Dear Marketers: Before using AI from Google Ads…you should consider this.
Sure, go ahead and use AI to create your ads. (Mine will continue to perform better.).
Recently, Google announced they will integrate AI into more ad creation for Google Ads.
This will streamline the process of creating ads.
Make it easier for small-budget campaigns to get started.
Create a frictionless onboarding process for small and medium businesses.
Overall, implementing this change will be an instant ROI for Google.
Why would Google do this?
They have a revenue problem. Google relies on the profits from Google Ads, but its growth has seemed to stall in the last few years.
This means they need to find new ways to make more money…
AI + Google = Perfect Match
AI is a great tool everyone seems to be discussing; even SMBs have heard of it from the mainstream media.
When you pair AI with a trustworthy brand like Google, it’s a match made in heaven.
It seems irresistible when that new match is presented to SMBs working with a tight budget, like owners, managers, and in-house marketers.
Google Ads is hard.
Unless you’re a marketing agency or large corporate marketing team, Google Ads can be very overwhelming and intimidating.
Over the years, Google has presented its smart and simple ads to SMBs to make creating ads easier, with little customization.
But what if they can make the more advanced expert Google Ads more appealing to that same audience?
Pairing AI with Google Ads allows for a wider net to be cast for potential advertisers.
By injecting AI into learning your campaign needs and “doing your account set up,” — Google is positioning itself to make Google Ads more attainable to a wide audience.
There’s one problem, though…
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All ads will follow the same algorithmic setup as everyone else.
There will be ZERO competitive advantage.
What AI Google Ads Could Look Like for SMBs
Let’s take two different plumbing companies working within the same 25-mile radius.
Two companies do not have a marketing specialist or team working with them to set up ads.
So, they use the AI setup.
Add Services Into the System
When prompted in the AI-onboarding, they will add their services like:
Toilet repair
Sink leaks
Busted pipes
New construction installs
Water heater replacements
Target Locations
They will also provide the same towns and counties they provide services in for location targeting.
Add Contact Information
Then, they will provide their website, phone number, and email address for potential customers to contact them.
Suggested Budget for Ads
Then Google AI will work its magic and create ads, probably suggest a daily budget of $15–30 to them, and start auctioning these two companies against each other.
Wait a minute…These ads will have almost all the same information.
This will create ad cannibalism between two different companies.
Let The Bidding Games Begin
It will be a constant game of ping-pong between who wants to use the “auto-suggested” budget increases more to compete with the other.
This fight will continue until one plumbing company can no longer maintain the budget requirements to compete with the SAME EXACT CAMPAIGN for another company.
Why these AI ads will become a problem…
Google is continuing to control the market 100% of the time.
While the AI-centric campaigns are helping the companies create ads, it’s also positioning them to have several problems
Oh, did you forget? There was a third plumbing company…
They opt to set up their ads manually or use a freelancer (like me!)
But wait Virginia, don’t you use ChatGPT to create ads?
Yes. I do. But there’s a big difference, I’ll explain below…
8 Major Problems You’ll Face with AI-Only Ads
Lack of Competitive Advantage: AI-generated campaigns will likely follow a standard algorithmic setup, reducing the uniqueness of each campaign. This lack of differentiation could result in a diminished competitive edge for businesses relying solely on AI for their ad campaigns.
Ad Cannibalism: AI-generated ads could target the same audience with similar content for businesses operating in the same geographic area and offering similar services. This scenario could lead to ad cannibalism, where similar ads compete against each other, driving up costs without a proportional increase in effectiveness.
Increased Bidding Costs: The automated nature of AI-driven campaigns might result in suggested budget increases to outcompete similar campaigns. This could lead to a bidding war among businesses with similar ads, unnecessarily inflating costs and possibly outpacing smaller businesses' budgetary constraints.
Generic Ad Content: The AI’s approach to generating ad content based on input services, target locations, and contact information might result in generic ads that fail to capture a business's unique selling propositions (USPs). Human ad managers can tailor content to highlight unique aspects of a business, making ads more appealing to potential customers.
Strategic Oversight: A human Google Ad manager can provide strategic oversight, adjusting campaigns based on market trends, seasonal changes, and performance analytics. This level of dynamic management is challenging to replicate with AI, potentially leading to less optimized campaigns over time.
Personal Touch and Creativity: AI might lack the creative nuance and personal touch that a skilled marketer can bring to an ad campaign. Human creativity can lead to more engaging, innovative ad strategies that resonate better with target audiences.
Market Knowledge and Insight: Experienced marketers bring a depth of market knowledge and insight that AI cannot match. They understand customer psychology and competitive landscapes and can navigate complex market dynamics to position ads more effectively.
Risk of Homogenization: With many businesses using the same AI tools for ad creation, there’s a risk of ad content homogenization. This could lead to a bland advertising landscape where ads from companies look and feel too similar, reducing overall engagement.