Google Ads in 2024: how contextual advertising with AI works

Artificial intelligence is penetrating various areas, including Google contextual advertising settings. The Google Ads platform has implemented machine learning algorithms that analyze large amounts of data, such as user behavior, demographics, and search history. It allows us to make accurate decisions to optimize advertising campaigns. Today, the role of artificial intelligence in Google Ads is vital, and PPC specialists are constantly monitoring new updates. In this article, we will discuss familiar and new AI features worth paying attention to.

Search campaigns and artificial intelligence: the main nuances

In 2024, Google Ads will rely even more on artificial intelligence to customize ads on the contextual display network. Machine learning algorithms analyze vast amounts of data, including user behavior, interests, demographics, and search history. As a result, AI can accurately predict which ads best suit each user, increasing the likelihood of conversion. 

Key AI features in Google Ads include:

• Automatic bid optimization. AI independently adjusts bids in real-time to achieve maximum results. Adjustments during the auction are made based on digital signals, demographic data, and user requests to maximize results.
• Responsive search ads (RSA). It allows algorithms to combine different variants of headlines, descriptions, and creatives during the auction to create the most relevant ad for a particular user.
• Keyword matching. There are different types of keyword matching. In particular, broad match increases your reach by comparing queries contextually related to your keyword. It helps to increase the number of clicks but can lead to the attraction of untargeted traffic.

These tools generally allow advertisers to adapt their strategies faster, achieving greater accuracy and effectiveness in PPC advertising.

Artificial intelligence functionality in Performance Max

The Performance Max tool allows you to run ads across the Google ecosystem, such as search ads, display ads, Discovery Demand Gen campaigns, app ads, etc.

Google has introduced an update to Performance Max that includes several new AI-powered features. These features aim to improve the efficiency of advertising campaigns and increase their ROI. However, these tools are not yet available in Ukraine.

The new AI-based features include:  

• Asset Generation. The tool allows you to quickly create a set of assets when launching or editing a campaign in just a few clicks.  
• Customer Value mode. This feature is designed to simplify customer acquisition for advertisers who have chosen the appropriate campaign goal.
• Customer retention goal. It can help regain lost customers with targeted strategies based on analyzing user behavior patterns detected by AI.
• Detailed demographics. This option provides detailed information on users’ age and gender, which allows you to improve ad targeting and attract a better audience.
• Budget pacing insights. It allows you to track advertising costs in real time and predict the effectiveness of conversions. This tool helps advertisers adjust their spending strategy and optimize campaigns on time.
• Account-level IP address exclusions. It allows you to exclude specific IP addresses (such as your company’s or client’s IP) to avoid unwanted ad interactions and reduce costs.
• Final URL expansion. This option allows you to test changing the final URL, helping to determine whether using a more relevant landing page will lead to better results.

Conclusions

In general, artificial intelligence greatly simplifies and speeds up the process of setting up and running contextual advertising in Google Ads, helping to optimize campaigns and improve their results. However, it is worth contacting specialists to get the maximum effect from the launch of contextual advertising. Lanet CLICK digital agency provides qualified services for managing advertising campaigns, ensuring efficiency and a high return on your investment. Therefore, contact us if you are interested in professional support of contextual advertising.