Adapting to AI: Major Impacts on Google Advertisers and How to Handle Them

As a paid search marketer in the era of Generative AI getting your Ads to rank on SERPs can be a tough nut to crack. 

With a visible uptick in zero-click results, there have been profound effects on both organic and paid search strategies.

As an advertiser who values staying relevant and on top of the game, it’s crucial to understand how to thrive and not just survive in the changing search landscape.

We at Mavlers contacted our subject matter expert (SME), Amit Roy, who was kind enough to walk us through the transforming landscape of search and paid marketing, how to navigate it, and its implications for advertisers. 

So, in today’s blog, here’s what you stand to gain invaluable clarity on:

• Generative AI’s impact on the changing search landscape
• AI Impact on Google advertisers 
• Recommendations for navigating the AI curve

By the end of this blog, you will be better equipped to handle the AI curveball that’s coming your way (or, should we say, already is?) and up your Google advertising game. 

Let’s explore!

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Generative AI’s impact on the changing search landscape

Generative AI has significantly changed how search engines operate and how users interact with search results. Here’s an insight into its varied impact on the search landscape:

1. Quick answers directly on search pages

Generative AI enables search engines like Google to provide instant answers to users’ questions right on the search results page. These are called “zero-click results” because users get the information they need without clicking on any links. For example, if you search for “How tall is the Eiffel Tower?” Google can show you the answer directly at the top of the page.

2. AI-powered summaries/ AI Overviews

Search engines now use AI to create short summaries or overviews of the content from various websites. This means that instead of clicking on a link to read a full article, users can often find a brief summary of the information they’re looking for right on the search results page. This AI Overviews feature is increasingly common, appearing in about 15% of all search queries (though it varies greatly by industry).

3. Decrease in organic traffic

Because more information is available directly on the search results page, fewer users are clicking through to visit individual websites. This has led to a decline in organic traffic, which is the number of visitors coming to a website through unpaid search results. Reports suggest a 30% drop in organic traffic due to these AI features.

4. Premium ad placements

AI-generated summaries and quick answers offer new spaces for placing ads. These premium ad spots are valuable because they appear at the very top of the search results, ensuring high visibility.

5. Adjusted advertising strategies

With these changes, advertisers are rethinking their strategies. They might shift part of their budget from traditional SEO (which aims to improve organic search rankings) to PPC (pay-per-click) advertising. This shift helps them maintain visibility even if organic traffic is down.

6. Enhanced keyword importance

Despite the changes, search keywords still play a crucial role. Google has improved how it matches search queries with relevant ads, making keywords even more important for advertisers. Advertisers can ensure their ads appear in relevant search results by focusing on the right keywords.

7. Broader campaign approaches

Advertisers are using a mix of different campaign types to adapt to the changing landscape. This includes traditional search ads, display ads, and newer formats like Performance Max (PMax) campaigns, which use AI to optimize ads across all of Google’s channels. Want to know more about PMax campaigns? Check out our detailed blog!

To surmise, Generative AI has made search engines smarter and more efficient at providing immediate answers. This benefits users by giving them quick access to information but challenges website owners and advertisers by reducing organic traffic. 

Now, let’s dive into AI’s impact on the advertising world. To stay visible and effective, advertisers are exploring new ad placements and strategies, emphasizing the importance of keywords, and leveraging a variety of campaign types.

AI Impact on Google advertisers 

AI-powered changes in Google’s search landscape are significantly affecting how advertisers operate. Here’s a straightforward breakdown of these impacts on the Google advertisers:

1. More immediate answers on search pages

AI allows Google to provide instant answers to user questions right on the search results page. This means people often get the information they need without clicking on links to visit websites. For advertisers, this means fewer opportunities to attract visitors through organic search results.

2. Decrease in organic traffic

Because users can find quick answers directly on Google, fewer people are clicking through to websites. This decline in organic traffic means that businesses relying on free search engine traffic see fewer visitors, potentially leading to fewer sales or leads.

3. New ad placement opportunities

Google is creating new spots for ads, especially in areas where AI-generated answers appear. These new premium ad placements are at the top of the search results, making them highly visible and attractive to advertisers. However, these spots can be more expensive.

4. Increased cost considerations

With the introduction of premium ad placements, advertisers might need to spend more to secure top spots. This increase in costs requires careful budgeting and consideration of whether the higher expense will lead to a good return on investment.

