PPC news - May 2024

Google introduces 6 new AI enhancements for Performance Max campaigns

Recently, Google Ads unveiled six AI features tailored for Performance Max campaigns.

The latest additions aim to share deeper insights with advertisers seeking to improve campaign performance, potentially enhancing return on investment (ROI).

Here's a breakdown of the new features:

1. Customer Value Mode: Currently in beta, this feature is designed to assist PMax advertisers in acquiring high-value customers by optimising purchase conversion goals.
2. Customer Retention Goal: Also in beta, this feature focuses on re-engaging lost customers, providing a strategic approach to win back their business.
3. Detailed Demographics: Rolling out gradually, this feature offers insights into age and gender demographics, enabling advertisers to tailor their ads to specific audience segments for increased engagement.
4. Budget Pacing Insights: Providing real-time spend tracking and projected spend analysis, this feature empowers advertisers to optimise campaign budgets efficiently.
5. Account-level IP Address Exclusions: PMax advertisers now have the ability to exclude specific IP addresses, such as those associated with their company, minimising wasted ad spend on undesired interactions.
6. Final URL Expansion: In beta testing, this feature allows advertisers to experiment with replacing final URLs with more relevant landing pages from their website, potentially driving stronger results. Advertisers participating in the beta have reported an average increase of over 9% in conversions/conversion value with similar Cost Per Action (CPA)/Return on Ad Spend (ROAS).

Advertisers interested in joining the beta programs or learning more about these features are encouraged to reach out to Google Support or their dedicated account team for further information.

Google's revenue skyrockets: Insights from Alphabet Inc.'s Q1 2024 Earnings Report

Alphabet Inc. has reported a substantial 15% increase in overall revenue, soaring to $80 billion, with Google's Search revenue witnessing an impressive 14% growth, reaching $46 billion in Q1 2024 compared to $40 billion in the same period of 2023.

This surge significantly contributed to Google's advertising revenue, which escalated by 13% to $61 billion year-on-year.

YouTube emerged as a key driver of this growth, with earnings hitting $8 billion, a 20% increase from Q1 2023, attributed partly to Google's proactive measures against ad blockers.

Philipp Schindler, Alphabet’s senior vice president and chief business officer, highlighted Google's AI innovations, including the integration of Gemini into Performance Max, which streamlines asset creation for businesses instantly.

The significant revenue surge reflects a healthy adoption of Google's automation tools, indicating advertisers' growing trust in the tools. This positions advertisers favourably for future AI advancements introduced by Google, emphasising the ongoing importance of embracing automation in digital advertising.

Meta's ad revenue surges by 27% in Q1 2024

Meta, formerly known as Facebook, has reported a 27% increase in ad revenue for the first quarter of 2024, marking a significant improvement over the 4% growth witnessed in the same period a year ago.

In Q1 2024, advertising revenue reached $35.6 billion, compared to $28.1 billion in Q1 2023. This robust performance contributed to Meta's total revenue soaring by 27% year-on-year, from $28.6 billion in Q1 2023 to $46.4.1 billion in Q1 2024.

Mark Zuckerberg, CEO of Meta, highlighted the success of Meta's end-to-end AI-powered tools, Advantage+ Shopping, and Advantage+ App Campaigns, noting that revenue generated through these tools has more than doubled since last year.

Breaking down the numbers across Meta's ‘family of apps’ including Facebook, Instagram, Messenger, and WhatsApp, the average price per ad surged by 6%, ad impressions increased by 20%, and daily active users witnessed a 7% growth, reaching 3.24 billion.

Zuckerberg addressed the potential for Meta AI to incorporate search advertising, stating that while they are not currently working on search ads, there could be opportunities for ads and paid content within Meta AI interactions in the future. He also highlighted Meta's accelerated investments in AI, with plans to spend between $35 million and $40 billion this year.

In other developments, Threads, Meta's messaging app, has surpassed 150 million monthly active users, positioning it as a significant platform for potential ad placements later this year.

The strong growth in advertising revenue for Meta reflects positive momentum for the industry. As Meta continues to expand its AI capabilities and explore new revenue streams, the advertising landscape is likely to evolve further.

