Google Launches New Video Campaign Types

Google Launches New Video Campaign Types

Google YouTube

Nine out of 10 marketers use video as a marketing tool – an all-time high, according to HubSpot. Ninety six percent of marketers  — more than at any point in the past nine years — told HubSpot they see video as an “important part” of their marketing strategy. So it’s no surprise that Google continues to roll out new tools to help marketers capitalize on video advertising.

At Google’s May 23 Marketing Live event, the company launched new ad products intended to capitalize on video:

Video View Campaigns

The main goal of Video View Campaigns is to drive as many views as possible at the lowest cost per view (CPV). Google suggests that these campaigns can potentially increase views by an estimated 40 percent in comparison to the conventional skippable in-stream cost-per-view campaigns. This is achieved by integrating different ad formats, including skippable in-stream ads, in-feed ads, and Shorts ads, and letting Google-powered AI dynamically optimize where the ads are served. This new campaign type sounds ideal for advertisers looking to maximize views by running different ad formats (on different YouTube placements) under a single campaign, instead of splitting creatives by ad format into multiple campaigns. The global launch of the Video Views Campaigns beta is scheduled for the coming month. Ultimately, Google hopes to offer advertisers a broader range of alternatives for connecting with their target audience.

Demand Generation Campaigns

Demand Generation Campaigns are crafted to use AI to engage consumers and motivate them to take action. These campaigns will run on different platforms, such as YouTube Shorts, YouTube in-stream, YouTube in-feed, Discover, and Gmail placements. In contrast to the prior lead form ads, the call to action for these campaigns will direct users to the advertiser’s website, which (says Google) should facilitate simpler conversion tracking.

A noteworthy aspect of Demand Generation Campaigns is the development of lookalike segments based on seed lists. These lists may include first-party data and YouTube users, enabling enhanced targeting through the implementation of lookalike segment settings: narrow (2.5 percent reach), balanced (5 percent reach), and broad (10 percent reach). Ad creatives can be specifically designed for these lookalike segments – which, in theory, should improve the chances that the ads resonate with target audiences.

The development of lookalike segments based on seed lists is a departure from Google’s recent announcement regarding the phaseout of Similar Audiences. When Google first announced the sunsetting of Similar Audiences back in November 2022, Google mentioned that “similar audiences will be transitioned to more durable solutions.” At the time, it appeared as though Google was referring to audience expansion and optimized targeting, which are simple toggles an advertiser can enable or disable for any given audience to have Google find more users that either look like an advertiser’s target segments or are likely to convert. That said, it’s possible that Google is restricting the capabilities of Similar Audiences as we know them by removing them from an advertiser’s view, and reintroducing a more restricted version of these calling them Lookalike Audiences just as we are seeing for Demand Generation Campaigns.

While we were able to create Similar Audiences off rule-based segments such as visitors of “/shop/collections/jackets,” the new Lookalike Audiences seem to only allow the use of first-party or YouTube audiences for their creation. I am curious to see if Google makes Lookalike Audiences available for other campaign types in the near future, or if it still limits their use to Demand Generation video campaigns.

What Advertisers Should Do

We urge advertisers to take an even-handed, critical approach with these new products. Google plays up benefits, but with the benefits come some caveats. As I blogged recently, Google’s ad products have lately been launching without giving advertisers adequate control and visibility into performance so we can clearly see what is working and what is not and adjust our strategy accordingly. This is not to say Google is releasing bad products – but they should provide more visibility and control rather than take a “Just trust Google – we know what we are doing” stance.

At True Interactive, we advocate on behalf of our clients. We are monitoring these developments closely. Contact us to learn how we can help you succeed in all forms of digital advertising.

