Google plans to introduce generative artificial intelligence (AI) into its advertising business over the coming months. The company already integrated generative AI into its widely used productivity applications. These apps include Google Workspace, Google Docs and Gmail.
According to an internal presentation to advertisers, the company intends to begin using AI to create novel ads based on materials produced by human marketers.
The Alphabet-owned firm said in the presentation: “Generative AI is unlocking a world of creativity.”
Google already uses AI in its advertising business to create simple prompts that encourage users to buy products. However, the integration of its latest generative AI, which also powers its Bard chatbot, is a big step forward. It now will be able to produce far more sophisticated campaigns, These campaigns will resemble those created by marketing agencies.
According to the presentation, advertisers can supply “creative” content such as imagery, video and text relating to a particular campaign. The AI will then “remix” this material. Ads generated will be based on the audience it aims to reach, as well as other goals such as sales targets.
However, there is that bugaboo about using AI. Some of the advertisers are worried the AI tool could spread misinformation.
Google, though, says it plans to put firm guardrails in place to prevent such errors (“hallucinations”). These guardrails should be in place when it rolls out its new generative AI features in the coming months. This new technology will be embedded into Performance Max. This is a program Google has offered since 2020. It uses an algorithm to determine where ads should run, and how marketing budgets should be spent. It also produces simple ad copy.
Google is not alone in doing this. Meta – the owner of Facebook and Instagram – launched a similar offering to Performance Max last year called Advantage+. It also plans to use generative AI in its ads systems by the end of the year. The good news for Alphabet shareholders is that Google's ad business has returned to growth. Revenues rose 2% in the latest quarter. Expect more big moves from Alphabet on AI. It has reorganized its AI efforts. It is merging internally its Google Brain in California with the UK's Deep Mind. Both are AI labs were a lot of smart people work. Deep Mind was bought in 2014 by Google for over $500 million. Tony Daltorio Editor @ Wall Street Spy
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