Google Shopping and Feed Shifts
Google's AI-Powered Shopping Makeover
Google has redesigned the entire shopping experience just in time for Q4 shopping. The changes are still being tested but include AI-generated summaries for searches, dynamic filters, virtual try-on technology, 3D product images, product videos, a personalized home feed based on user preferences and past shopping behavior as well as a dedicated deals page.
Google’s Backend Shopping Updates
Google’s makeover also included updates to the backend. New features were rolled out including the official rollout of Merchant Center Next which includes automated discounts to dynamically adjust product prices and maximize gross profit, profit-based bidding to optimize toward the bottom line, new customer pricing, and loyalty promos for top customers.
Google's AI-Generated Video Creation Tool in Product Studio Google also launched an AI-generated video creation tool within its Product Studio, enabling advertisers to produce video content using product images. This tool leverages AI to simplify video production, making it more accessible to businesses of all sizes.
Google Merchant Center's Checkout Link Feature
Google Merchant Center introduced a checkout link feature, allowing merchants to direct customers from free listings or ads directly to the checkout page. This feature aims to streamline the purchasing process and reduce friction for consumers.
Reemergence of Standard Shopping Campaigns
Google shifted the way the auctions work by walking back a previous decision to have Performance Max trump Standard Shopping whenever the two campaigns entered the same auction. It now is determining auctions based on ad rank which opens up the possibility for Standard Shopping to better compete against PMax. Read more about the update and our strategic recommendations here.
Google Industry Updates
Google's Decision to Retain Third-Party Cookies
After a lengthy will they or won’t they, Google announced that it would retain third-party cookies in its Chrome browser, reversing previous plans to phase them out. However, the reversal of Google’s decision doesn’t mean advertisers should stop looking for other solutions or become reliant on cookies. Check out Code3’s recommendation here.
OpenAI's SearchGPT Integration with ChatGPT
OpenAI integrated Search allows the AI to access real-time web data. This development enhances the AI's ability to provide up-to-date information, improving the relevance and accuracy of responses. This is a significant update as it puts ChatGPT one step closer to competing head-to-head with Google for Search market share.
Perplexity's Introduction of Sponsored Follow-Up Questions
Perplexity, an AI answer engine, started testing sponsored follow-up questions as a form of advertising. These sponsored questions appear alongside organic responses, offering a new avenue for advertisers to engage users, and making Perplexity a competitor Google can’t ignore.
Google's Antitrust Trial Over Advertising Model
Google faced significant antitrust scrutiny in 2024, culminating in a federal judge ruling that the company maintained an illegal monopoly in online search. The U.S. Department of Justice proposed remedies, including the divestiture of Google's Chrome browser and restrictions on default search agreements, aiming to dismantle Google's dominance and foster competition. These developments signal a potential restructuring of Google's business operations and could significantly affect the industry's competitive landscape.
Other Notable Shifts
Google Ads' Broad Match Default Setting
Google Ads updated its default settings for new search campaigns to include broad match keywords. This change is designed to expand reach and capture a wider audience, though it necessitates careful monitoring to maintain relevance and cost-effectiveness.
Upgrade from Video Action Campaigns to Demand Gen
Google announced the transition from Video Action Campaigns to Demand Gen campaigns, aiming to drive better performance through enhanced targeting and creative capabilities. A migration tool similar to what was seen for Smart Shopping to PMax will be rolled out in early 2025 to aid in the transition. Starting in March 2025, new Video Action campaigns will no longer be able to be created. In Q2 2025 automatic upgrades will take place for any remaining Video Action campaigns.
Google's Integration of Ads into AI-Powered Search Overviews
Google began incorporating advertisements into its AI-generated search summaries, allowing products to appear under a "sponsored" header in responses to queries with a commercial intent. This integration aims to connect users more efficiently with relevant businesses and products, marking a significant shift in how ads are presented within AI-driven search experiences.
Google Sunsetting Call Ads
Google announced a significant update requiring advertisers to transition their Call Ads to the Responsive Search Ads (RSA) format. This change mandates the inclusion of landing pages and business names at the campaign or account level. Existing Call Ads lacking final URLs will not migrate automatically, necessitating manual updates. The shift aims to enhance ad flexibility, reach, and asset management, with Google assuring that ad performance will remain unaffected.
Gen AI Updates
Google rolled out AI-powered image editing, such as background removal, removal or addition of objects, color adjustments, cropping, and the ability to include brand guidelines in all of this. They also expanded the AI-powered editing to additional campaign types like Demand Gen, App and Display.
Google's Launch of Circle to Search Feature
Google introduced the "Circle to Search" feature, enabling users to search any content on their Android phone screens without switching apps. This functionality allows for seamless information retrieval by simply circling, highlighting, or tapping on images, text, or videos, enhancing the overall search experience.
Microsoft Updates
Microsoft's AI-Powered Asset Recommendations
Microsoft Ads launched AI-powered asset recommendations for video and display ads, assisting advertisers in creating more effective and engaging content. This tool leverages artificial intelligence to create videos and images based on a URL input.
Microsoft Advertising's Performance Max Brand Lists
Microsoft Advertising introduced Performance Max brand lists, allowing advertisers to specify brands they want to exclude their ads from appearing alongside. This feature offers greater control over brand representation and targeting precision.
There was no shortage of product developments and advancements in paid search in 2024 - we’re tired just writing this blog! Together, these developments collectively highlight a year of innovation and strategic shifts in the paid search industry, emphasizing the growing role of artificial intelligence, enhanced targeting, and a focus on user experience.