In the ever-changing digital climate that we live in, Google is leaning more and more into automation and AI. But what does that mean for PPC?
Google is incorporating automation into Google Ads accounts in many ways, and it has been actively encouraging marketers to embrace these for some time now.
Essentially, Google wants you to give them more power. They want to be able to dictate when your ads show, which search terms they appear for, and how much you should be paying for a click. They want you to give them the basics, turn on smart bidding, and let them do the rest. However, the impact of embracing all of this is not always positive, particularly for someone who is not a Google Ads veteran. Here, we’ll highlight a few of the potential problems that automation can lead to if you are not careful.
Keyword match types & close variants
Keyword match types have changed a lot in recent years. The matching definitions have become looser and looser. It used to be that searches for exact-match keywords had to match the keyword identically for your ad to appear, and ads for phrase-match keywords would only appear if the search contained your keyword with words before or after it. That is no longer the case. The introduction of ‘close variants’ means that your ads can appear for much broader searches, with Google’s definition of close variant stating that:
"Keywords will match to searches that are similar, but not identical to the targeted keyword."
To understand the full story, let's break it down with a comparison of "old" PPC vs. "new" PPC:
The importance of monitoring and negative keywords
With the introduction of looser keyword match types and close variants, it’s more important than ever to keep a close eye on search term reports. This is where negative keywords come into play. By regularly updating your negative keyword list, you can prevent your ads from showing for irrelevant searches that could waste your budget. Neglecting this can lead to poor performance and lower ROI, particularly in highly competitive markets.
Default settings
When setting up a new campaign, many settings are enabled by default, allowing Google Ads automation to work. Unless you are very careful, you can soon waste large chunks of your budget on searches, placements, and locations that you do not want to target or that are irrelevant to your business. These are some of the settings that are turned on by default that you should be aware of.
Including Search Partners.
Including Google Display Network.
The ‘Presence or Interest’ location targeting option.
Automated Assets.
Budgets
Although you assign a daily budget, Google does not work to this on a daily basis. Google averages your daily spend over a month (or 30.4 days to be precise). This means that although you shouldn’t overspend across a month, if you want to run shorter campaigns, or you want to front load or back load a budget based on seasonality, it becomes much more difficult to hit your spending target.
For example, at Bluesoup, we had a campaign that had a daily budget of £100, and it actually spent £723 in a week!
Auto-apply recommendations
One of the most significant automation features introduced by Google Ads is the auto-apply recommendations. Google suggests changes to your campaigns, which can be automatically implemented unless you opt out. While this can save time, it also has the potential to steer your campaigns in directions you might not have chosen. For instance, Google might increase bids or broaden targeting criteria to capture more traffic, which could lead to increased spending without a corresponding rise in conversions. It's essential to regularly review these recommendations and disable the auto-apply option if it doesn't align with your strategic goals.
Automatically created assets
Google Ads now automatically generates assets like headlines, descriptions, and even ad variations. While this can be a boon for time-strapped marketers, the quality and relevance of these assets can be hit or miss. These auto-generated assets often lack the granularity and brand-specific messaging that human-crafted content can provide. Thus, it’s vital to monitor and modify these assets to ensure they meet your brand's standards and campaign objectives.
Performance Max campaigns: the "black box”
Performance Max campaigns are one of Google's latest forays into full automation. These campaigns combine various ad formats under one umbrella and rely heavily on machine learning to optimise performance.
While this sounds promising, the reality is that Performance Max operates very much like a "black box." Advertisers have limited control and visibility into where ads are being placed, which can make optimisation and strategic adjustments difficult. It's crucial to weigh the benefits of automation against the need for transparency and control in your advertising strategy.
The push for Google’s recommendations
Google representatives are known to be quite persistent in encouraging the adoption of its automated features and recommendations. However, these recommendations often prioritise increasing ad spend over improving performance metrics that matter most to you, such as conversion rates or return on ad spend (ROAS).
It’s advisable to carefully evaluate these recommendations, weighing the potential benefits against your specific campaign goals and budget constraints.
What does the future hold for Google?
Looking ahead, automation is something that everyone is going to have to accept, if not embrace. The meteoric rise of Performance Max and the launch of Google Gemini indicate that Google is going to continue to journey into the world of automation and AI. And we are by no means saying that this is a bad thing; if used correctly, it can produce great results and really enhance ROI. But it is something that needs the human touch.
Allowing Google to dive head-first into automation can have disastrous consequences for your campaigns. But if you work with it, and use it alongside some human guidance, then it can be the vehicle that Google want you to think that it is. You just need someone to drive that vehicle.
How you can be prepared for change
To stay ahead in this evolving landscape, it is crucial to continuously educate yourself about the latest Google Ads updates and AI advancements. Leverage analytics to understand how automation is impacting your campaigns, and be ready to make manual adjustments when necessary.
Partner with experienced PPC professionals who can help navigate the complexities of automated systems while still applying the strategic thinking that only humans can provide.