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How Google Is Transforming Advertising with AI

How Google Is Transforming Advertising with AI

Artificial Intelligence Google

The Big Tech firms continue to change the online advertising landscape with AI. For example, on May 23 at Google’s Marketing Live event, Google announced new ways that the company is incorporating AI into advertising online. Google has been integrating AI into advertising for quite some time, as we have blogged. Google’s latest announcements make AI an essential tool now for any advertiser that works with Google. Here are some highlights:

Simplifying Campaign Management through Conversational Interfaces

Google said that it is introducing a new, natural-language conversational experience within Google Ads. This feature is designed to streamline the process of creating campaigns and to simplify the management of search ads.

The feature works this way: an advertiser adds a preferred landing page from your website, and Google AI summarizes its content. From there, Google will generate a range of (presumably more relevant) elements for your campaign, including keywords, headlines, descriptions, images, and other assets. Before deploying the generated suggestions, you have the flexibility to review and make edits. And, you can engage in a conversation with Google AI to enhance your campaign’s performance.

In the near future, Google says it will enhance automatically created assets (ACA) for search ads, which use existing ad content and landing pages to generate headlines and descriptions.

ACA also applies generative AI to create and adapt search ads more effectively based on the specific context of a query. For instance, let’s say a user searches for “skin care for dry sensitive skin.” With the assistance of AI, Google can analyze the content from your landing page and existing ads to generate a headline that aligns even more closely with the user’s query, such as “Soothe Your Dry, Sensitive Skin.” Google says this approach improves the relevance of your ads while staying true to your brand identity.

Helping Advertisers with Performance Max

Performance Max is a goal-based campaign type that allows performance advertisers to access all of their Google Ads inventory from a single campaign. According to Google, advertisers who use Performance Max have experienced an average increase of over 18 percent in conversions, all while maintaining a similar cost per action. However, it must be noted that at True Interactive, we’ve not witnessed these kinds of returns with Performance Max and remain very cautious about its value. That said, to improve the capabilities of Performance Max, Google is introducing generative AI technology. Google says that this addition will make it easier for advertisers to create customized assets and expand their reach with just a few clicks. Google AI will learn about your brand and populate your campaign with relevant text and other assets. Moreover, Google will suggest unique and tailored images exclusively generated for your brand.

This feature will also be integrated into the new conversational experience within Google Ads.

Introducing Enhanced Ad Experiences through Generative AI

During Google’s recent conference for developers (Google I/O – which is separate from its May 23 marketing event), Google unveiled new capabilities in generative AI that will promise to change search. This feature, known as search generative experience (SGE), uses generative AI to share answers to queries in the form of complete “snapshots” of content instead of providing a few rich snippets and links to websites for more information. Search can unfold as a series of questions and follow-up questions that the searcher refines (similar to ChatGPT prompt).

Earlier, Google had demonstrated how ads would appear both above and below this immersive new experience. On May 23, Google said it will conduct extensive experimentation to integrate search and shopping ads into the AI-powered snapshot and conversational mode. Additionally, Google will explore ad formats native to SGE, using generative AI to create relevant and high-quality ads tailored to every step of the user’s search journey (although how well Google will do this remains to be seen).

For instance, let’s consider a scenario where someone is searching for “outdoor activities to do in Maui” and then further narrows down their search to include “activities for kids” and ‘surfing.” In this case, they may encounter a fully personalized ad from a travel brand promoting surfing lessons specifically designed for children.

When search ads are displayed, they will include ad labels, with the “Sponsored” label presented in bold black text. This ensures a clear distinction between ads and organic search results, prioritizing a user-centric approach.

Three Implications for Advertisers

We advise advertisers to embrace AI (there really is no choice now – Google is bringing AI to your ad campaigns whether you like it or not). But do so carefully.

1. We Need Visibility and Control

Given that this year’s event was focused on artificial intelligence and automation (as expected), I would argue that both things empower advertisers to deliver incremental results, yet we need to have at least some degree of control over these, and more importantly, we need visibility into performance so we can clearly see what is working and what is not (they shouldn’t be mutually exclusive) and adjust our strategy accordingly.

2. Be Careful with ACA

I mentioned earlier that Google is enhancing automatically created assets (ACA) for search ads, which use existing ad content and landing pages to generate headlines and descriptions.

