Google is bringing significant changes to its advertising strategy by incorporating generative artificial intelligence (AI) into its search engine. The AI-integrated search engine enhances user satisfaction, driving more searches and, consequently, providing more opportunities for Google to increase its advertising revenue. Philip Schindler, Google’s Chief Business Officer (CBO), emphasized the advertising strategy in the AI era at the recent ‘Google Marketing Live (GML) 2024’ event.
1. Introduction of AI Overview
At the recent ‘I/O 2024’, Google announced ‘AI Overview’, incorporating the Gemini AI model into the search engine. This technology selectively provides ads related to the information users search for. AI Overview increases the accuracy of search results, encouraging users to stay on Google pages longer, which naturally increases advertising opportunities.
2. Circle to Search and YouTube Shorts Advertising Strategy
Google also introduced advertising strategies through ‘Circle to Search’ and YouTube Shorts. Circle to Search is a feature integrated into the Galaxy S24, allowing users to draw a circle on the screen to search for images within it. This enables users to easily search for products and obtain shopping information. YouTube Shorts, which features short video content, links to shopping sites when specific products are featured. Shorts garner 70 billion views daily, providing data to analyze the relationship between advertising and sales.
3. AI-Powered Advertising Creation Tools
Google unveiled AI tools to aid in ad creation. These tools can composite product photos onto desired backgrounds or create short videos. Additionally, they can generate 3D images that appear as if they were shot in 360 degrees. These tools provide creators with new creative opportunities and contribute to improving ad quality.
Conclusion
The integration of AI is making Google’s advertising strategy more innovative and efficient. By incorporating AI into its search engine, Google is enhancing user experience and creating opportunities to increase advertising revenue. We can expect more diverse AI-powered advertising strategies to emerge in the future.