Reddit launches dynamic product ads in public beta

Reddit has unveiled its latest offering, Dynamic Product Ads, now available in public beta as part of the Reddit shopping suite.

This new solution aims to connect potential customers with products they are actively researching, discussing, and considering purchasing.

With Reddit experiencing increased visibility on Google Search, the platform is likely attracting more organic traffic, including product searches. In testing during Q1, Dynamic Product Ads demonstrated a significant Return on Ad Spend (ROAS), outperforming conversion objective campaigns by 1.9x.

Dynamic Product Ads leverage shopping signals and machine learning, combined with advertiser product catalogues, to serve the most relevant products to users. By identifying high user intent, these ads aim to drive action and connect users with the products they seek.

Key Features:

• Instant Campaign Creation: Ads auto-populate in real-time with the latest images, pricing, and product details from the advertiser's catalogue.
• Two Targeting Options:
  • Retargeting: Ads target users based on their previous engagement with products on the advertiser's site.
  • Prospecting: Ads are served based on users' engagement with products on Reddit or advertiser sites.
• Support Across Purchase Journey: Ads are placed within feeds and conversations, offering single-image or carousel format ads to engage Reddit users at various stages of the purchase journey.

Dynamic Product Ads are accessible to all Reddit advertisers globally via the Reddit Ads Manager.

Google pushes back third-party cookie phase-out to potentially 2025

In response to various challenges and heightened scrutiny from the U.K. Competition and Markets Authority (CMA), Google has once again delayed the anticipated deprecation of third-party cookies in its Chrome browser.

This delay provides brands with additional time to prepare and explore alternative solutions to third-party cookies. However, it's essential to note that while the timeline has shifted, the eventual elimination of third-party cookies remains imminent.

Google acknowledges the concerns raised by various stakeholders, including industry players, regulators, developers, and the CMA. In a statement released via Privacy Sandbox News, Google emphasised its commitment to engaging with the entire ecosystem to address these challenges effectively.

Although Google has not provided a specific timeline, it expresses optimism about completing the third-party cookie deprecation by 2025. It's worth recalling that Google initially announced plans to phase out cookies in January 2020.

Several obstacles have contributed to the uncertainty surrounding the timeline for third-party cookie deprecation. These include 39 ‘concerns’ raised by the CMA, reservations expressed by the U.K. Information Commissioner's Office (ICO), and criticisms directed towards Google's proposed alternatives, such as the Privacy Sandbox, regarding their effectiveness.

As the industry navigates these challenges and awaits further developments, brands are encouraged to remain proactive in exploring alternative strategies to adapt to a future without third party cookies.

Google Chrome's IP Masking: A Game-Changer for Search Advertising

Google's move to develop a two-hop proxy for Chrome users, aimed at bolstering privacy, holds significant implications for advertisers. Here's what you need to know:

1. Limited Ad Targeting: Advertisers will only be able to target regions designated by Google, potentially leading to inaccuracies in ad location targeting.
2. Identity Masking: Chrome's proxy usage will obscure users' identities, posing challenges for advertisers in distinguishing between genuine and bot traffic.
3. Monopoly on Location Data: With Google exclusively handling this data, it gains a monopoly on location data, potentially driving up costs for advertisers and eliminating competition in the search ads space.

While named as a measure to improve user privacy, concerns linger regarding data privacy from Google itself. Regulators, including the UK's Competition and Markets Authority, have voiced apprehensions about Google's self-preferencing tendencies and the need for stronger consumer privacy protection.

As Google navigates privacy concerns with its Privacy Sandbox tools, it remains critical for advertisers to stay informed and adapt to these updates.

Google testing ‘People Also Consider’ badge on branded search ads

In a recent update, Google has begun experimenting with a new feature called the ‘People Also Consider’ badge on branded search ads. This move has left PPC marketers scratching their heads, as the purpose of the badge remains unclear. Positioned below the company name, logo, and URL, the badge is not clickable, prompting speculation about its function.

