PPC news - December 2024

Google faces £7 billion UK class action over search monopoly

Google is facing a £7 billion class action lawsuit in the UK, accused of abusing its dominance in the search market to harm competition and drive up consumer costs. The lawsuit, led by consumer advocate Nikki Stopford, claims Google’s practices, such as forcing Android manufacturers to preinstall Google Search and Chrome and paying Apple billions to remain Safari’s default search engine, have unfairly cemented its control over the market. The UK’s Competition Appeal Tribunal has allowed the case to proceed, marking a significant legal challenge for the tech giant.

Stopford argues that Google’s actions inflated advertising costs, indirectly raising prices for UK consumers. In response, Google’s UK counsel, Paul Colpitts, dismissed the claims as speculative, maintaining that people choose Google for its quality, not due to a lack of alternatives. This case adds to a growing list of global antitrust challenges against Google, including a US Department of Justice lawsuit that could force the sale of Chrome and ongoing EU investigations. If successful, the UK lawsuit could reshape Google’s operations and spark further regulation of Big Tech.

Perplexity AI enters e-commerce with AI-powered shopping search

Perplexity AI has unveiled a new shopping feature for its U.S. Pro subscribers, aiming to challenge tech giants like Google and Amazon in the ecommerce space. This AI-driven platform offers visual product cards with pricing, seller details, and product pros and cons, along with one-click checkout. By integrating with Shopify, it facilitates seamless shopping experiences, including free shipping for subscribers.

The platform sets itself apart by offering "unbiased" product recommendations without sponsored placements, catering to high-intent shoppers. With no affiliate fees for merchants and a focus on consumer trust, Perplexity’s approach may provide advertisers a fresh avenue to reach customers, particularly as the platform evolves. This innovation highlights the growing competition in AI-shopping, reflecting a broader trend among search platforms toward ecommerce integration.

TikTok launches AI video tool to simplify content creation for marketers

TikTok has introduced Symphony Creative Studio, an AI-powered tool designed to help brands effortlessly create TikTok-ready video content. By inputting a product description or URL, marketers can generate multiple video options that align with TikTok trends, complete with visuals pulled from websites or licensed assets from partners like Getty Images.

Key features include customisable AI avatars for storytelling, multilingual video support for global outreach, and editing capabilities to tailor content to a brand’s vision. This tool lowers the barrier to entry for businesses unfamiliar with video production, offering a scalable solution for reaching TikTok's vast audience.

While the quality of AI-generated clips may vary, Symphony Creative Studio represents a practical step forward for TikTok’s AI offerings, focusing on content creation rather than experimental tools like chatbots. Marketers are encouraged to explore its potential to boost engagement and streamline video production. If successful, this tool could attract a broader range of businesses to TikTok’s platform.

Google enforces stricter customer match rules to bolster privacy compliance

Google has announced a crackdown on Customer Match, signalling a firm stance on privacy compliance as global regulations tighten. Advertisers are being reminded that access to this powerful targeting tool is a “privilege, not a right,” with stricter rules set to take effect in January 2025.

Key changes emphasise proper user consent, banning practices such as using email addresses without permission or targeting minors. Violators could face immediate account suspensions, with no warnings or second chances offered. Google’s measures align with its broader push for responsible advertising, underscoring the need for advertisers to audit their practices and integrate robust consent mechanisms into their 2025 strategies.

While compliant advertisers should remain unaffected, the move highlights Google’s prioritisation of privacy, urging marketers to ensure their Customer Match usage adheres to evolving standards.

Google Ads data shows PMax performance holding steady amid rising costs

Performance Max (PMax) campaigns on Google Ads delivered stable results year-over-year (YoY) for Q3 2024, according to a study by Optmyzr. Advertisers saw a slight increase in return on ad spend (ROAS) and consistent conversion rates, but rising costs per click (CPCs) and costs per acquisition (CPAs) are starting to strain performance gains.

