Google’s new AD strategy: Integrated ADs in AI-generated responses

Big tech companies like Microsoft and Google are finding ways to make money from AI chatbots.

They are introducing ads into the chatbot experiences.

On Google’s ADS and Commerce page, they provide an insight into how ads are integrated into their generative AI feature.

When users search for a specific item, such as a bike, the AI provides relevant information and product recommendations.

At the same time, dedicated slots on the page display ads.

This strategy enables companies to monetize the chatbot service and generate revenue through advertising.

During Google’s Marketing Live event for advertisers, the company announced upcoming changes to its AI-powered snapshot and conversational mode.

In the near future, Google will experiment with ads that are seamlessly integrated within these features.

Let’s say a user is searching for healthy recipes using a generative AI feature.

As they explore different recipes and refine their search to focus on vegetarian options, they might come across a personalized ad from a grocery delivery service offering a discount on fresh organic produce for vegetarian cooking.

The ad will be clearly labeled as “Sponsored” to maintain transparency and distinguish it from the AI-generated content.

“This is a really beautiful moment,

Because, at this point, we have a deeper understanding of what the user is really looking for.

And then we have the opportunity to delight them in something that is just highly relevant,”
Vidhya Srinivasan, VP and GM of Search Ads and Ads on Google Experiences – Google’s Marketing Live event for advertisers

This year's GML was a timely & important follow-up to I/O, showing how we're using AI to usher in the next era of marketing. Looking fwd to seeing how businesses of all sizes use these innovations to help their businesses thrive: https://t.co/sAA8My5rVZ #gml2023
— Prabhakar Raghavan (@WittedNote) May 23, 2023

Changes to Google Ads – Generative AI in search experience to help fulfill the journey. If your an SEO, note the push toward paid here with the call-to-action on ads. If you're an Ads person, take note on how this journey works. #gml2023 pic.twitter.com/Z2DaMa7HCT
— Jason Dodge (@dodgejd) May 23, 2023

Highlights from Google Marketing Live 2023:

Unleash the power of Search and Performance Max campaigns with new generative AI features for improved campaign building and creative scaling.
Drive sales growth for retailers with omnichannel and store-centric features for Performance Max, along with innovative ways to measure product profitability. Explore the enhanced Merchant Center Next experience and utilize Product Studio with generative AI for creating captivating product scenes.
Optimize YouTube campaigns by leveraging Google AI for expanding creative assets and maximizing results, while understanding the impact of suitability settings on campaign key performance indicators (KPIs).
Strengthen your measurement capabilities for better business outcomes, including simplified management of first-party data and new advancements in Google Analytics 4.
Enhance app growth by making ads more shoppable, providing a seamless web-to-app experience, and enhancing iOS measurement.
Unlock new features in Display & Video 360, including privacy-centric audience solutions and improved insights for connected TV campaigns.