Google, which is owned by Alphabet, has announced that it will be launching two new capabilities for advertisers that are powered by artificial intelligence.
These features will automatically determine the optimal ad placements for businesses across the technology company’s services.
In recent months, artificial intelligence (AI) has been at the forefront of the technological sector as Google and other businesses have built innovative chatbots that can answer consumers in free-form dialogues. Additionally, AI is rapidly being used to serve advertising, which is a significant contributor to the income of companies.
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How Google is Implementing AI
While Google has in the past launched AI tools for advertisers, the company is now leveraging the technology to assist firms in accomplishing more precise goals related to their advertisements. One of the new capabilities, which is dubbed Demand Gen, will use artificial intelligence to position an advertiser’s photo and video advertising across numerous products. These products include Gmail, the YouTube feed, and Shorts, which is YouTube’s counterpart to the popular short-form video app TikTok.
AI will eliminate the need for advertisers to consider where they should place their ads, and the technology will instead focus on identifying placements that are “shiny, visual, and immersive,” according to Vidhya Srinivasan, a vice president at Google and the general manager of the company’s advertising division.
According to Google, the second new feature will employ AI to locate the ideal ad placements with the objective of increasing the number of times users view a brand’s video advertisements. According to Srinivasan, preliminary testing reveals that using the new tool resulted in an average increase of 40 per cent in the number of video views obtained by brands.
She went on to say that by removing some of the “grunt work” that advertisers have to do through the use of AI, firms will be able to concentrate more on their marketing strategy and storytelling.
Microsoft and Google test AI
According to Reuters’ interviews with ad buyers, Alphabet’s (GOOGL.O), Google, and Microsoft’s (MSFT.O) Microsoft are injecting advertisements into AI projects without giving participants the chance to opt out of participation. This strategy has already angered several brands and runs the danger of more criticism from the industry.
Both of these digital behemoths are racing to modernise their search engines with artificial intelligence that is capable of generating written responses to open-ended questions. According to MAGNA Research, a market that is expected to increase by 10% to $286 billion this year will experience a paradigm shift as a result of this process since it will affect how advertisers connect with consumers through advertisements displayed on search results.
According to the firm, Microsoft is doing experiments with advertisements within the Bing AI chatbot, which began rolling out to customers in February. These experiments involve moving certain standard search advertisements and inserting them into the AI replies.
Jerry Dischler, Google’s general manager of advertisements, stated in an interview that the technology firm would also use existing search ads to experiment with ad placements within the AI search snapshots, which is an early-test feature known as Search Generative Experience that was made available for the first time last month. According to Google, advertisers do not currently have the option to opt out of the test.
Both businesses have stated that they are now in the preliminary stages of testing advertisements in generative AI features and that they are actively working with advertisers and collecting their input.