Generative AI is certainly having a moment. Wherever you turn, people are using it to explore, create, replicate, and innovate — sometimes in exciting and revolutionary ways, other times in concerning and predatory ways. Soon, it may pave the way for a new era in neuroscience, reduce traffic jams in California, accelerate research into humanoid robots, and much, much more. However you feel about it, it’s here to stay. And because it’s already having a huge impact on search engines (hello, Search Generative Experience!) and digital marketing, it’s imperative that you learn about it.
We’ve already discussed the basics of generative search and how generative search will impact SEO, but today, we’re focusing on how Google’s Search Generative Experience (SGE) may impact Google Ads. Do you need to totally revamp your pay-per-click (PPC) marketing strategy? Scroll down to explore what we know, what we predict, and our current tips for the future.
Search Generative Experience 101
Google designed its Search Generative Experience to improve how people interact with the search engine in a variety of ways. According to Google, it aims to help with all the following:
- It allows users to ask more complex and descriptive questions.
- It gets to the heart of a query faster, providing an “AI-powered snapshot.”
- It provides links to relevant results, which users can use to explore the topic further.
- It helps users write drafts and generate images.
- It suggests helpful follow-up questions, guiding users who want to dig deeper.
Although you can interact with this new technology now, SGE is still in the experimental phase and has several known limitations. Like all AI that relies on large language models (LLMs), it’s known to hallucinate. It may also misinterpret language, produce biased or opinionated results, or present statements that contradict other information included in the search results. It’s not perfect, but it can be a very helpful tool.
Currently, SGE results appear at the very top of the search engine results page (SERP), above the paid ad results, organic results, and other SERP features. They take up a lot of vertical space, which is obviously a concern for those investing in PPC marketing.
PPC Marketing in the Age of AI
Many companies rely on PPC marketing as a cost-effective way to reach a large, targeted audience. Will SGE diminish the value of this strategy and present frustrating challenges? Or will it create exciting new opportunities for marketers? Chances are it’ll be a little of both.
First, let’s go to the source of all this change.
Google has stated that “search ads will continue to play a critical role” in SGE, serving as sources, providing helpful information, and helping people discover new businesses. As always, search ads will appear in dedicated ad slots on SERPs. However, Google will also “continue to test and evolve the ads experience as [they] learn more.”
In addition, during the Alphabet 2023 Q4 Earnings Call, Philipp Schindler, Google’s SVP and CBO, said, “SGE is creating new opportunities for us to improve commercial journeys for people by showing relevant ads alongside search results. We’ve also found that people are finding ads either above or below the AI-powered overview helpful, as they provide useful options for people to take action and connect with businesses.”
All good information, but there’s not a lot to sink your teeth into, is there? Although it’s a relief to hear that ads will continue to play an important role in SGE, we’re very curious about what the exact changes might be. For now, we can only theorize.
So, what might change?
SERP Makeovers
SGE responses are large and tend to dominate SERPs. In fact, studies show that 84% of SGE responses cover more than half the screen, and 38% cover the entire screen. Ads placed above an SGE response will undoubtedly have a competitive edge.
In the current beta version of SGE, ads may appear above, alongside, and/or below the SGE result. According to Search Engine Land, regardless of whether there is an SGE snippet or not, ads appear more often at the bottom of search results. Although standard ads appear more often than shopping ads (in the form of carousels), shopping ad carousels have the benefit of typically appearing above the SGE snippet, which is good news for e-commerce shops.
Going forward, the placement of these ads could change. They may be integrated into the SGE result, shifted to the side, or relegated to the bottom. That may sound a little nerve-racking if you rely on PPC advertising, but keep in mind that Google obviously cares about its stock prices and how often users click on ads. It’s unlikely they will be willing to hurt ads in any significant way when changing the format of SERPs.
Generative AI Ads
Google is experimenting with generative AI ads. As they wrote in a blog post last year, when experimenting with formats, Google will “use generative AI to create relevant, high-quality ads that are customized to every step of the search journey.” Users may see “fully customized ads” tailored to fit their search query. To ensure that users can distinguish these ads from organic results, they will include the “sponsored” label that Google currently uses to designate ads.
A Hit to CTRs
When SGE exits the beta stage, it will likely take a toll on click-through rates (CTRs). Why is this the case? First, because SGE overviews may answer users’ questions directly, many people won’t feel the need to click on paid ads or organic listings. Second, if ads are pushed further down the page, they may get less attention. To adapt to this change, marketers may shift their attention to other performance metrics, such as those that are more conversion-focused (conversation rate, cost-per-acquisition, etc.).
Less Focus on Keyword Research
Some industry experts feel that the emphasis on keyword research has already begun to fade. A decade ago, marketers were often focused on closely managing specific, concise, exact-match keywords. These days, we’re a little looser, allowing for phrase-match and even broad-match. Going forward, instead of focusing primarily on keywords, marketers will likely focus on building a well-optimized website that utilizes conversion tracking. And as always, we’ll design websites with both users and Google’s algorithm in mind.
Writing Google Ads for SGE
How will all these potential changes impact the writing of Google ads? Right now, we can only make educated guesses.
First, if SGE tries to integrate ads into its AI-written summaries, we may need to write ads that sound more natural. Short, punchy, call-to-action phrases, which are common now, may fall by the wayside because they sound awkward in SGE. Instead, we may need to write ad copy that sounds more conversational in tone.
In addition, if SGE draws bits and pieces from ads, it may be important that each individual piece of the ad is able to stand alone. If your ad doesn’t make much sense when it’s broken into segments, you may need to rewrite those segments so that they each have legs to stand on.
Finally, most importantly, we must be willing to adapt. SGE is still in the beta phase, and it will continue to evolve up to — and even after — its launch. Planning ahead is laudable, but in this case, it may be a waste of time and energy. Follow along with updates as they arise, but don’t make any drastic moves yet.
Keep in mind that although Search Generative Experience will inevitably impact digital marketing strategies, it may be a little while before it exits the beta stage and is widely adopted. For this reason, you shouldn’t expect to confront any significant changes to your PPC metrics in the near future. Digital marketers sometimes get overexcited (and overly concerned) about innovations like this, but the general public is largely unaware. It may be years before we see SGE reaching a mass audience.
In addition, things are changing every day. While it’s important to stay on top of changes that may affect your marketing strategies, keep in mind that many changes may be temporary. We won’t know the true effects of SGE until it’s out of the beta phase and the dust has settled.
If you’re hoping to build a beautiful, effective website that will rank on Google, contact 417 Marketing for help. Our team of knowledgeable, creative, and passionate professionals specializes in SEO, web design and maintenance, and Google Ads, and we have successfully completed over 700 websites since our inception in 2010. Contact us and learn more about what we can do for your company.