5. Shifting budgets from SEO to PPC

Due to the decline in organic traffic, some businesses are shifting part of their marketing budget from SEO (which focuses on improving unpaid search rankings) to PPC (pay-per-click) advertising. This shift helps maintain visibility despite the drop in organic clicks.

6. Emphasis on keywords

Despite these changes, keywords remain crucial. Google’s improvements in matching search queries with relevant ads mean that using the right keywords is still key to appearing in search results. Advertisers need to focus on selecting and optimizing keywords to ensure their ads reach the right audience.

7. Diversifying ad campaigns

Advertisers are using a mix of campaign types to adapt to the new landscape. This includes traditional search ads, display ads, and newer formats like Performance Max (PMax) campaigns. PMax uses AI to optimize ads across all of Google’s channels, helping reach a broader audience.

8. Leveraging automated bidding

Automated bidding strategies, such as Target CPA (Cost-Per-Acquisition) and Maximize Conversions, use AI to adjust bids in real-time. This helps advertisers get the most out of their budgets by automatically optimizing for the best performance.

9. Integration with CRM data

Connecting Google Ads with Customer Relationship Management (CRM) data can provide deeper insights into customer behavior. This integration allows for more personalized and effective ad targeting, improving the chances of reaching and converting the right audience.

In summary, AI-powered changes in Google’s search landscape make it harder for businesses to rely solely on organic traffic. Advertisers need to adapt by exploring new ad placements, managing costs, focusing on keywords, and diversifying their campaigns. 

By leveraging AI tools and integrating data, advertisers can stay competitive and make the most of the evolving search environment.

In the next section, we will explore these strategies in detail.

Recommendations for navigating the AI curve

The evolving AI-powered search landscape presents challenges for advertisers, but there are several effective strategies to mitigate these impacts and maintain a strong presence. Here are six strategies advertisers can use:

1. Optimize for keyword match types

• Leverage broad, phrase, and exact match types:

• Use a combination of broad, phrase, and exact match types to capture a wider range of search queries.

• Broad match can help discover new relevant terms, while phrase and exact match ensure precision targeting.

Google Ads uses a set of four priority levels to determine which ads to show for a given search query. These priority levels are as follows;

Top priority: Exact match keywords

Keywords that match the search query exactly receive the highest priority.

Second priority: Phrase, broad match, or identical search themes

Keywords that are a phrase match, broad match, or have search themes identical to the query are given the next highest priority.

Third priority: AI-based keyword relevance

Google’s AI assesses keyword relevance to prioritize ads when there are no exact or identical matches.

Fourth priority: Ad rank

The final priority level considers the ad rank, which is a combination of bid amount, ad quality, and expected impact.

This is how you can apply the priority rules;

Rules 1 & 2: These apply when you have a keyword or search theme that exactly matches or closely matches the search term, including spell-corrected terms.

Rules 3 & 4: These come into play when there is no exact match, and multiple potential matches are available to enter the auction.

For a more detailed understanding, check out the priority metrics shared by Search Engine Journal in their latest article.

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• Monitor and adjust regularly:

• Regularly review performance data and adjust match types and bids to optimize for the best results.

• Use negative keywords to exclude irrelevant traffic and improve the quality of clicks.

2. Experiment with new ad formats

• Utilize Performance Max (PMax) campaigns:

• PMax campaigns leverage AI to optimize across all of Google’s ad channels, providing broader reach and better performance insights.

• Test PMax alongside traditional campaigns to see which performs better for your goals.

• Explore Responsive Search Ads (RSAs):

• RSAs allow for multiple headlines and descriptions, which Google’s AI mixes and matches to find the best-performing combinations.

• Continuously test and update RSAs to improve ad relevance and engagement.

3. Integrate automated bidding strategies

• Adopt AI-driven bidding:

• Use automated bidding strategies like Target CPA (Cost-Per-Acquisition) and Maximize Conversions to let AI optimize bids in real-time.

• These strategies help ensure that ads are shown to users most likely to convert, maximizing ROI.

• Set clear goals and monitor performance:

• Clearly define your conversion goals and regularly monitor campaign performance to make necessary adjustments.

• Use performance data to refine bidding strategies and improve overall campaign efficiency.

4. Focus on search intent

• Analyze user intent:

• Invest in understanding the different types of search intent (informational, navigational, transactional) relevant to your business.

• Use tools like Google Analytics and keyword research tools to gain insights into user behavior and preferences.

