Google is set to integrate generative artificial intelligence into its advertising business in the coming months, joining other major tech companies in adopting the technology. Based on an internal presentation for advertisers obtained by the Financial Times, the Alphabet-owned company plans to utilize AI for generating unique ads using materials provided by human marketers.
AI-powered ads 2023. The presentation, titled “AI-powered ads 2023,” describes how generative AI opens up new possibilities for creativity. While Google already employs AI in its advertising to create simple prompts that encourage users to make purchases, the introduction of generative AI, which also powers its Bard chatbot, will enable the creation of more sophisticated campaigns akin to those made by marketing agencies.
How it works. According to the presentation, advertisers can submit creative content such as images, videos, and text related to a campaign, and the AI will “remix” these materials to generate ads that target specific audiences and meet objectives like sales targets. However, there are concerns that the tool could disseminate misinformation, as AI-generated text can confidently assert falsehoods.
One individual familiar with the presentation commented that the AI is optimized for converting new customers and does not have an understanding of truth. Google informed the Financial Times that it intends to implement strict safeguards to prevent such errors, or “hallucinations,” as it rolls out its new generative AI features.
AI- so hot right now. This development comes amid growing interest in generative AI among tech giants, which has gained prominence recently by producing sophisticated content, such as text and images, in response to human input. Google launched Bard last month to compete with Microsoft-backed OpenAI’s ChatGPT, a chatbot capable of generating convincingly human-like responses.
The Alphabet-owned company has also incorporated generative AI into widely-used applications like Google Workspace, Google Docs, and Gmail. The new technology will be integrated into Performance Max, a program offered by Google since 2020 that uses an algorithm to determine ad placement, budget allocation, and simple ad copy creation.
Why we care. Google’s integration of generative AI into its ad business offers the potential for increased creativity and sophistication in ad campaigns. By utilizing AI-generated content, advertisers can benefit from customized ads that target specific audiences and help meet objectives, such as sales targets. As a result, this technology can lead to improved conversion rates and more effective marketing strategies, giving businesses a competitive edge in the evolving digital advertising landscape.
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