Posted by Valentina Izzo 5 months ago

Table Of Content

How Does AI Affect Paid Campaigns?

McKinsey Global Survey on artificial intelligence (AI) suggests that organizations are using AI as a tool to generate value. Increasingly, that value is coming in the form of revenue. 

As this data shows, AI for advertising allows you to increase your return on ad spend (revenue) and reduce the amount of money you spend on staff time and ineffective ad budgets.

Suppose we take Google Ads as an example. Before using AI and then the automation that comes with it, you needed to invest a lot of time and effort in finding keywords, devices, targeting, messaging, and bidding to get more leads, sales, and subscriptions. Work that was being done manually by humans. 

Today, all this is outdated. With AI-based solutions, you can improve the efficiency of various aspects that affect paid campaigns, not only on Google Ads but on the various platforms available. 

Budget optimization and targeting

Performance optimization is one of the prominent use cases of artificial intelligence in advertising. Machine learning algorithms can be used to analyze ad spreadsheets and get tips on optimizing them, either by automating previously manual actions or highlighting issues you didn’t know you had. 

In more advanced cases, AI can automatically manage ad performance and spend optimization, allocating budgets across channels and audiences and letting humans focus on more strategic tasks. 

Similarly, you can use AI to analyze audiences used in previous campaigns and optimize them based on past performance data. In this way, you can also identify new audiences interested in the business.

Ad creation and management

There are systems based on artificial intelligence that can create partially or completely ads for you based on your goals. This feature is already present in some social media advertising platforms, which use intelligent automation to suggest ads that you should run based on the links you are promoting.

But it also exists in some third-party tools, which use intelligent algorithms to write the ad copy for you. These systems leverage natural language processing (NLP) and natural language generation (NLG) to create texts that perform well or better than the human-written copy.

How Structured Data Can Make A Difference In PPC

Structured data is crucial for organic search but equally decisive for paid campaigns

Structured data enrich your content with the information necessary to make Google and search engines understand what you are talking about. It makes your data more accurate and more appealing. This means that when you add structured data to your website, you enrich your dataset and, by using your first-party data, you push input into ad systems that are read correctly because they contain all the required attributes and allow you to get better performance from your paid campaigns. 

We asked Frederick Vallaeys, CEO at Optmyzr, a few questions on this topic. Frederick was one of the first 500 employees at Google, where he spent ten years building AdWords and teaching advertisers how to get the most out of it as Google’s AdWords Evangelist.

Specifically, I asked Fred, how you can use structured data to optimize feeds and ad components to have better results. 

“As Google Ads become more automated, the ways we optimize PPC are changing and structured data plays a big role in that. Rather than managing details inside the ads system, we have to shift towards managing the inputs into the ads system so that the automations can handle the details correctly. 

Think of ads for example. Advertisers used to write separate ads for every ad group but now with  Responsive Search Ads (RSA), they can re-use the most powerful ad components across many ad groups while changing just a small subset of ad assets for each. In effect, ad text has become a form of structured data and in our analysis it can drive significant incremental conversions

One of our clients wanted to deliver automotive leads to their dealership clients at a lower cost. They had the structured data on the website. Through this and Optmyzr’s Campaign Automator, they were able to decrease cost per acquisition (-25%) and increase ROAS. In addition, they could save over 50 hours per month by keeping prices, colors, and trim levels up to date for their automotive customers. 

There are many other ways in which structured data impacts search advertising, from Dynamic Search Ads (DSA), to shopping ads driven by merchant feeds, local ads driven by business feeds, dynamic ads driven by ad customizers, etc. 

Knowing how to feed better structured data into the automations will be critical for continued PPC success”.

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