Incorporating generative AI into ACAs can potentially improve the relevance of advertisements. By using data from other ads and landing pages to improve query matching, ads can become more dynamic and effective, provided you are comfortable with relinquishing control to Google’s AI. this technology holds the potential to significantly boost the relevance of your advertisements, yet it may not be the ideal choice for heavily regulated industries or brands that adhere strictly to compliance standards. By fully handing over control to AI, Google gets the final say in your ad’s content. It’s important to remember that advertisements are subject to FTC regulations, and with ACAs, you will not have assurance over the message that will be displayed.

3. Treat Performance Max with Caution

At True Interactive, we are not quite ready to call ourselves Performance Max enthusiasts considering the limited control advertisers have over these campaigns and lack of visibility into performance. Although we would certainly encourage everyone to try it (if they have the money to spare), we would also recommend exercising special caution, as this campaign may cannibalize traffic from other campaigns being run under the same ad account (such as Search Brand campaign), and therefore hurt the overall performance of Google Ads.

Contact True Interactive

At True Interactive, we advocate on behalf of our clients. We are monitoring these developments closely and assessing how to incorporate conversational AI. Contact us to learn how we can help you succeed in all forms of digital advertising.

Why Google’s Search Generative Experience Matters to Advertisers

Why Google’s Search Generative Experience Matters to Advertisers

Google

Google made its strongest commitment to AI to date at its annual developer conference, Google/IO. The company announced a number of changes to its core products as well as new capabilities powered by AI, especially generative AI. They include:

Bard Available for Everyone

Google’s Bard AI is a powerful tool that can be used for a variety of tasks, including browsing the internet, searching for information from photos, writing code, and working with other apps. Bard is available to everyone, and it does not require a waitlist.

Bard Plugins Are Here

Bard plugins are a new way to extend the capabilities of Bard. There are currently a number of plugins available, including plugins for OpenTable, Kayak, Spotify, Walmart, and Indeed. These plugins allow you to use Bard to do things like make restaurant reservations, book flights, create playlists, and order groceries.

Gmail Is AI-Powered

Google’s new “Help me write” feature in Gmail uses AI to help you write emails. Simply type in a one-line prompt, and AI will automatically generate the rest of the email for you. You can then refine the email as needed.

Google Photos Get a Dose of AI

The new “Magic Editor” feature uses AI to help you edit your photos. You can use Magic Editor to change the lighting, remove objects, and adjust your position in photos. Magic Editor makes it easy to edit your photos like a pro.

Search Gets an Upgrade with the Search Generative Experience

But perhaps the most significant change: the launch of a new search feature, search generative experience (SGE). SGE uses generative AI to share answers to queries in the form of complete “snapshots” of content instead of providing a few rich snippets and links to websites for more information. Search can unfold as a series of questions and follow-up questions that the searcher refines (similar to ChatGPT prompt).

At the event, Google’s vice president of of Search, Liz Reid, demonstrated SGE by searching for “why is sourdough bread still so popular?”. The search results appeared almost immediately, and above them was a rectangular orange section that pulsed and glowed with the phrase “Generative AI is experimental.”

After a few seconds, the glowing section was replaced by an AI-generated summary of the search results. The summary included several paragraphs about the taste of sourdough bread, its prebiotic abilities, and other factors that contribute to its popularity. To the right of the summary were three links to websites that Reid said “corroborated” the information in the summary.

On Google’s blog, Reid provided even more context. She shared the example of a searcher asking, “What’s better for a family with kids under 3 and a dog, bryce canyon or arches.” Normally, a searcher might break this one question down into smaller ones, sort through the information available, and start to piece things together themselves. With generative AI, search can do some of that heavy lifting for you.

When SGE becomes available, searchers will see an AI-powered snapshot of key information to consider, with links to dig deeper.

Google Search

Below this snapshot, you’ll see suggested next steps, including the ability to ask follow-up questions, like “How long to spend at Bryce Canyon with kids?” When you tap on these, it takes you to a new conversational mode, where you can ask Google more about the topic you’re exploring.

