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Google AI: Should You Allow Google to Create Display Ads?

by Brian Colling - October 08, 2019

Should You Allow Google to Create Display Ads?

AI is doing just about everything today. From controlling your smart thermostat to automatically generating screenplays, AI is being applied to many tasks. Earlier this year, JPMorgan Chase used an AI algorithm for creating headlines people wanted to click on. So, why not use Google’s AI to create your display ads for you?

Here’s what you need to know about Google AI and how it works.

Out with the Old and In with the New

Google’s ad framework has always been powerful, and it’s easy to see why. Google collects a lot of information on its users. If you’ve ever wanted to advertise directly to 28-year-old women with an interest in knitting who live within a 30-mile radius of New Jersey, you can. This type of user access is unprecedented and makes it easy for companies to pare advertising dollars down to the demographics most likely to buy.

You still need to know your core demographics. What if 28-year-old women weren’t as interested in your products as 42-year-old men? That’s something your market research would need to handle, and market research takes time and money. Mostly time. Enter Google’s AI.

Google AI uses its data to determine which of its users are most likely to be interested in your product. Google has a wealth of information on purchasing habits. It creates a profile of people who have been interested in your product historically and then works to connect you with other similar customers.

Google’s Smart Display Ads

Google doesn’t just figure out which customers are interested in your product. It also crafts an ad more likely to appeal to them. Google asks you to upload text, graphics, and other advertising media. It then runs these items in different combinations until it figures out which combination is most successful. Quickly creating multiple ads is a powerful draw: it’s automated A/B testing.

When you create Google smart display ads, you will upload multiple headlines, descriptions, and items of media, for Google to mix and match. You’ll have control over the actual content, but Google will have control over how that content displays.

Through Google’s Smart Display ads, you can automatically generate the ads most likely to work for your business. But it does take time: Google will need to collect information, so it can display an ad likely to get clicked on and likely to lead to a purchase or a commitment. As your ad continues to show, you’ll gather even more information about what is most effective.

Remarketing and Automatic Targeting

Since Google tracks everything (and that means everything), they’re also already tracking your customers. Google doesn’t just try to expand your reach to a similar audience. It also attempts to remarket and re-target your existing audience. Google shows ads to customers about to complete a transaction, or who have visited your site.

Marketing has long shown customers are more likely to make a purchase when they’ve more familiar with a company. Google intentionally markets to customers and people who show consideration behavior. This, theoretically, can boost customer acquisition and customer retention rates.

Saving Money through Smart Bidding

While Google does make money off your advertising dollars, it’s in Google’s best interest that you get the most results you can from those dollars. Enter: smart bidding. When you show an ad, you need to bid for the target audience. Google’s Smart Bidding feature bids higher if it’s an audience member more likely to make a purchase, or lowers bids if it’s an audience member who isn’t likely to convert.

And it doesn’t just focus on clicks: it focuses on actual conversion. That means that you get fewer people who are just looking at your site, and more people who are ready to make a commitment.

Should You Use Google’s Smart Display Ads?

Google’s Display Ads are a way for marketers to engage with their audience more effectively through the power of data patterns and analysis. With Google’s Smart Display, you’re able to better isolate audiences interested in making a purchase. It then reaches out again to customers who may have started making a purchase.

The primary advantage of Smart Display ads is time. While a marketer can eventually figure out what is most appealing and to whom, it takes a lot of time and testing. Google can facilitate and automate this process, collecting large volumes of information on your behalf, and making decisions on-the-fly.

There are also some drawbacks, too.

The Downsides to Google’s Smart Display Ads

There are a few notable issues with Google’s Smart Display ads. These issues don’t mean Google’s Smart Display should be avoided altogether, but it does mean it isn’t quite the set-and-forget system many would hope it could be.

• Duplicate names are possible. Google may view contacts lists as people acquired through the campaign. When it does this, the campaign may appear to be wildly more successful than it is.

• Loss of some campaign control. You aren’t going to be able to control who doesn’t see your ads, and you aren’t going to be able to control your ad placement. You also can’t control the devices on your ad appears. If you have strong opinions on the device placement, Google’s Smart Display may not be right for you. 

When you use Smart Display ads, you sacrifice a lot of control to Google AI. You must assume that Google AI is working in your best interests and that it knows better than you.

Google AI Conclusion

Ultimately, Google wants you to believe it’s on your side when it comes to Google Display Ads and Google AI. Google makes money when your ads are clicked on, and it has more information than anyone about your data. It’s beneficial to at least try Google’s smart ads to discover whether it gets desired results.

For more on how Colling Media helps businesses grow with Google AdWords and Google AI, contact us today.

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