How AI Drives PPC Performance

• Blockchain Council
• November 18, 2024

In recent years, AI has become more embedded in Pay-Per-Click (PPC) advertising. It is changing how campaigns are managed and optimized. As AI technology keeps progressing, PPC tools are now more efficient at delivering improved outcomes, lowering manual work, and providing clearer insights.

AI-Driven Improvements in Google Ads

Google Ads has introduced several new features that use AI to enhance campaign management. One of the major changes is the addition of AI-powered image editing tools across various campaign types like Search, Display, and Demand Generation. Advertisers can now upload multiple images, which Google’s AI can then modify by adding or removing elements, changing backgrounds, or adjusting the size to fit specific formats. This makes the design process easier, reducing the need for manual effort and helping create visually appealing ads quickly.

On top of that, the new conversion reporting and asset performance tools in Performance Max campaigns offer detailed insights into which creatives—whether images or headlines—are performing best. This method, which relies on data, allows advertisers to adjust their content. It enhances ad performance without relying on trial and error.

Earning the Certified AI Expert™ certification can help you see how AI improves decision-making in various industries, just like it enhances PPC strategies.

Microsoft’s Generative AI and Copilot

Microsoft is also advancing within its advertising platforms.. The addition of generative AI, specifically through the Copilot feature, has boosted audience engagement. Ads powered by Copilot create more personalized experiences by better aligning with user conversations, leading to higher click-through and conversion rates. Data from October 2024 shows that Copilot-enhanced ads saw a 69% increase in click-through rates and a 76% jump in conversions compared to traditional ads.

This personalized approach is important because it helps advertisers create ads that resonate more with their target audience, leading to better campaign performance overall. Additionally, the AI tools within Microsoft Ads offer productivity features like diagnostics and performance snapshots. These tools provide clear metrics, allowing advertisers to assess and improve their campaigns more efficiently.

If you’re looking to better understand AI’s impact in PPC, the Master AI Learning Path can give you the insights needed to optimize ad performance.

Updates to Google Performance Max

Google’s Performance Max campaigns have also seen several updates aimed at giving advertisers more control. One of the key changes is the introduction of campaign-level negative keywords. This new feature lets advertisers exclude irrelevant search terms, which helps reduce wasted ad spend and improves the quality of traffic. In the past, managing search terms in Performance Max campaigns required a lot of manual effort, but now advertisers can make quicker adjustments, which makes the campaigns more responsive and cost-effective.

Additionally, Google has rolled out impression share reporting for Performance Max campaigns. With this functionality, advertisers can see how their ads perform against others in similar categories. A low impression share may indicate a chance to improve visibility and boost results. These tools provide more insights for advertisers, letting them change their strategies based on up-to-date information.

AI and Video Content

Video content continues to grow in importance for digital advertising, and both Google and Microsoft have introduced AI-powered tools to streamline video ad creation. Google has expanded its video-enhancing AI tools to more campaign types, making it easier for advertisers to automate video resizing and editing. These tools save time and effort in creating high-quality video ads, which are becoming more crucial for engaging audiences on platforms like YouTube.

Microsoft’s Copilot is also stepping up its game when it comes to video content by improving impressions for Product Ads during conversations. This AI-driven approach enables advertisers to meet the increasing demand for video content, ensuring that their ads remain timely and relevant.

Using AI in PPC means keeping up with the latest trends. The Unlimited Learning Subscription (AI) keeps you updated on new tools to stay competitive in digital marketing.

TikTok’s Entry into Search Ads

TikTok is making waves in the PPC space by introducing its Search Ads Campaign feature in the U.S. This new offering positions TikTok as a competitor to Google in the search advertising arena. What makes TikTok’s approach unique is its ability to target users based on search intent, helping advertisers reach younger audiences who are increasingly turning to TikTok as a search engine. Initial findings suggest that using TikTok Search Ads alongside In-Feed Ads has boosted conversions by 20%.

When working with AI in PPC, writing clear instructions is key. Becoming a Certified Prompt Engineer™ can sharpen these skills and improve campaign results.

Challenges and Limitations

Even with the advantages that AI brings to PPC, there are still challenges to consider. One concern is the risk of creating overly generic ads. If advertisers rely too much on AI for creative tasks, it can lead to ads that don’t stand out, making it harder to capture attention. Balancing automation with human input is key to keeping ads fresh and engaging.

Another challenge lies in the ethical and privacy issues tied to AI use in advertising. As AI tools depend more on user data for optimizing ads, advertisers need to be mindful of privacy laws and user preferences. Failure to navigate these carefully could harm brand reputation or infringe on personal rights.

Final Thoughts

AI is driving new ways to enhance PPC campaigns, focusing on automation, customization, and efficiency. Advertisers now have access to tools that help them refine campaigns in real-time, without needing to be tech experts. From Google’s AI-driven image and video tools to Microsoft’s Copilot, AI is reshaping how ads are created and managed.

With AI becoming central to PPC campaigns, getting the Certified AI Developer™ credential helps you design more efficient systems to enhance ad targeting.