The Adido team weren't able to find an example, so image sourced from: Seround table

Some in the advertising community are worried that Google might be gearing up to compel brands into competitor ad auctions. This could have significant implications for businesses, potentially leading to lost sales and a diminished user experience. Questions linger about how this move aligns with Google's advertising strategy and whether it will ultimately benefit advertisers.

The introduction of the ‘People Also Consider’ badge comes on the heels of another test where Google displayed a ‘Related To Your Search’ badge on search ads. These developments have raised eyebrows and sparked discussions about the future of branded search advertising on the platform.

Despite inquiries from industry observers, Google has remained tight-lipped about the purpose and implications of these badges. The lack of clarity has left advertisers anxiously awaiting further insights from the tech giant.

If Google implements this feature, it could force brands to navigate unfamiliar territory in competitor ad auctions. This shift underscores the need for marketers to stay vigilant and adapt their strategies to potential changes in the advertising auctions.

Survey reveals PPC trends: AI a priority but raises concerns, trust in Google Ads declines

A recent report from PPCsurvey.com provides insights into the world of PPC marketing, drawing responses from over 1,100 specialists globally. Here are the key takeaways:

Priority Shift: AI and automation top the list of priorities for search marketers in 2024. The emphasis on automation has been steadily growing, with an increasing reliance on AI-driven solutions across various aspects of PPC campaigns.

Goals and Budgets: The main goal for 72% of search marketers is achieving efficient growth, indicating a focus on maximising ROI while increasing ad spend. Budgets are mostly on the rise, particularly for campaigns targeting 'ready to buy' prospects at the bottom of the funnel.

PMax Adoption and Challenges: Google's Performance Max campaigns are gaining traction but face implementation challenges, including asset creation and campaign management complexities. Managing campaigns has become more challenging, attributed to loss of insights, increased competition, and rising CPCs.

Platform Trust Decline: Trust in ad platforms has declined, with Google, Twitter, and Meta experiencing significant drops. Concerns include platform-side automation, reputation damage, unwanted content, and reliability issues.

Overall, the survey sheds light on the evolving landscape of PPC marketing, emphasising the need for a balanced approach that leverages automation while retaining human expertise for optimal campaign performance and success.

Google's Deadline for Transitioning from Universal Analytics to Google Analytics 4 Approaches

Google has issued a reminder that it will be discontinuing all Universal Analytics (UA) services and APIs on 1st July, urging users to migrate to Google Analytics 4 (GA4) properties to prevent data loss. Failure to transition before the deadline could result in permanent deletion of data, impacting campaign performance.

To retain access to UA property data, users are advised to export it using methods outlined in the Google Analytics Help Center. Those utilising the BigQuery integration should begin the process immediately to ensure historical data is preserved.

Once UA services end, new conversions won't be measured, audience lists will be closed, and API requests associated with UA properties will fail. Tools reliant on these APIs, like Looker Studio, will not display UA data.

The deadline for requesting BigQuery export and backfill of historical data from UA 360 properties is 30th June.

It's crucial for users to complete migration to GA4 properties to avoid disruptions in data access and campaign performance.

Introducing Google Ads Solutions: streamlining campaign management and automation

Google Ads has rolled out ‘Solutions’, a new tool aimed at simplifying campaign management and automation for advertisers.

Found within the ‘Tools’ section, Solutions offers customisable templates for tasks like performance reporting, budget optimisation, and URL validation, accessible to users of all skill levels. Leveraging the Google Ads API, Solutions ensures up-to-date and accurate data, saving advertisers’ time and effort.

The tool provides pre-built automation templates catering to different aspects of campaign management, including performance reporting, anomaly detection, URL validation, budget optimisation, and negative keyword management. Advertisers can customise these templates to suit their specific needs, reducing manual campaign management tasks.

To set up a solution, users can navigate to the ‘Tools’ section, select ‘Solutions’ from the ‘Bulk actions’ dropdown menu, and choose the desired solution type. Monitoring and modifying active solutions is made easy through the user-friendly interface, allowing users to track performance and make necessary adjustments.

Advertisers are encouraged to explore the available automation templates, tailor them to their requirements, and monitor performance regularly for optimal results.

Thanks for reading! Be sure to check back next month for the latest trends and updates in the world of PPC for June.