The ever-growing presence of artificial intelligence (AI) in our lives has sparked both excitement and apprehension. As AI tools such as ChatGPT become increasingly accessible and sophisticated, their influence on various industries, including digital marketing, cannot be ignored.
In this blog, we will explore the potential impact of AI, particularly ChatGPT, on pay-per-click (PPC) advertising. We will delve into expert predictions that shed light on how AI will shape the future of PPC, and the strategies marketers should consider to stay ahead in this evolving landscape.
From automation to personalization, ChatGPT and AI hold immense potential to revolutionize PPC campaigns and redefine the way businesses engage with their target audience.
Let’s dive in and explore the fascinating possibilities that lie ahead.
AI Predictions For 2023 And Beyond
As we step into the future, the role of artificial intelligence (AI) continues to expand, revolutionizing various aspects of our lives. With each passing year, AI technology evolves at an unprecedented pace, and the year 2023 holds immense promise for groundbreaking advancements.
From improving healthcare and transforming industries to reshaping the way we interact with technology, AI predictions for 2023 and beyond are both thrilling and thought-provoking.
Here are the six predictions based on AI and ChatGPT that are expected to flourish in the coming years:
1. Continued Innovation
As ChatGPT and AI continue to evolve and improve, we expect ongoing innovation in the PPC industry. This could lead to new ad formats, targeting techniques, and measurement tools that help advertisers get even better campaign results (which we’ve already seen from Google Marketing Live 2023).
The rate at which we will see these changes is still up in the air. As mentioned, AI is progressing at a somewhat alarming speed. With any new technology, there is typically an adoption period that spans months and years that allows industries to catch up.
For example, it took years for businesses to master the online selling process to the point where it is the primary place of commerce. The internet itself took decades to evolve. This gave everyone enough time to adjust and slowly grow their businesses. With AI and ChatGPT, we could experience change at a rapid and disruptive rate that hasn’t necessarily been experienced since the industrial revolution.
2. Increased Competition (And Higher Costs)
Due to AI tools like ChatGPT’s potential to provide advertisers with more powerful tools for targeting and optimizing their PPC campaigns, increased competition for an already saturated ad space may ensue. Suppose advertisers leveraging ChatGPT can achieve better results and generate more revenue from their campaigns. In that case, it may lead to higher prices for keywords and make it even more difficult for smaller advertisers to compete.
ChatGPT could be particularly beneficial for larger advertisers with the resources to invest in machine learning algorithms and other advanced technologies. These advertisers can use ChatGPT to gain a competitive advantage and outbid smaller advertisers for ad space. It is a possibility that increased usage of ChatGPT and other AI tools may improve blind spots that the account managers, agencies, and practitioners who are working for larger businesses otherwise would have missed.
It’s important to note that this prediction is not particular, and many factors could influence the competitiveness of the paid media space for years to come. One thing is reasonably confident, though, that search advertising is not getting any cheaper.
Another issue discussed is the reduction in the usage of Google Search because of ChatGPT.
The AI tool can answer nearly any question you would search for on Google in addition to curating lists of recommendations for travel or entertainment. (The only caveat is that ChatGPT, in particular, can only source information up to 2021.)
Google recently announced its own AI search experience, Google Search Generative Experience (SGE), which integrates AI into the SERP. This experience pushes organic search results further down the page and may impact non-paid search traffic and click-through rates, increasing competition to show in Google Ads above SGE results.
3. Greater Reliance On Machine Learning
Over the last six years, we’ve touched on the increasing use of machine learning in the paid media space in numerous posts. Our position on the topic has remained consistent, although slightly altered, over this time. To summarize the views: machine learning has dramatically improved the ease of setting up and running campaigns, and with particular goals set within the platform, significant improvements to performance can be experienced.
However, the increased usage and forfeiture of control from advertisers to the “algorithm” run by the entity designed to take your advertising budget isn’t always good. These platforms can add unnecessary bloat to campaigns and limit your ability to make very refined adjustments that you used to be able to make. They are essentially trying to make PPC a one-size-fits-all robot that will run your ads for you.
Advertisers may rely more on machine learning algorithms to manage their PPC campaigns as AI tools evolve and improve. As stated above, this could lead to greater efficiency and better results. However, it may also lead to a lack of insight into how money is spent and a general lack of genuine nuance that a human can apply to a marketing campaign.
