Google Launches New AI-Powered Advertising Tools

    Google Launches New AI-Powered Advertising Tools
    Last updated Jun 15, 2023
    Image credit: Unsplash


    • Alphabet's Google on Wednesday announced the launch of two new advertising tools powered by artificial intelligence (AI) that will automatically find the best ad placements for companies across the web.
    • One of the tools, Demand Gen, allegedly removes the need for advertisers to manually determine where to place ads, instead using its knowledge of users and their behavior to deliver the most impact.
    • Additionally, Google's Video View will allow brands to maximize viewership across several formats within a single campaign, with preliminary testing reportedly finding that brands received 40% more views on average with the tool.
    • On the same day, the company announced new features that use generative AI to help online shoppers by showing clothes on a wide selection of body types in varying angles, and by finding similar clothing pieces across the web.
    • Google has been rapidly developing AI products to compete with Microsoft-backed OpenAI's ChatGPT, and has annonuced a host of generative AI products based off of large language models (LLMs). In May, Google unveiled its PaLM 2 LLM and has said it's working on an AI image generation product.
    • In Q4 of 2022, Google's advertising revenue decreased by 4%, dragging down the total revenue growth for their parent company to 1%. Alphabet's earnings reports show the slippage continuing into 2023, with the company betting big on short-form video advertising.


    Narrative A

    Generative AI advertising is set to become the future of marketing, as AI and machine learning can synthesize massive amounts of information to create the perfect ad campaign and then deliver it to the right audience instantaneously. This technology will change marketing as we know it, and this announcement accelerates the AI advertising arms race.

    Narrative B

    While generative AI could be a boon for advertising, large enterprises such as Google must be wary of the drawbacks of such an approach. AI advertising risks diluting a brand's voice and producing improperly placed or inappropriate advertisements. Big organizations will need stringent review policies to make sure a deluge of AI produced advertisements don't prove more trouble than they're worth.

    Nerd narrative

    There's a 60% chance that Google will integrate Large Language Model responses directly into Search by August 2023, according to the Metaculus prediction community.

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