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Google has been actively promoting its generative AI tools in recent weeks, showcasing their diverse capabilities such as summarizing search results, aiding in essay drafting, and even enhancing family photos by replacing cloudy skies with sunny ones. Now, Google is demonstrating how these tools can revolutionize its core business—advertising.
The introduction of new generative AI systems for advertising clients enables real-time composition of text that aligns with users’ search queries, along with the rapid generation of product images, eliminating the need for extensive design work and saving both time and money. These features contribute to the growing array of AI-based text and image generators that have been introduced across online services, generating global excitement following the remarkable achievements of ChatGPT and its image counterpart, DALL-E.
As the leading global seller of online ads in terms of revenue, Google has been leveraging AI programs for years to assist clients in targeting users and designing ads, including automated image resizing. With the advent of more powerful AI models capable of generating photo-realistic images and performing other advanced tasks, Google aims to demonstrate the enhanced appeal of its ad business, which already accounts for 80 percent of its total sales.
The recent surge of AI-related announcements by Google has not only generated enthusiasm but also boosted the shares of its parent company, Alphabet, indicating a reduction in concerns about ChatGPT-style web search posing a threat to Google’s search and ad businesses.
While Google is offering these new features to advertisers free of charge, they have the potential to increase revenue by encouraging businesses to place more ads or attract more clicks from consumers through AI-generated text and images. Given Google’s dominant position in online ad sales, the industry could become one of the earliest adopters of generative AI in their workflows. Jerry Dischler, the vice president overseeing Google Ads, explains that this approach allows the delivery of more relevant and visually appealing ads to users, offering advertisers greater creative freedom and improved performance. However, Dischler refrained from discussing specific financial prospects related to generative AI in ads.
As anyone who has experimented with AI chatbots or image generators knows, the output can sometimes be unpredictable or even objectionable, raising concerns about potential copyright infringement in their development.
To address these concerns, Dischler assures that Google will be vigilant in monitoring the quality of images and text generated by the new features, some of which are already available to advertisers in beta form. In comparison, Google is launching these features more broadly than its top competitor, Meta, which recently announced a limited invitation for select advertisers to test its own generative AI capabilities.
It’s worth noting that offering generative AI in ads can be costly due to the high computing expenses associated with operating text- and image-generating models. Aparna Ramani, an executive at Meta AI, highlighted at a recent conference that generating output from such models is 1,000 times more expensive than using AI for content recommendations and user News Feed curation.
One of Google’s notable new features adapts the text of English-language search ads based on user input in the search box, combined with Google’s data on the advertiser. Previously, algorithms had to manually select text from a pre-existing collection provided by the advertiser each time a search was performed.
For example, if someone searches for “skin care for dry sensitive skin,” the text generation option can trigger an ad for a skin cream accompanied by auto-generated text like “Soothe your dry, sensitive skin.” While seemingly incremental, aligning ads more closely with user searches can increase the likelihood of clicks.
Furthermore, Google employs its text-generation technology to offer a chatbot that assists ad customers in obtaining keyword suggestions for advertising and generating text for their ads. Dischler explains that while offering personalized support to millions of advertisers would be ideal, this chatbot serves as the next best solution.
A similar design is being tested by Google in Gmail and Google Docs, where the “Help Me Write” feature has received positive feedback as a creative aid, although some have criticized it for occasionally reinforcing stereotypes. Google’s “Help Me Create My Ad” prompt draws on past campaign data and analysis of a customer’s website, and it will be available to select US advertisers in English starting in July.
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