AI and Google Advertising: What's Next?

AI is revolutionizing Google Ads, creating new opportunities and challenges for PPC marketers. This article explores how AI is reshaping advertising and provides seven key recommendations—with added details and examples—to help you thrive in this evolving landscape.

The Impact of Generative AI on Search Volume and CTRs

AI is significantly increasing search volume on Google, but organic listings aren’t reaping the rewards. Search volume has reportedly increased sixfold, but click-through rates (CTR) have dropped by 60%. This decline results from AI-generated Overviews on search results pages (SERPs) pushing organic results further down, often below the fold.

For advertisers, this change offers a distinct advantage: ads are being placed above these AI Overviews. This prime real estate raises crucial questions:

• Will businesses allocate larger budgets to Google Ads to capitalize on these placements?
• Will companies redirect SEO investments to advertising as organic visibility declines?

The Impact of AI on CPCs

AI-driven ad placements could increase inventory, which may reduce cost-per-clicks (CPCs). However, any reduction will likely occur in campaign types like Performance Max and Demand Gen, which already offer diverse placements and lower CPCs. Traditional search campaigns may see minimal impact.

A Keyword Revival

Keywords, once perceived as less critical with the rise of AI-driven campaigns, may regain prominence. As organic traffic drops, search ads could capture more traffic. Google’s recent improvements, such as automatic inclusion of misspellings in negative keyword lists, suggest a renewed emphasis on keyword targeting.

Seven Key Recommendations for AI-Driven Google Ads Success

Let's talk tactics.

1. Stay Updated on Match Types

Broad match keywords have evolved significantly. They now rely on contextual signals like user behavior, ad group keywords, and landing page content to determine intent.

Example: Instead of relying solely on "best running shoes" as a broad match, Google's new system might match it with "top sneakers for jogging" based on user intent. This can expand reach but requires careful monitoring.

Pro Tip: Pair broad match with automated bid strategies like target CPA or ROAS to ensure efficient use of your budget.

2. Test Google Campaign Formats

AI-driven campaigns like Performance Max (PMax) aren’t optional anymore—they’re integral. These campaigns unify inventory across Google Search, YouTube, Display, Discover, and more.

Example: A retailer running a PMax campaign for "winter jackets" could see ads displayed on YouTube videos about cold-weather camping, product carousels in Search, and Gmail ads—all from one campaign.

Pro Tip: Start small by testing PMax alongside existing search campaigns, and compare performance to decide if it’s worth scaling.

3. Balance Keyword Match Types and Campaign Types

Using the right mix of match types and campaign types is critical. Test combinations like Performance Max for top-of-funnel discovery and search campaigns for intent-driven traffic.

Example: A travel agency could use Performance Max to showcase ads about "dream vacations" on YouTube, while search campaigns target high-intent queries like "best honeymoon packages."

Pro Tip: Regularly evaluate performance reports to identify the combination that drives the best ROI for your account.

4. Avoid Copy-Paste Strategies

Every campaign is unique. Strategies that work well for one account might fail in another—even if they target similar audiences.

Example: A strategy that performs well for a fitness brand selling yoga mats might flop for another selling protein shakes, due to differences in audience behavior and purchase cycles.

Pro Tip: Always test and tailor strategies. Use A/B testing to fine-tune ad copy, landing pages, and targeting for each campaign.

5. Invest in Original, High-Quality Content

With AI generating vast amounts of generic content, quality and originality have become crucial. Content showcasing experience, expertise, and personal perspective stands out to both users and Google.

Example: A blog titled "How I Climbed Mount Kilimanjaro: Gear You Need and Lessons Learned" will outperform a generic AI-written piece like "Best Gear for Mount Kilimanjaro."

Pro Tip: Integrate user-generated content, case studies, or personal anecdotes to differentiate your material and improve indexing.

6. Reevaluate Landing Pages

AI campaigns can bring traffic, but poorly optimized landing pages will hurt your conversion rates. Make sure your landing pages are fast, relevant, and tailored to ad intent.

Example: If your ad promotes a "20% off winter coats" sale, the landing page should prominently feature winter coats and the discount offer, not general apparel.

Pro Tip: Use tools like Google Optimize or Hotjar to test different layouts, headlines, and calls-to-action (CTAs) to boost conversions.

7. Prioritize Marketing Goals Over Tools

Don’t let AI and automation distract you from your core objectives. Every ad program should align with your business’s overall marketing goals.

Example: If your goal is brand awareness, focus on campaign types like Video or Display. If it’s conversions, double down on Search or Performance Max with strong call-to-action ads.

Pro Tip: Begin every campaign by asking, “How does this support our overall marketing strategy?” Strip down overly complex setups to focus on what matters.

A Reason for Optimism

AI may be reshaping Google Ads, but your website remains a vital tool. Users still need to visit your site to learn more, contact you, or complete a purchase. Now is the time to ensure your website is well-designed, fast, and equipped with engaging content that converts.

The AI Era Is Just Beginning

AI is transforming Google Ads, and the landscape will continue to evolve. To stay competitive, marketers must adapt to new tools, refine strategies, and never lose sight of the fundamentals. By implementing these recommendations, you’ll be well-positioned to navigate the challenges and opportunities AI brings to Google advertising.