Google Ads introduces auto-generated advertisement tool using generative AI

Advertisers and businesses will now be able to auto-generate advertisements on Google Ads platform, said Dan Taylor, vice president of global ads at Google.

Using Large Language Models (LLMs) and generative artificial intelligence (Gen AI), Google Ads will be able to create campaign workflows based on business prompts given by marketers.

"It learns from the advertisers landing pages, queries that are performing well and headlines that they've already approved to create entirely new creatives," he said during his recent India visit.

According to a McKinsey study, marketing and sales have the biggest reported revenue effects of AI.

Taylor spoke about Gen AI tools introduced during Google I/O held on May 10 this year for marketers and advertisers like Performance Max, and how brands like Myntra, Samsung, HDFC, and Tata AIG saw up to 18 per cent higher conversions by adding AI to their marketing mix.

Performance Max combines Google's AI technologies across bidding, budget optimisation, audiences, creatives, attribution, and more, the company said.

The technology behemoth also reiterated its focus on privacy amid rising privacy regulations by countries.

In a survey of 16,500 individuals from 11 Asia-Pacific markets, 8 out of 10 consumers recognised the importance of online privacy and security of their personal information, he said.

"So much so that 70 per cent of those consumers would stop engaging with a brand in response to a violation of their trust around data. So this is a real consumer concern," Taylor said.

Days before the government introduced the Digital Personal Data Protection Bill in the parliament, Google announced enhanced privacy features like Privacy Sandbox for web and Android, as it introduced generative capabilities for its ads business for marketers.

The Sandbox initiative balances people's privacy with business interest, Taylor said.

"We're rethinking Chrome and Android as platforms for privacy while working with the industry to develop internet and app experience with privacy at the core that still deliver great outcomes," he added.

Taylor also said his company was engaging with the EU Commission "constructively" to address their concerns around Google's ads business and avoid conflict of interest between consumers and advertisers.

As Gen AI capabilities are enabled across sectors and impact international discourse, Taylor said Google has been working on AI tools for a decade.

"While the public discourse on AI seems relatively new, we've been innovating on AI and tools that help consumers and businesses for well over a decade."

During the annual Google I/O conference in May, the company introduced AI tools for marketers with a focus on scaling small businesses.

"Indian businesses have been investing to put digital front and centre into their marketing and we're excited about supporting them in leveraging tools like AI to deliver the right outcomes," he said.

With tools like Google products studio, businesses can create customised product images for free, without cost-intensive photoshoots.

He said that AI tools move at the speed of customers, and -- as the internet economy is projected to grow 6 times to USD 1 trillion by the next decade -- businesses are not competing with AI, but with other marketers using AI.

He also said that news publishers are "embracing the opportunity of generative AI" from a content creation and optimisation standpoint.