What do AI search summaries mean for PPC?
Plus: New LinkedIn ad features & a tell-all book about Facebook
Google confirmed this week that it will “explore bringing ads” to its new AI Mode search. This is the latest development in one conversation which I’ve found increasingly interesting - namely, what impact is the way search behaviour is changing going to have on PPC advertising?
At the moment, it’s pretty straightforward. You search for a phrase on a free-to-use website, you’re served with a raft of results, including the sponsored ads at the top. We’re all used to it, and its a classic formula which helps keep the internet going.
Only, the expectation on an AI search overview is currently a bit different. When you ask Chat GPT a question, you expect a coherent answer - rather than being given multiple different options, before you get to the most relevant one. It’s probable that this will change over time, and we’re all so conditioned to seeing ads that perhaps it’ll quickly feel normal.
Either way, it’s interesting to think about the implications.
Position 1 in Paid Search probably won’t mean what it currently does. Ads will need to adapt to this new world order.
Keyword strategies will need to evolve to phrasing strategies.
There will be much, much higher CPCs. With fewer ad slots comes higher competition. Currently there are often 3-4 ads shown on a SERP - people won’t readily accept this on AI-generated answers.
There will be a major decline in CTRs, and subsequently website traffic, with people finding answers from AI-powered summaries.
Attribution is going to get a lot harder - if someone gets the answer they need from an AI-powered search answer and doesn’t visit the website as a result, but DOES visit the website a few days later, this would currently be a ‘direct’ conversion.
Ultimately, we’re going to end up leaning a lot more on features such as Google’s AI-powered Performance Max campaigns, which will be far more tailored to the new reality.
One thing is clear - PPC marketers are going to need to be increasingly flexible and adaptable over the next couple of years.
Further Reading: Marteh - Google is exploring ads in new AI Mode
What’s been going on this week?
LinkedIn announced that its expanding its AI ad targeting options. Essentially the core new thing is that you can give it more customer list/retargeting signals than is currently the case.
Bluesky is still going, and still unveiling new features - the latest being the ability to post longer videos.
X was down earlier this week; Elon Musk claims that this was due to a cyber attack originating in Ukraine (though at the time of writing there was no evidence to support this.
TikTok is projected to hit $32.4bn in ad revenue (24% YoY growth) this year despite the ongoing uncertainty around the US ban. A lot of businesses have seen a lot of value from advertising on there, and seem set to continue.
Food for thought for those of us who don’t think that Facebook appeals to a younger demographic - Marketplace is keeping them engaged.
Finally, Careless People is released this week. It’s the account of Facebook’s former director of global public policy Sarah Wynn-Williams time at the firm, and is supposedly “jaw-dropping”. I can’t wait to read it for myself.
That’s it! If you found this interesting, I would appreciate it if you shared it with your friends and colleagues.
Some minor housekeeping: for various reasons, the next few editions will be shared on Wednesdays, before moving back to Thursdays as we move into April.
If you’re feeling particularly generous and enjoyed this edition, I won’t stop you from buying me a coffee. Otherwise, I’ll be back next Wednesday. See you then! 🫶