelligence (AI) has the potential to revolutionize the world of search advertising, changing both its reach and cost efficiency. With advancements in generative AI and tools like ChatGPT, agencies are adapting their strategies to align with evolving search behaviors. Younger audiences, in particular, are increasingly relying on platforms like ChatGPT, TikTok, and Instagram for their search needs. These shifting user behaviors may have a profound impact on the advertising landscape.
Even prior to the pandemic, search advertising was steadily growing. However, the digital acceleration witnessed in 2020 has led to exponential growth across various search engine and marketplace platforms. According to Statista Market Insights, global ad spending in search advertising is projected to reach approximately $279.3 billion in 2023, up from $251.7 billion in the United States is expected to contribute a substantial portion of this spending, accounting for $118.2 billion this year.
One significant change in search advertising is the transition from consumers actively seeking information to expecting platforms to anticipate their needs. Search engines like Google now have the capability to predict users’ information requirements before they even pose a query. As a result, marketers need to understand consumer behavior to tailor their content accordingly. AI can assist in this process by refining contextual keywords and optimizing the bidding process to be more cost-efficient.
By utilizing AI, marketers can create a broader and more diverse array of keywords within their content. This expansion leads to increased contextual keyword possibilities, resulting in improved pricing efficiency in advertising. With access to “less obvious and unknown” keywords relevant to a specific audience, bidding for popular keywords becomes less costly. For example, an advertiser selling shoes may discover an unexpected keyword related to parenting that resonates with their target audience.
Several agencies have already embraced AI in their search advertising strategies. For instance, agency Red Door Interactive has incorporated AI into keyword research and article analysis to enhance their understanding of complex topics. This technology proves to be particularly useful in assisting less experienced team members in leveling up their expertise. However, it is crucial to recognize the limitations of AI, such as privacy concerns when sharing sensitive data. Agencies must establish policies that dictate how AI is used, ensuring transparency and client education.
While utilizing AI capabilities can bring numerous benefits, there are reservations regarding the use of sensitive data, especially in industries like healthcare. Agencies like Good Apple have implemented AI in various client services, including proprietary bidding solutions. However, they prioritize safeguarding client data and refrain from sharing it with larger language models like ChatGPT. It is important to understand that AI should not be relied upon for copywriting or content generation beyond the initial ideation stage.
AI has the potential to revolutionize search advertising by enhancing its reach and cost efficiency. Agencies are adapting their strategies to align with changing user behaviors influenced by the advancements in generative AI and platforms like ChatGPT. As the field continues to evolve, it is crucial to strike a balance between harnessing the benefits of AI while addressing privacy concerns and establishing clear guidelines for its usage.
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