4. Enhanced Ad Copy
One of ChatGPT’s obvious strengths is its natural language processing capabilities. By giving the AI enough information about the type of ad copy you are looking to generate, ChatGPT can produce persuasive (and sometimes surprisingly creative) suggestions. Whether you wish to use ChatGPT as a starting point to brainstorm headlines or have it generate the ad copy word-for-word, it is a potent tool for PPC.
ChatGPT has been trained on vast text data and can generate natural-sounding language. It could help advertisers create more engaging ad copy that resonates with their target audience.
Even the best marketers have periods of writer’s block, feel their copy could be better, or hit the desired pain points more concisely. ChatGPT is extremely helpful in these situations as it can provide additional feedback on your target audience. Take the copy you wrote and edit it to be more readable.
Google is also using AI to help advertisers create and enhance ad copy. They announced asset creation within Performance Max, which will use generative AI to generate ad headlines that more closely match search queries.
5. More Efficient Ad Campaigns
With improvements to both targeting and ad copy, ChatGPT and other AI tools can help advertisers create more efficient ad campaigns overall.
Making certain aspects of the process, such as keyword research and ad copy less tasking, and AI could help advertisers save considerable time and reduce costs.
ChatGPT, for example, can analyze user behavior and preferences to understand what ads are most likely relevant and engaging to each user. It could analyze data such as search history, browsing behavior, and social media activity to determine what topics and products users are interested in.
With this information, ChatGPT could make more accurate and personalized ad recommendations for each user. Instead of showing generic ads that may not be relevant to the user’s interests, ChatGPT could suggest advertisements that are more likely to resonate with each user based on their preferences. These more personalized ad recommendations could result in a better user experience and higher engagement and conversion rates.
Additionally, ChatGPT could help advertisers optimize their ad campaigns based on user feedback.
6. Improved Targeting
ChatGPT (and AI in general) can analyze large amounts of data and generate insights about audience behavior. We already see this with innovative bidding strategies within Google Ads.
Given that the target keywords and ad copy you have created are aligned, Google’s automated bidding can “learn” how to produce more desired results, such as conversions, clicks, and more over time.
AI tools, however, can analyze data through text, CSV, or JSON files. It can analyze user behavior on websites and other digital channels to identify patterns and trends. It can track which pages users visit and how long they stay on each page; they also show their actions (like clicking links or filling out forms).
Using ChatGPT for keyword research can also help you curate lists and structures for ad groups to target. (We don’t recommend using it as your primary keyword research tool)
With this information, ChatGPT could help advertisers develop more effective targeting strategies for their PPC campaigns. For example, by identifying the keywords and phrases that their target audience is most likely to search for, they can create more relevant and engaging ads.
ChatGPT could also help advertisers segment their audience based on demographics, interests, and behavior.
7. Ad Targeting And Performance
There will likely be many more innovations of this kind, and ChatGPT is just one example. Several creations are expected to be made by PPC in terms of artificial intelligence and machine learning. Advertisers can now use more advanced tools and algorithms to analyze user behavior and preferences, identify trends, and optimize their campaigns as AI and machine learning technologies develop.
8. New Ad Formats And Channels
Another area where we can expect to see innovation is using new ad formats and channels. Advertising may be delivered through voice assistants or intelligent speakers as these devices become more prevalent. A new type of augmented reality (AR) or virtual reality (VR) ad may also be on the horizon, displaying more information, being more personalized, or being more immersive.
9. Measurement And Attribution Of Ad Performance
We can expect continued innovation in the measurement and attribution of advertising. As more and more users interact with ads across multiple devices and channels, advertisers will need better ways to track and analyze these interactions to understand the impact of their ad campaigns.
10. Voice-Activated PPC Ads
AI-powered PPC platforms can adapt to voice-activated ads as voice search and virtual assistants become more popular. It is possible to generate conversational ad scripts for voice interactions through ChatGPT, allowing advertisers to reach users via voice-enabled devices.
ChatGPT and AI integration will transform how advertisers strategize and optimize their pay-per-click (PPC) campaigns. Advertisers can expect better results and higher returns on investment thanks to improved ad targeting, automated bid management, improved ad copy generation, and real-time optimization.
As voice-activated ads, ad performance prediction, fraud detection, and audience insights become more prevalent, advertisers can deliver more personalized and engaging ads.
The future of PPC advertising is bright, with endless opportunities for innovation and optimization in the age of artificial intelligence. If you’re ready to leverage the power of AI in your PPC strategies or have any questions, feel free to contact us. Our team of experts is here to guide you toward success in this evolving landscape.