Last month, Microsoft declared open war on Google in the search market with the release of its Bing Chat AI engine. That war will not just be fought with the quality of AI bots, but also in advertising. Following Microsoft's decision to use ads on Bing Chat search results, Google says it is taking a similar route by using ads for its upcoming Bard AI search engine.
According to Google, it will release a tool that allows Google Ads to generate assets for ads. With AI driving ads, Google says companies can be assured their ads will reach the right audience. The company admits there are challenges to achieve this.
Google points out it will create new headline descriptions. As announced at Google Marketing a year ago, the created assets capability offers responsive ads that will deliver more accurate selections to users.
Advertisers can tap into automatically created assets in the coming weeks as part of an open beta. The company says people who have been testing the feature have seen a 2% increase in conversions when compared to responsive ads.
The update for Google Search also adds the following capabilities:
- “Ad Strength will consider current assets and created assets when determining a rating.
- Assets that are created automatically will use provided inputs such as keywords to improve headlines and relevance.
- Any automatically created assets you don't want to include in your ads can be removed.”
Bing Chat Ads
Last month, Microsoft's Bing Chat sent shockwaves through the tech world. It is a statement from Microsoft that it is going directly after Google in the search market. However, Microsoft then also revealed it is also targeting Google in terms of advertising.
According to unnamed sources cited in the report, Microsoft has been testing AI Ads with partners in the Asia Pacific since late 2022 and plans to roll out the feature globally in mid-2023. What is interesting about this claim is Microsoft's AI ads claim to improve click-through rates by as much as 25%.
That is significantly higher than Google's conversion claims. Microsoft hopes that AI Ads will give Bing an edge over its competitors and help it gain more market share.
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