Reuters – Alphabet Inc’s Google said on Tuesday it would begin experimenting with ads within search results using generative artificial intelligence to fend off rival Microsoft in the lucrative search advertising market.
Over the past few months, Google and Microsoft have intensified their race to change the way people search for information by incorporating generative AI into their search engines. Generative AI can provide conversational written responses to queries, synthesize information online, and display relevant websites.
AI capabilities will also change the way advertisers reach consumers through search engines, a market estimated to grow to $286 billion this year, according to research firm MAGNA.
For example, if a user searches for “hiking backpack for kids” on the new version of Google, the AI may show ads for specific backpacks and tips on how to choose the best backpack for kids, Google says. Stated.
“This is a new, simpler and more convenient way to interact with Google Search,” said Jerry Dischler, vice president and general manager of advertising, in an interview. “It will be a great opportunity to provide a fun user experience that will lead to new commercial opportunities in the future.”
Earlier this month, Google announced a new version of its search engine called “Search Generative Experience,” which will roll out over the next few weeks via a waitlist.
Dishler said the company plans to test new ad placements using existing ads that appear in traditional Google searches.
At its annual Google Marketing Live Event on Tuesday, Google also announced a new conversational chatbot to help brands with their ad creation process.
Google says that when an advertiser types into a website, the AI chatbot will recommend headlines, specific keywords and images to include in the ad to grab the consumer’s attention.
Tech giants already offer tools that can automatically generate ads for brands. Google says the tool will have generative AI capabilities that will allow it to create ads based on the context of a user’s query.
When consumers search for products for dry and sensitive skin, Google may automatically create ads for skin care brands with the headline “Soothes dry and sensitive skin,” the company said.
Google is the leader in search advertising, but Microsoft is fast becoming a challenger with its new features.
Microsoft has already begun testing ads on its search engine powered by Bing AI and held meetings with ad agencies in February.
(Dallas-based reporter Sheila Dunn, edited by Chizu Nomiyama)
Copyright 2023 Thomson Reuters.
