Another wave of Google’s AI-driven search solutions but are they beneficial to advertisers or the the client reps who are incentivized to grow advertiser investments?
Google call out that they partner with advertisers to keep them present across four key behaviors: Scrolling, Searching, Shopping, and Streaming. They do so by utilizing YouTube and their core Google search property. This all makes sense so far.
But then things take a turn. Google shifts into an oddly defensive stance, repeatedly reaffirming the strength of its search property. They highlight their 2 billion daily users and insist—almost desperately—that Gen Z isn’t abandoning Google for alternatives like TikTok and Meta. They even call out TikTok and Meta by name, which is striking. In my 15+ years in this industry, I can’t recall Google ever acknowledging Microsoft Bing’s existence. This all feels very insecure to me. But I digress.
I find myself often frustrated by the tactics Google employ to manipulate users and clients alike into handing over their discretionary budgets. But I’m not here to kick them while they’re clearly on the defensive. My focus is on what comes next. Google’s2 Billion daily user statistic is striking: they are widely used and aren’t going away anytime soon.
The issue is that the products Google intend to roll out in 2025 don’t seem immediately impactful. The ne crop of betas are all part of the broader push for AI-driven solutions. As you may have guessed from my previous writing I’m a realist when it comes to “AI” and the proposed “solutions” it has spawned to date. AI and the solutions it has wrought have all been really cool but I have yet to see how it makes money.
Luckily for Google, they have a stellar record when it comes to the issue of monetization. They employ legions of the smartest minds on earth who are diligently working to figure out how to make a return on the billions they have invested in Gemini and other AI solutions. As they call out in their most recent presentation to my team: Google Search is the greatest platform for capturing intent ever made.
Visual Search via Google Lens
Google Lens is responsible for 20 Billion monthly searches of which 20% are related to purchases. Google are quick to note that this solution indexes most heavily with 18-24 year old users. I feel that this is Google’s most promising solution but it will take years before consumer behavior matches the potential.
Ads within AI Overviews
These ads aim to provide a more integrated and relevant advertising experience by integrating directly with the AI Search experience. This shift focuses on user intent and that the AI experience is inherently less navigational than traditional search. There is also a clear need for Google to condition users to transact through the AI experience or risk disruption to their core advertising revenue.
Discovery Occurs across Google and YouTube
Google and YouTube play a role in two out of three online purchase journeys, reinforcing their dominance in digital discovery. Fair enough.
Google’s latest AI-driven advertising solutions fall into three main categories: expanding campaign reach, simplifying platform operations, and enhancing ad relevance. But despite their promises, these updates seem to serve Google’s bottom line more than advertisers’.
- Search Max is Google’s latest “AI-powered” black box solution, blending elements of Broad Match, PMAX, and DSA into its most opaque tactic yet. It’s so ambiguous that advertisers don’t even have control over the message their audience sees.
- Search Bidding Exploration uses AI/ML to expand targeting and reach new users beyond the existing keyword query matches. However, this comes at the cost of lower ROAS in exchange for broader exposure.
- Generated Display Assets and the Google Ads Conversational Experience utilize AI to assist with tasks such as campaign and asset creation, reducing manual effort but also limiting control.
- Partnership ads are Google’s foray into product marketing in the influencer space on YouTube. While positioned as a way to align brands with creators, the details remain vague, and it’s unclear how much influence advertisers will actually have over placement and messaging.
None of these represent a clear opportunity of benefit for the advertiser. If anything, these reduce any remaining friction between advertiser budgets and Google’s earnings. Instead of clear opportunities, we’re left with increasingly opaque systems that favor Google’s growth over advertiser success.
Of course, I am interested in testing all of these solutions and will report back with my findings. After all, my job is finding out what works and what sucks. More to come…
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