TL;DR:
- Google plans to use generative AI to create advanced advertising campaigns.
- Advertisers will provide “creative” content, and the AI will remix this material to generate ads tailored to the target audience and other goals, such as sales targets.
- Concerns have been raised about the accuracy of the AI, but Google has assured it will put strict guardrails in place to prevent errors and prevent the spread of misinformation.
- Google’s move to integrate generative AI into its advertising offerings comes as the company faces declining advertising revenue and competition from other big tech companies.
- The integration of generative AI into Performance Max, a program that uses an algorithm to determine ad placement and marketing budgets, has the potential to revolutionize the way ads are created and placed.
Main AI News:
In the competitive world of big tech, companies are striving to integrate the latest advancements in generative artificial intelligence (AI) into their offerings. In the near future, Google plans to incorporate this groundbreaking technology into its advertising business. An internal presentation to advertisers, seen by the Financial Times, reveals that the Alphabet-owned company intends to use AI to create innovative advertisements based on materials created by human marketers.
Under the new initiative, dubbed “AI-powered ads 2023,” advertisers will provide “creative” content in the form of imagery, video, and text related to a campaign. The AI will then remix this material to generate ads tailored to the target audience and other goals, such as sales targets. While the integration of generative AI has the potential to revolutionize advertising, there are also concerns about its accuracy. One person familiar with Google’s presentation expressed worry that the tool could spread misinformation, as AI chatbots can confidently state falsehoods without being aware of the truth.
Google has assured the FT that it plans to put strict guardrails in place to prevent such errors, known as “hallucinations,” when it rolls out its new generative AI features. The move comes as big tech companies race to capitalize on the recent surge in popularity of generative AI, which has garnered attention for its ability to create highly sophisticated text and images in response to human inputs.
Google last month launched its own AI-powered chatbot, Bard, in a bid to challenge Microsoft-backed OpenAI’s ChatGPT, which can produce convincingly human-like responses to questions and prompts. Additionally, the company has integrated generative AI into its widely used productivity applications, such as Google Workspace, Google Docs, and Gmail.
As businesses seek to control costs and face increased restrictions on using personal data for marketing purposes, the advertising industry is facing significant challenges. To stay ahead of the competition, big tech companies are turning to the latest automation technologies, including generative AI, to attract clients. In this vein, Google plans to integrate its new AI capabilities into Performance Max, its program that uses an algorithm to determine ad placement and marketing budgets, as well as produce simple ad copy.
The integration of generative AI into Performance Max holds the promise of transforming the manner in which advertisements are crafted and positioned. Advertisers will provide “creative” content, and the AI will remix this material to generate tailored ads that meet the target audience and sales goals. Despite the exciting possibilities, there are also concerns about the accuracy of AI. Google has assured that it will put strict guardrails in place to prevent errors and prevent the spread of misinformation.
Google’s move to integrate generative AI into its advertising offerings comes as the company faces declining advertising revenue. In the final quarter of last year, the company’s advertising revenue slipped by 4%, resulting in overall revenue growth of just 1% for parent company Alphabet. In response, Google is seeking to keep pace with other big tech companies, such as Meta, which owns Facebook and Instagram and plans to use generative AI in its ads systems by the end of the year with its Advantage+ offering.
Conlcusion:
Google’s plan to use generative AI in its advertising business represents a major shift in the advertising industry. By incorporating the latest advancements in AI, Google aims to create advanced and highly sophisticated advertising campaigns that are tailored to specific audiences and goals. While there are concerns about the accuracy of AI-generated ads, Google has assured that it will put strict guardrails in place to prevent errors and misinformation.
The integration of generative AI into Performance Max holds the promise of transforming the manner in which advertisements are crafted and positioned, and Google’s move comes as the company faces declining advertising revenue and increased competition from other big tech companies. This development is a significant step forward for the advertising industry and will likely have a significant impact on the market in the coming months and years.