Context will be carried over from question to question, to help you more naturally continue your exploration. You’ll also find helpful jumping-off points to web content and a range of perspectives that you can dig into.

How Will Ads Work in SGE?

Google said that SGE will feature search ads from the start. Advertisers will not be able to opt out of showing ads on the new search experience, at least not initially. Google will be closely monitoring the performance of ad placements and experiences during this experimental phase.

SGE ads will be displayed in dedicated ad positions and slots, and will be labeled as “sponsored ads.” Google said it will continue to test and adapt ads so that they provide relevant and useful results for searchers.

Here are some additional details about how SGE ads will work:

  • Ads will be displayed in a variety of formats, including text, images, and videos.
  • Ads will be targeted based on a variety of factors, including the search query, the user’s interests, and the user’s location.
  • Ads will be subject to Google’s advertising policies, which are designed to ensure that ads are relevant, useful, and non-misleading.

SGE ads will be a “native part” of the new search experience. The company believes that ads can be a valuable tool for helping users find the information they need, and that SGE ads will be no exception. Here is a screenshot of ads in the desktop user experience of SGE:

Ads in Google Search

As Google Search evolves with the introduction of the SGE, it will be important to track how your ads perform in this new environment. However, as SGE is still in its experimental phase, you will not be able to immediately track how your ads perform differently in SGE versus the old Google Search.

The generative AI feature is still under development, but it has the potential to change the way people search for information online. By providing users with a concise and informative summary of the search results, the feature can help people find information quickly and easily. Only time will tell how SGE ads will be received by users. However, Google is confident that the new search experience will provide a more relevant and useful search experience for everyone.

Contact True Interactive

At True Interactive, we advocate on behalf of our clients. We are monitoring these developments closely and assessing how to incorporate conversational AI. Contact us to learn how we can help you succeed in all forms of digital advertising.

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Google Accelerates AI-Driven Search

Google Accelerates AI-Driven Search

Google

The New York Times reported recently that Google is accelerating its efforts to rethink search with AI. For example, Google is using AI to better understand user intent, refine search queries, and deliver highly relevant results. And as we have blogged, Google continues to incorporate conversational AI into search via the Bard tool. This heightened level of personalization in search results and the incorporation of conversational AI will challenge businesses to, in turn, create more conversational and personal content – both paid and organic.

According to the New York Times, the new search experience “would learn what users want to know based on what they’re searching when they begin using it. And it would offer lists of preselected options for objects to buy, information to research, and more. It would also be more conversational — a bit like chatting with a helpful person.”

In addition, reinventing search “would keep ads in the mix of search results. Search queries that could lead to a financial transaction, such as buying shoes or booking a flight, for example, would still feature ads on their results pages.”

This is significant. Some technology/business watchers have speculated that conversational AI is a threat to Google Search. That’s because conversational AI responds to queries with a single answer that synthesizes information, which could upend how Google Search provides answers with links to information.

Currently Bard does not feature ads in its user interface, and ads generated $225 billion for Google in 2022. But Bard could incorporate ads – for instance, by providing links for more information along with ads; sponsored chatbot replies; and other ad interfaces that I am sure Google is dreaming up.

Simply put, Google is not going to toss out $225 billion in revenue.

Moreover, the AI-driven search engine prioritizes quality over quantity, encouraging businesses to invest in better content and optimize their websites for user experience. This shift will lead to a more competitive market where only the most relevant and high-quality content will thrive, pushing businesses to continuously innovate and adapt their online presence.

Google is trying to protect its core advertising business by making search more conversational and personal with AI. Businesses need to be ready. To be visible in Google’s world, enterprises will need to take content personalization to another level. For example, websites and Google Business Profiles will need AI to change their content rapidly and continuously based on dynamic search behavior just to keep up with AI-powered search. And say goodbye to boring chat interfaces. Chat is entering a new realm of personal, human-sounding user interfaces as AI takes hold.

