The Dawn of AI-Infused Advertising
Google, a subsidiary of Alphabet, has announced its plans to experiment with incorporating advertisements into search results powered by generative artificial intelligence (AI). This move is seen as a strategic step to maintain its edge over Microsoft in the highly profitable search ads industry.
The AI Revolution in Search Engines
In recent times, both Google and Microsoft have been accelerating the transformation of search engine functionality by integrating generative AI. This advanced technology is capable of providing written responses to queries in a conversational manner, synthesizing online information, and highlighting relevant websites. The introduction of AI is also set to revolutionize the way advertisers connect with consumers through search engines, a market projected to reach a staggering $286 billion this year, as per MAGNA research.
A New User Experience
The new version of Google, equipped with AI, could respond to a user's search for "hiking backpacks for kids" with an advertisement for a specific backpack, along with advice on selecting the best backpack for a child. Jerry Dischler, Vice President and General Manager of Ads at Google, believes this new approach to Google search will offer a delightful user experience and open up new commercial opportunities in the future.
The Rollout of Search Generative Experience
Google recently unveiled its new search engine version, the Search Generative Experience, which will be gradually released through a waitlist in the coming weeks. The tech giant plans to test the new ad placements using existing ads from traditional Google searches.
AI-Powered Assistance for Ad Creation
In addition to the AI-powered search results, Google also introduced a new conversational chatbot during its annual Google Marketing Live event. This chatbot will assist brands in creating ads by recommending headlines, specific keywords, and images based on the brand's website. Google already offers a tool that can automatically generate ads for brands. This tool will now be enhanced with generative AI capabilities, allowing it to create ads based on the context of a user's query.
The Competitive Landscape
While Google continues to lead in search advertising, Microsoft is not far behind. Microsoft has already started testing ads in its Bing AI-powered search engine and has been engaging with ad agencies since February. As the race to integrate AI into search engines heats up, it will be interesting to see how these tech giants continue to innovate and shape the future of online advertising.