Automation has been a focal point in discussions within the PPC community this year.
Two prominent AI developments, Performance Max (PMax) and Search Generative Experience (SGE), are poised to revolutionize digital search marketing.
PMax: A new campaign type that allows advertisers to run ads across all Google networks, from YouTube search to Maps, within a single campaign.
EMS: A boxed AI-generated answer to a search query that appears above Google search results, including links, images, and a conversational mode for follow-up questions.
In an exclusive interview with Search Engine Land, Susie Vowinkel, CEO of Google Travel, provides insight into what advertisers can expect from these products as we move into 2024, addresses concerns and offers guidance to maximize their effectiveness for optimal results.
Change from manual to automation
Since its official launch in July, Google’s PMax has gained strong adoption in the digital marketing community. However, there is still room for improvement. Vowinkel emphasized that those hesitant to transition from manual methods may be missing out on important opportunities.
“I’ve spent a lot of time with travel advertising over the last couple of months, and everyone’s talking about what they’re doing with advertising on the AI front, so people understand the potential of our AI solutions. However, we still have room to grow in terms of adoption.” “Some advertisers are still trying to do this work manually when our AI solutions can really help them.” “While there is strong adoption, there is definitely more opportunity ahead.”
Unlocking the full potential of PMax
Detailing the reasons why advertisers should move away from manual marketing strategies to automated ones, Vowinkel highlighted:
“PMax uses your assets and the information you provide to reach consumers in the right way on the right platforms and with the right message.” “It also takes a bit of guesswork to try to understand changing seasonal behaviors—for example, travel in the summer may differ from travel during the holidays. Using PMax can save you from trying to manually figure out and understand what the that you have to guide.
Vowinkel went on to present a case study showing how global airline Lufthansa successfully achieved its high growth targets for the year by utilizing PMax, achieving:
A 45% increase in customer acquisition. A 59% increase in bookings. A 27% reduction in cost per share.
According to Vowinkel, PMax helped Lufthansa achieve these results by taking the guesswork out of identifying and reaching its target audience effectively.
Control concerns
PMax campaigns stand out as one of the most automated types of Google Ads. However, for some marketers, the level of control handed over to AI can be unsettling and has raised some concerns.
Addressing this issue, Vowinkel said:
“PMax was designed to remove some of the need for control.” “It allows people to not have to manually try and figure it out [shifts in consumer behaviour]. For example, why one holiday destination was more popular last year and a different one is increasing interest this year. These things are very hard to anticipate.” “So PMax was designed to help people not have to understand so much and let the AI figure it out for them. That’s why there’s less control built into the product.”
Traps PMax
Although PMax is gaining popularity among sellers, not everyone is confident in its capabilities, as results can vary significantly. Addressing common pitfalls with PMax campaigns, Vowinkel explained:
“First, because it’s a newer product, we have to wait for that growth and adoption, and then comes the deeper understanding of how the product works.” “Secondly, a very important factor when it comes to PMax is what you put into it—what you put into the product will help the outputs.”
Tips for using PMax
By leveraging PMax, Vowinkel suggested the following actions:
Set strong goals. It incorporates a wide range of visual and active elements. Use relevant audience lists.
Vowinkel noted that advertisers who follow these three steps have experienced “huge success” and enabled AI to “work most effectively.”
Changes for 2024
In 2024, Google intends to further improve the PMax product based on vendor feedback. The main goal of the development is to explore new ways for advertisers to improve the input they provide to PMax, recognizing that the output of the product is only as effective as the input it receives.
Vowinkel said:
“We are thinking about how we continue to work with partners on the quality of contributions and how PMax will continue to achieve these goals.” “That’s where we’ll continue to see the product evolve as we head into 2024 and beyond.”
The arrival of SGE
While SGE is currently in an experimental phase, SEOs anticipate a significant impact on websites once it is officially launched. PPC marketers should also be prepared for an effect on advertising, as Google recently tested a new SGE ad format last month.
Commenting on what advertisers can expect, Vowinkel added:
“We don’t know exactly what the advertising environment will look like or how it will be incorporated into SGE.” “When we think about AI solutions, it’s definitely one of the most exciting things to come, but we just don’t know what it’s going to look like.” “I encourage everyone who is interested to play with our AI solutions – it’s exciting to experiment with, but they’re just that, experiments, at this point.”
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The future of SGE and Google Ads
While Vowinkel couldn’t provide extensive details on what advertisers can expect when the Generative Search Experience (SGE) rolls out for general availability, he emphasized that there are plenty of reasons for advertisers to be excited about what it has to offer in 2024.
“I think it might be an aggressive timeframe to say that we’ll know exactly what an advertising environment will look like within SGE [in a year’s time]. We’re a little ways off on that front.” “But advertisers should be excited because we’re continuing to bring more experiences and develop our understanding of inputs.” “This will help us evolve what the future will look like.”
deep dive. Read Search Engine Land’s PMax optimization guide for tips on how to improve your campaign performance and our tips on how to prepare for Google’s SGE for helpful tips.
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