Google has been changing search with AI for some time, but the rise of OpenAI’s ChatGPT conversational AI tool has accelerated those efforts. According to the New York Times, the AI push kicked into high gear when Samsung said it was considering replacing Google with Microsoft’s Bing as the default search engine on its devices. Switching to Bing could cost Google an estimated $3 billion in annual revenue if Samsung were to switch.

Alongside an overhaul, Google is also working on a number of fascinating side projects. As reported,

Other product ideas are in various stages of development. A tool called GIFI would use A.I. to generate images in Google Image results. Another tool, Tivoli Tutor, would teach users a new language through open-ended A.I. text conversations.

Yet another product, Searchalong, would let users ask a chatbot questions while surfing the web through Google’s Chrome browser. People might ask the chatbot for activities near an Airbnb rental, for example, and the A.I. would scan the page and the rest of the internet for a response.

At True Interactive, we advocate for our clients as we navigate the rapidly evolving world of advertising and content creation online. Follow our blog for more insight!

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

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Why the Demise of the Google/Meta Ad Duopoly Is Good News

Why the Demise of the Google/Meta Ad Duopoly Is Good News

Google Meta Walmart

Recently there’s been some considerable discussion about the demise of the so-called advertising duopoly. This refers to the speculation that Google’s and Meta’s dominance of the online advertising industry is fading as their share of online advertising shrinks. As reported widely, Google and Meta are expected to bring in less than half of all U.S. digital advertising in 2023 for the first time since 2014. Here’s what the number say:

  • Google and Meta will together capture 48.4 percent of all U.S. digital ad revenue in 2023 — 28.8 percent for Google and 19.6 percent for Meta — down from 54.7 percent at their peak in 2017, when Google’s ad revenues account 34.7 of the market, and Meta accounted for 20.0 percent. per data from Insider Intelligence.

But let’s not shed any tears for Google and Meta. They are doing just fine. Google generated an astounding $282 billion in advertising in 2022. And Meta, following a difficult 2022, is rebounding strongly as the business shifts its advertising model from tracking third-party cookies to first-party customer data.

No, the duopoly isn’t fading, exactly. But the online ad world is getting more crowded. For instance:

Amazon Ads is nearly a $40 billion business.

  • TikTok is expected to earn $8.6 billion in ad revenue in 2024 – assuming TikTok doesn’t get banned in the United States.
  • A host of retailers ranging from Walmart to Walgreens have entered the online advertising, business. They’re using Amazon Ad’s blueprint: tap into the consumer behavior data they collect from their own customers (known as first-party data) to develop targeted ad products. Retail media at the global level is forecast by WARC to be the fastest-growing marketing channel this year, reaching $122 billion in revenue.
  • Several companies outside of retail such as Airbnb and Uber are doing the same thing with their first-party data as retailers are: developing ad businesses. They’re smaller, but they are significant.

The growth of Walmart’s ad division, Walmart Connect, is an example of how varied the online advertising world has become. Recently Walmart said that Walmart Connect grew 41 percent year-over-year in the fourth quarter of 2022. Its ad operations were up 20 percent over the period and jumped nearly 30 percent in 2022, generating $2.7 billion for the full year.

Walmart enjoys a significant advantage: it operates a strong eCommerce business to complement its mammoth chain of retail stores. This gives the company a large audience online and offline to develop and deliver targeted ads. During the runup to Black Friday during the 2022 holiday season, Walmart even enjoyed stronger search traffic than Amazon did.

Walmart has developed several ad units. They include:

  • Search to make products found on Walmart’s digital sites such as Walmart.com.
  • Display on Walmart’s site and across the web.
  • In-store to make a brand visible on digital ads in Walmart stores, such as in self-checkout lanes, or as a “commercial” on in-store TVs adding to the number of replacements for linear TV.

A number of businesses, such as Kraft Heinz, report improvements in sales lift by working with Walmart on ad campaigns across Walmart properties.

