Using AI in Google Ads – Embracing the AI Revolution

Optimizing Your Google Ads for Artificial Intelligence 

The digital advertising landscape is constantly transforming, and at the forefront of this evolution is the increasing power and prevalence of Artificial Intelligence (AI) on the Google Ads platform. For businesses aiming for optimal online visibility and growth, understanding and embracing this AI-driven approach is no longer a future concept – it’s a present-day imperative.

At City Ranked Media, we recognize that adapting to these changes can raise questions, especially if you’re accustomed to older and now outdated campaign management methods. This shift towards AI isn’t just a fleeting trend; it represents a fundamental change in how Google’s sophisticated algorithms operate to connect your business with the right audience to maximize your desired outcomes, primarily conversions.

The Paradigm Shift: From Manual Control to AI-Powered Precision

Think back to how Google Ads campaigns were often managed. Agencies like ours dedicated significant time to meticulously selecting granular keywords, manually adjusting bids based on historical data and mathematical estimations. While this approach historically yielded results, the sheer volume and velocity of data in today’s digital world have rendered it wildly less efficient.

AI has ushered in a new era. Google’s intelligent systems can now analyze vast streams of real-time data signals, far exceeding human processing capabilities. This allows for incredibly precise decisions regarding when and where to display your ads, all with the ultimate goal of driving conversions that align with your business objectives.

Why an AI-Driven Google Ads Strategy is Crucial for Your Business Today:

• Unprecedented Efficiency: AI algorithms react to market fluctuations and user behavior with lightning speed, far surpassing the capabilities of manual adjustments. This leads to faster optimization and a more strategic allocation of your advertising budget.
• Expanded Audience Reach: AI can identify and target potential customers that traditional methods might overlook. By analyzing complex patterns and user journeys, AI broadens your reach to valuable new audience segments.
• Enhanced Campaign Performance and ROI: The primary objective of your Google Ads campaigns is likely to generate leads, sales, or other valuable conversions. AI-powered bidding and ad placement dynamically adjust based on real-time probabilities of conversion, aiming to deliver higher conversion rates and a stronger return on your investment. Crucially, our role as your agency involves establishing clear conversion markers within Google Ads, effectively “training” the AI on what constitutes a valuable lead or conversion for your business.
• Future-Proofing Your Digital Presence: Google is continuously investing heavily in AI-driven features within its advertising platform. Embracing this approach now ensures your campaigns remain competitive, adaptable, and positioned to leverage the latest technological advancements as more will certainly be on their way.

The Evolving Role of Your Digital Marketing Agency in the Age of AI

As AI takes on more of the tactical execution within Google Ads, the role of your digital marketing agency has undergone a significant transition. We move from being primarily focused on manual adjustments to becoming strategic partners who guide and leverage the power of AI to achieve your unique business goals. 

Here’s how we, as a digital agency, add value in this AI-driven environment:

• Strategic Conversion-Focused Goal Setting: We collaborate closely with you to define clear, measurable objectives, with a strong emphasis on conversion-based marketing. We then translate these objectives into actionable inputs for the AI systems, effectively training the platform’s AI on what is considered a good lead or conversion for your business.
  • Example: City Ranked can train AI on the differences between a phone call to your business versus a phone call from a new potential customer looking for a quote from your business through use of an Interactive Voice Response system (IVR). Imagine being able to optimize your conversions towards real people, in your target area, who are looking for the services you provide? We help train AI to send real prospects who are shopping for your services, rather than focusing on clicks and calls that may or may not be real leads…we don’t optimize to your current customers or other non-sales inquiries calling into your business.
• Crafting High-Impact Creative Assets: While AI optimizes the delivery of your ads, the quality and relevance of your ad copy and visuals remain paramount. Our team focuses on creating compelling content that resonates with your target audience and drives engagement.
• Data-Driven Analysis and Strategic Insights: We don’t simply rely on the AI’s output. We leverage sophisticated AI-powered software and our expertise to monitor campaign performance, identify emerging trends within vast datasets, and provide strategic insights that further refine our approach to managing your account. This software alerts our teams to the smallest changes in the Google Ads auction (and other major platforms), leveraging that data to optimize towards your goals.
• Ensuring Brand Safety and Consistent Messaging: We act as a critical safeguard, ensuring your ads appear in appropriate contexts that align with your brand values and effectively communicate your unique selling propositions.
• Expert Guidance and Continuous Adaptation: The digital marketing landscape is dynamic. We stay at the forefront of AI advancements within Google Ads, continuously adapting our strategies and providing expert guidance on how to best leverage new features and maintain a competitive edge.
• Providing Clarity and Transparency: We understand that entrusting campaign management to an algorithm can feel less direct, giving less control. We are committed to providing transparent reporting, clearly explaining key performance metrics, and ensuring you understand how AI is working in tandem with our management to achieve your desired goals.

A Journey of Innovation: The Gradual Integration of AI into Google Ads

The shift towards AI in Google Ads has been a progressive evolution, marked by key feature releases on the Google Ads platform:

• Early Stages (Mid-2010s): Initial integration of machine learning focused on automated bidding strategies like Enhanced CPC, while agencies retained significant manual control.
• Smart Bidding Takes Center Stage (2016-2018 Roll-out): The rise of Smart Bidding strategies (Target CPA, ROAS, Maximize Conversions) signaled a greater reliance on Google’s algorithms for real-time bid adjustments based on conversion data. Here, you bid on desired outcomes such as conversions or ROI rather than older traditional metrics such as cost-per-click (CPC).
• Emphasis on Broad Match and Close Variants (2018-2021 Roll-out): Expansion of close variant matching for exact and phrase match keywords reduced the need for hyper-granular keyword lists, indicating a move towards broader targeting.
• Performance Max Campaigns (Launched 2021): This marked a significant shift, with AI optimizing across all Google ad inventory based on provided “audience signals,” granting the system greater autonomy to serve your ads in a variety of ways and to a larger audience.
• Broad Match as the Default (June 2024): The declaration of broad match as the default for new Search campaigns underscores Google’s confidence in AI’s ability to effectively manage campaigns with less manual keyword control.
• Increased Focus on “Search Themes” (Around 2023-2024): Emphasis on broader “search themes” within Performance Max further highlights the move away from highly specific keyword targeting.

Looking Ahead: Partnering for AI-Powered Success

The integration of AI into Google Ads presents a powerful opportunity for businesses to achieve more efficient, expansive, and effective advertising results. While the tactics of campaign management have evolved, the fundamental need for strategic direction, compelling creative, and insightful data analysis – the core strengths of a skilled digital marketing agency – remains paramount.

Agencies and businesses that proactively embrace AI, providing it with quality inputs and clear objectives, will be optimally positioned to leverage its power in the Google Ads auction, both now and as this technology continues its rapid evolution.

At City Ranked, we are committed to guiding you through this exciting new era of Google Ads. We combine our human expertise with the power of AI to drive sustainable growth and achieve your business objectives. Let’s discuss how we can leverage the AI revolution to elevate your Google Ads performance.