Google is trying to defend its leadership of search advertising by innovating with AI. The latest example, Bidding Exploration, is designed to help advertisers use AI to find advertisers find potentially valuable but overlooked search queries.
Bidding Exploration comes as Google faces increasing pressure to maintain its dominance in the search advertising market. But will this new tool be the answer for advertisers looking to expand their reach, or will it simply lead to runaway ad spending?
What is Bidding Exploration?
Bidding Exploration is an AI-driven tool that aims to help advertisers find new, valuable search queries that may currently be underutilized. It does this by identifying converting queries that typically receive less traffic. Essentially, Google is trying to help advertisers uncover hidden gems in their search campaigns.
How Does Bidding Exploration Work?
The tool is part of Google’s Smart Bidding suite and uses AI to identify those under-the-radar search queries. It then automatically adjusts tROAS targets, allowing advertisers to potentially reach a wider audience than they would have with their standard search terms. Google suggests these best practices to maximize the value of the tool:
- Use Broad Match or Dynamic Search Ads: employ broad match keywords or Dynamic Search Ads in your campaigns to expand reach and capture diverse search queries.
- Operate with an unlimited budget: ensure your campaigns have no budget limitations. Budget constraints can hinder the effectiveness of bidding exploration (or so says Google), potentially leading to temporary disabling of the feature by Google to optimize campaign performance. A yellow warning notification will appear in the settings page if this occurs.
- Maintain existing ROAS targets: when enabling Search Bidding Exploration, retain current ROAS targets. Increasing the ROAS target to offset exploration can restrict the ability to attract diverse traffic and discover new valuable search queries.
- Conduct campaign experiments: To gauge the incremental impact of Search Bidding Exploration, run campaign experiments. This will help you assess the effectiveness of the feature and make informed decisions about its continued use.
Bidding Exploration is currently in a limited Beta. Only select accounts will have access to this feature.
Who Is Bidding Exploration For?
As noted above, Bidding Exploration is designed for campaigns without budget constraints, making it inaccessible to the average small- to medium-sized business. This limitation raises concerns, as the combination of “no budget constraints” and AI-powered advertising can be risky. AI is still learning, and a runaway ad campaign could result in a lot of wasted ad spend.
Why Now?
The timing of this release is interesting. On the one hand, Google’s parent, Alphabet, just announced a very strong 34 percent increase in quarterly profit, beating analysts’ expectations, thanks largely to its advertising and cloud businesses. The company cited its investments in AI as a driver of its strong performance.
On the other hand, Google’s share of the search advertising market is facing challenges, with recent antitrust rulings potentially leading to changes in how Google operates its search units. Additionally, Google’s share of the U.S. search advertising market is projected to dip below 50% by 2025. In light of these challenges, Google is likely looking to innovate and keep advertisers happy.
And it’s clear that AI is the answer.
What Advertisers Should Do
While Bidding Exploration may not be suitable for every business, there are still some takeaways for advertisers:
- Keep a close eye on Google’s AI developments.Google is clearly investing in AI for advertising, and new tools and features are likely to emerge. Stay informed to make the best decisions for your business.
- If you have the budget, consider experimenting with Bidding Exploration.If you’re a larger advertiser with deep pockets, experimenting with this tool could help you expand your reach and find new, valuable customers.
- Regardless of your budget, always monitor your campaigns closely.AI-powered tools can be powerful, but they still require human oversight. Keep a close eye on your campaigns to ensure they are performing as expected.
- Don’t forget the basics.While AI can be helpful, it’s not a magic bullet. Make sure you have a solid foundation for your search campaigns, including well-structured campaigns, relevant keywords, and compelling ad copy.
- Consider other AI-powered advertising options.Google isn’t the only player in the AI advertising space. Explore other options to see what a good fit for your business might be.
Google’s Bidding Exploration tool has the potential to be a valuable asset for large advertisers with the budget to support it. However, it’s essential to approach AI-powered advertising with caution and always monitor campaigns closely. As Google continues to innovate in the search advertising space, staying informed and adapting to new technologies will be critical for success.
True Interactive can help you navigate the changing world of search advertising. Learn about our capabilities on our website.