• Create targeted campaigns:

• Tailor your ads and landing pages to align with specific search intents, ensuring that users quickly find the information they need.

• Develop content that addresses common questions and needs within your industry to attract and engage your audience.

5. Maintain strong campaign fundamentals

• Organize campaign structure:

• Keep your campaign structure well-organized with clear ad groups, relevant ads, and targeted keywords.

• Regularly audit and optimize your campaigns to ensure they align with your overall marketing strategy.

• Focus on Quality Scores:

• Improve ad relevance, landing page experience, and expected click-through rate to boost your Quality Score.

• Higher Quality Scores can lead to better ad placements and lower costs per click.

6. Integrate CRM data with Google Ads

• Connect CRM systems:

• Integrate your Customer Relationship Management (CRM) system with Google Ads to provide AI with comprehensive customer journey data.

• This integration allows for more personalized ad targeting based on past interactions and behaviors.

• Utilize audience segmentation:

• Segment your audience based on CRM data to create more targeted and effective ad campaigns.

• Use this data to tailor messaging and offers to different customer segments, enhancing engagement and conversion rates.

Let’s understand how to implement these strategies successfully with an example for advertisers in the healthcare industry.

1. Optimize for keyword match types

Example:

A healthcare provider specializing in pediatric care wants to attract parents searching for children’s health services.

Leverage broad, phrase, and exact match types:

• Broad match: Use broad match keywords like “child health services” to capture a wide range of related searches.

• Phrase match: Use phrase match for keywords like “pediatric care near me” to ensure the ads appear for specific queries.

• Exact match: Use exact match for highly targeted keywords like “best pediatrician in [city]” to attract high-intent users.

Monitor and adjust regularly:

• Regularly review search term reports to identify new keywords and negative keywords to refine targeting.

• Adjust bids based on performance data to maximize ROI.

2. Experiment with new ad formats

Example:

The healthcare provider wants to promote a new telehealth service.

Utilize Performance Max (PMax) campaigns:

• Launch a PMax campaign to promote the telehealth service across search, display, YouTube, and more.

• Use AI-driven optimization to reach a broader audience and analyze performance across different channels.

Explore Responsive Search Ads (RSAs):

• Create RSAs with multiple headlines, such as “Book a Telehealth Appointment” and “Virtual Pediatric Consultations,” along with various descriptions.

• Let Google test different combinations to find the most effective ads.

3. Integrate automated bidding strategies

Example:

The provider aims to increase online appointment bookings.

Adopt AI-driven bidding:

• Implement target CPA bidding to optimize bids for maximum conversions at a specified cost per acquisition.

• Use Maximize Conversions bidding to let Google automatically adjust bids to get the most bookings within the budget.

Set clear goals and monitor performance:

• Define clear goals for the number of appointments and cost per appointment.

• Monitor campaign performance and adjust CPA targets and budgets based on data.

4. Focus on search intent

Example:

The provider wants to address different health concerns parents may have.

Analyze user intent:

• Use tools like Google Analytics to understand common search intents related to children’s health, such as informational searches about symptoms, navigational searches for nearby clinics, and transactional searches for booking appointments.

Create targeted campaigns:

• Develop separate ad campaigns for different intents, such as educational content for symptom-related searches, clinic location ads for navigational searches, and appointment booking ads for transactional searches.

5. Maintain strong campaign fundamentals

Example:

The provider wants to ensure their campaigns are well-organized and effective.

Organize campaign structure:

• Structure campaigns by service type (e.g., general pediatric care, telehealth, vaccinations).

• Use relevant ad groups within each campaign to target specific keywords related to each service.

Focus on Quality Scores:

• Improve ad relevance by ensuring that ads and landing pages are closely related to the keywords and user queries.

• Enhance landing page experience by providing clear, helpful information and easy navigation to book appointments.

6. Integrate CRM Data with Google Ads

Example:

The provider wants to improve ad targeting based on patient history.

Connect CRM systems:

• Integrate the CRM system with Google Ads to use patient data for more personalized ad targeting.

• Use CRM data to create custom audiences, such as parents who previously booked appointments or those who inquired about specific services.

Utilize audience segmentation:

• Segment the audience based on factors like the age of children, types of services used, and past interactions.

• Tailor ad messaging to different segments, such as vaccination appointment reminders or new telehealth service promotions.

The road ahead 

Here’s what you should read next ~ How Search Is Set To Change With Google’s Keynote I/O Update 2024.