The rise of alternatives to Google and Meta is good news for businesses for a few reasons:

  • More competition gives advertiser more choice. The rise of retail networks is a good example. Businesses can tap into more refined first-party data from each retailer to target different audiences. For instance, the Macy’s media network gives advertisers entrée to a more style conscious consumer.
  • More competition means that Google and Meta need to improve their own ad products. For instance, the popularity of TikTok has forced Meta to develop short-form video content, Reels, with ad products to go with them.

We suggest advertisers capitalize on the proliferation of ad platforms wisely. Focus on the platforms that provide the strongest ROI while experimenting with emerging platforms that are aligned with an audience you have been wanting to reach (e.g., TikTok for Gen Z) and channels that are untapped to you.

At True Interactive, we can help. We possess experience with both the established ad platforms and emerging ones. Learn about our services hereContact us to learn how we can help you.

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True Interactive Named a 2023 Google Premier Partner

True Interactive Named a 2023 Google Premier Partner

Google

One of the ways True Interactive advocates for our clients is by forming strong relationships with the leading ad tech companies in the world. And Google is certainly one of them. Google commands the largest share of the online advertising market. The company generated an astounding $282 billion in advertising in 2022. We maximize the value of our clients’ ad spend on Google, and doing that gives us deep knowledge of Google. So, we are pleased that True Interactive has been recognized as a Google 2023 Premier Partner.

“Partner” is more than a general description of a company that works with Google. To Google, the word has a specific meaning. Becoming a Google Partner means that your company is recognized for maximizing campaign success for your clients, driving client growth by maintaining clients’ campaigns, and demonstrating Google Ads skills and expertise with certifications.

Google says we are in the top three percent of its partners. The top three percent is evaluated on an annual basis and is determined by a number of factors, including but not limited to: client growth, client retention, product diversification, and annual spend. This means we enjoy a number of benefits that make us a more knowledgeable ad agency, such as:

  • Product betas: access to the most current product betas through ongoing, summarized reports.
  • Insights briefings: the latest insights from Google to stay ahead of changing consumer behaviors and industry trends.
  • Promotional offers: Google Ads credits, which we apply to the benefit of our clients.
  • Invite-only industry events, such as roundtable discussions with Google leaders, sessions with other Premier Partners, and opportunities to hear from industry thought leaders.

We are honored to be Premier Partner. Thank you to Google, our clients, and to the incredibly talented team at True Interactive that turns insights from Google into a better experience for our clients.

Contact True Interactive

We help our clients succeed with online advertising. Learn more about our services here and our work here. And contact us to learn how we can help you.

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Google and Microsoft Go All-In with AI-Powered Search

Google and Microsoft Go All-In with AI-Powered Search

Bing Google Microsoft

On our blog, we speculated that Google would launch its own conversational AI assistant for search as a response to the popularity of ChatGPT. Well, within hours, we had our answer, and then some: not only did Google launch a new conversational AI tool for search — so did Microsoft.

What Google Announced

On February 6, Sundar Pichai, CEO of Google and its parent company Alphabet, announced the launch of Bard, which he characterized as an experimental conversational AI service. Importantly, though, Pichai was careful to qualify how Google is moving forward. Instead of dropping the tool publicly as OpenAI did, Google is making Bard available to a team of “trusted testers” before making the tool publicly available “in coming weeks.”

This is a big difference in approach from OpenAI. Essentially Pichai was signaling, “We’re Google. We’re not going to risk our brand’s reputation by rushing something to the market until it’s ready.” By contrast, OpenAI made it clear that the company was going to crowdsource feedback from the public and make ChatGPT better – the “get to the market fast with an imperfect solution and make it better” approach that typifies Silicon Valley start-ups.

Google left start-up mode a long, long time ago.

According to Search Engine Land, the “trusted testers” vetting Bard are a demographically and geographically diverse group of people external to Google — an important consideration clearly designed to mitigate against bias – and bias is a problem that has vexed ChatGPT.

