How is Artificial Intelligence Revolutionising PPC

There is no doubt that Artificial intelligence (AI) is rapidly transforming many industries, and pay-per-click (PPC) advertising is no exception.

PPC involves placing ads on search engine results pages or other websites, and only charging the advertiser when a user clicks on the ad. It is one of the most impactful marketing channels for businesses to deploy when looking to dramatically increase their digital presence in a short amount of time.

Whether you’ve known it or not, AI has been shaping the world of PPC for quite some time now and is only going to become more prevalent. At present, AI is being used in PPC to improve ad targeting, optimise ad spend, and increase overall campaign performance to name just a few.

But with the development of tools such as ChatGPT, AI could be about to completely overhaul the PPC industry.

Let’s take it back for a second.

Improving Campaign Performance with AI in PPC

One way AI is currently being used in PPC is through machine learning algorithms that analyse data and make decisions about where and when to show ads. These algorithms can identify patterns in user behaviour and adjust ad targeting in real-time to improve the chances of a user clicking on the ad. For example, if a user has previously searched for a specific product, an AI-powered PPC system might show them an ad for that product when they visit a related website.

This process would be exceptionally difficult to perform if it was manual. A PPC Manager would need to monitor and analyse every single data point coming in and tweak settings in an attempt to provide potential customers with a customised experience. With AI involved, every single potential customer is delivered a totally unique experience by showing retargeted adverts that essentially follow them around as they browse the internet.

Another way AI is being used in PPC is through the optimization of ad spend. AI algorithms can analyse data on ad performance and adjust the budget for individual ads or groups of ads in order to maximise return on investment. This allows advertisers to get the most out of their PPC budget and avoid wasting money on underperforming ads. Comparatively, a PPC Manager would need to sit and watch data come in whilst analysing and making changes to the budget and bid strategy in real-time. This might be manageable with smaller budgets, but as soon as you start to scale your budget and receive hundreds and thousands of clicks each day spread across multiple campaigns and ad groups, it becomes virtually impossible to manage budgeting effectively.

AI is also being used to improve the overall performance of PPC campaigns. For instance, AI-powered tools can analyse data on ad performance and suggest changes to ad copy or landing pages that are likely to increase conversions. This can help advertisers improve the effectiveness of their campaigns and achieve better results. If you’re familiar with the Google Ads dashboard, you’ll know about the Recommendations tab. This is AI.

Of course, if you are familiar with the Recommendations tab, you’ll know that what’s suggested can sometimes be… not quite right. For all its benefits, AI still has some way to go to fully understand your motives for advertising, the personal and human side of your ads, understanding your service or products and how this relates to a customer.

The Future of AI in PPC: ChatGPT and Beyond

Looking to the future of AI in PPC, there have been significant leaps forward in terms of natural language processing, particularly through the recent ChatGPT. There are already discussions around how it can be deployed in search engines to create a more conversational style experience. What would this mean for creating adverts? Would the process for creating adverts become a conversation with a chatbot? Would you just feed information into an advert generator?

In summary, AI is revolutionising PPC by improving ad targeting, optimising ad spend, and increasing overall campaign performance. As AI continues to advance, we can expect to see even more innovative uses of this technology in the world of PPC advertising.