For shopping campaigns, PMax outperformed traditional campaigns, delivering a 4% YoY boost in ROAS and a 15% drop in CPAs. However, in search campaigns, CPCs rose 22%, offsetting a strong 21% increase in conversion rates. Despite these dynamics, PMax CPCs remain about 50% lower than search campaigns due to the inclusion of visual content, which Optmyzr’s Navah Hopkins recommends leveraging for cost efficiency.

The report also flags a growing concern with impression share loss across PMax campaigns, potentially limiting reach. To balance performance, advertisers are advised to refine visual creative assets, improve conversion tracking, and strategically allocate budgets across campaign types. While PMax offers value, optimising for cost efficiency and impression share will be key to maintaining momentum in an evolving ad landscape.

Google adds seller and product ratings to shopping ads

Google Shopping ads now feature integrated seller and product ratings, offering consumers a more comprehensive view of brand reliability and product quality. Previously displayed separately, these ratings can now appear individually or together, depending on available data.

Seller ratings focus on the overall store experience, including shipping, customer service, and packaging. Product ratings highlight individual item attributes such as quality, usability, and customer satisfaction.

This integration can enhance ad visibility and build consumer trust, making ads more eye-catching and potentially boosting click-through rates. For advertisers, it offers a competitive edge, provided they’ve collected strong ratings in both categories.

By unifying these metrics, Google gives ecommerce advertisers a new opportunity to present a well-rounded picture of their brand, which could lead to improved ad performance and consumer engagement.

Google Ads Editor 2.8 brings AI image generation and new features

Google has launched version 2.8 of Google Ads Editor, introducing AI-powered image generation, new performance tools, and more. The update includes several notable features, such as AI-generated images from text prompts, Google Sheets export, and enhanced controls for video campaigns and Performance Max. Additionally, there are improvements to image management, error handling, and UI, including a resizable error pane and centralised documentation.

However, the update comes with a catch: support for Google Ads Editor versions 2.5 and below has been deprecated, requiring users to upgrade to continue receiving updates. The introduction of AI image generation marks a significant shift in Google’s approach to incorporating artificial intelligence into advertising tools, potentially transforming creative production workflows for advertisers.

This release underscores Google’s ongoing push to modernise its advertising suite with AI-driven capabilities while streamlining campaign management.

Google UI update reclassifies Demand Gen audiences as 'signals'

Google has updated the UI for Demand Gen campaigns, now categorising audience and age targeting as “signals” rather than fixed targeting parameters. This change, triggered by enabling “optimised targeting,” allows Google’s algorithm to use these signals to improve ad delivery without restricting impressions to the specified audience groups. The shift provides advertisers with broader reach, though it reduces control over exactly who sees the ads.

This update signals a move toward a more automated approach, giving Google’s algorithm the flexibility to expand the audience base. While this could lead to a wider reach, it may also affect conversion rates, requiring advertisers to closely monitor audience signals and adjust bidding strategies accordingly. Although Google assures that audience customisation options remain available, this change may prompt marketers to refine their strategies for targeting and audience segmentation within Demand Gen campaigns.

Google Ads introduces 'conversation started' conversion action for WhatsApp engagement

Google Ads has launched a new “conversation started” conversion action, enabling advertisers to track WhatsApp engagements. When users click on message assets in an ad, they are redirected to WhatsApp to initiate a conversation with the business. Google logs this action as a “conversation started,” giving advertisers insight into the impact of message-based ad interactions.

This new feature allows businesses to better measure and optimise WhatsApp-based campaigns, particularly in markets where WhatsApp is widely used. Message assets, which link ads directly to WhatsApp, are available for Search and Performance Max campaigns in select regions such as Argentina, India, Brazil, and Singapore.

Currently in beta, the feature may not be available to all advertisers, but it marks an important step in integrating messaging platforms into Google Ads for more direct customer engagement.

That's all this month! The Adido team wish you a Happy Christmas & we'll see you for the next PPC news update in 2025!