Bard is going to function as ChatGPT does now: synthesizing information to provide more complete, contextual responses to queries the way voice search has always promised to do. In Pichai’s words:

Bard can be an outlet for creativity, and a launchpad for curiosity, helping you to explain new discoveries from NASA’s James Webb Space Telescope to a 9-year-old, or learn more about the best strikers in football right now, and then get drills to build your skills . . . When people think of Google, they often think of turning to us for quick factual answers, like “how many keys does a piano have?” But increasingly, people are turning to Google for deeper insights and understanding — like, “is the piano or guitar easier to learn, and how much practice does each need?” Learning about a topic like this can take a lot of effort to figure out what you really need to know, and people often want to explore a diverse range of opinions or perspective.

And, he added that Bard will be incorporated into Google Search soon. Here’s a screen shot of how the interface might look, courtesy of Google:

This is quite an announcement, to be sure. As we blogged, it was known that Google had been developing conversational AI technology for quite some time – but the company was not ready to take it public. However, as a result, OpenAI was enjoying all the glory and credit for ChatGPT’s remarkable conversational abilities. On top of that, Microsoft invested billions of dollars into OpenAI and was reportedly incorporating ChatGPT into Bing Search.

Microsoft Drops an AI Bomb

And, speaking of Microsoft: on February 7, the company confirmed that indeed conversational AI was coming to Bing Search — not based on ChatGPT exactly, but a more powerful form of the tool. Microsoft shared a new version Bing, powered by an upgraded version of the same AI technology that underpins chatbot ChatGPT. The company is launching the product alongside an upgraded version of its Edge browser. This means that that the two will provide a new experience for browsing the web and finding information online.

The “new Bing” (in Microsoft’s words) offers a chat function, where users can ask questions and receive answers from the latest version AI language model built by OpenAI. Users can also create itineraries for trips. So, for example, you can ask it to “Plan a five-day trip to Mexico.” It’s available in preview mode at Bing.com.

Following the announcement, Yusuf Mehdi, Microsoft Corporate Vice President & Consumer Chief Marketing Officer, shared more detail on the Microsoft blog. Among other things, he elaborated on how Bing’s chat functionality can help with ideation, whether writing content or planning something:

There are times when you need more than an answer – you need inspiration. The new Bing can generate the content to help you. It can help you write an email, create a 5-day itinerary for a dream vacation to Hawaii, with links to book your travel and accommodations, prep for a job interview or create a quiz for trivia night. The new Bing also cites all its sources, so you’re able to see links to the web content it references.

Here is a depiction of the experience from the post:

He also elaborated on how the Edge browser is being improved with AI, via chat and compose. With the Edge Sidebar, you can ask for a summary of a lengthy financial report to get the key takeaways – and then use the chat function to ask for a comparison to a competing company’s financials and automatically put it in a table. You can also ask Edge to help you compose content, such as a LinkedIn post, by giving it a few prompts to get you started. After that, you can ask it to help you update the tone, format and length of the post. Edge can understand the web page you’re on and adapts accordingly.

As we learn more about Microsoft’s announcement, we’ll share more.

Many questions remain, such as:

  • Whether a conversational AI will actually improve the search experience given nagging problems with providing wrong answers and biased information. As The Verge noted, “AI language systems like ChatGPT have a well-documented propensity for presenting false information as fact.”
  • How Google and Microsoft will incorporate conversational AI into Search without harming their core advertising business. As noted, conversational AI tools flourish by giving searchers concise responses instead of links to other sites. Google’s ad model depends on people staying engaged on Google Search clicking on links. Microsoft’s ad business, though nowhere near the size of Google’s, also depends on clicks and engagement.

For now, we suggest that businesses watch the developments closely and experiment with conversational AI. No doubt Google and Microsoft will provide more context on how the interplay with their ads will work. At True Interactive, we are staying in close contact with Google and Microsoft and will report developments as we learn about them.

Don’t change your ad strategy. We’re in early days.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.