The Role of AI in Assisting Marketers

In discussions with marketers, artificial intelligence (AI) is consistently at the forefront. It's evident why this is the case. For example, a recent survey by McKinsey spanning various locations, industries, and business sizes discovered that the value derived from AI has altered in recent years, with marketing and sales witnessing the largest revenue impact.

Today, the aim is to address some AI-related queries that frequently crop up in Google’s discussions and look at how Google Ads products can assist marketers in delivering the necessary results in an increasingly volatile world.

Advancements in AI are simplifying the process for marketers to consistently engage with their customers in more interconnected ways. Why is AI important for marketers? In recent years, people have overwhelmingly adopted digital platforms for virtually every aspect of their lives. We're noticing that many of these new behaviours and habits are here to stay.

Consequently, it's become more challenging for marketers to predict a consumer's subsequent move. The secret to succeeding in this new environment involves analysing enormous data volumes and responding to them in real-time. This is why Google’s enthusiastic about the opportunities AI presents for marketers.

Google is on the brink of a technological revolution in AI, which promises to deliver immense value to businesses and marketers globally, similar to the advent of the internet in the late 90s and the emergence of mobile computing in the early 2000s.

Current advancements in AI are drastically transforming how individuals interact with technology while making it simpler for marketers to consistently connect with customers. In fact, we're witnessing AI become a multiplying force for businesses by enabling marketers to stay abreast of consumer needs and trends, seize new insights and develop campaigns more rapidly with verified ROI and performance.


How is AI currently being utilised in advertisements?

Google has been at the forefront of AI development for over a decade, and AI has been instrumental to the Google Ads business — from AI-powered creatives like responsive search ads to how we optimise bids for each auction. Google has also pioneered the responsible use of AI, consistently updating their AI principles since 2018.

Google’s comprehensive language models have now improved by 50% in understanding human language. This improvement directly translates into real business results for their customers.

Over time, Google has enhanced these technologies, guided by feedback from marketers and breakthroughs in AI. For instance, advertisers who switch from exact match to broad match (Google’s AI-powered targeting option for Search Ads) in campaigns that utilise a target cost per acquisition witness 35% more conversions on average.

Performance Max is Google’s new goal-oriented campaign type, powered by AI. It aids in finding new customers and demand opportunities across all of Google’s inventory such as YouTube, Search, and Gmail. On average, advertisers who adopt Performance Max realise 18% more conversions at a similar cost per action. A prime example of this is the multinational consumer electronics retailer, Best Buy.

Best Buy sought to adapt to the changing business landscape and new consumer expectations by improving its performance with Google Ads. The team, having utilised AI applications in other areas of their business, opted to trial two of Google’s AI products: Performance Max and broad match.

Rigorous testing revealed that Performance Max aided Best Buy in increasing return on ad spend by 33%, while broad match boosted its omnichannel revenue by 42%.


How is the role of marketers evolving?

Even with the emergence of more potent AI technologies, the marketer continues to be the driving force. In fact, we believe the role of the marketer has never been more vital.

To deliver these results, the expertise of the marketer must guide the AI.

AI is a powerful facilitator that helps businesses reach their full potential by pairing the expertise of the marketer with AI's power in a cycle that continually reduces marketing costs, enhances performance, and assists in discovering new customers, regardless of how unpredictable their behaviours might be.

Google observations indicate that when this cycle — where AI and marketers learn from each other — is activated, they can multiply business results. However, for these results to materialise, it's crucial that the expertise of the marketer is steering the AI. From budgeting and bidding to audiences and creativity, the marketer’s inputs are pivotal in directing AI to deliver the best ROI and new growth avenues for your business.


What measures should advertisers take currently to prepare for an AI-driven future?

Now is the ideal time for businesses of all sizes to consider their AI marketing strategy. If you're searching for a starting point, Search remains one of the biggest untapped opportunities for advertisers. At Google, we believe AI is the technology that will assist advertisers in unleashing the power of Search. As mentioned earlier, many of these tools are already accessible today.