Artificial Intelligence (AI) has emerged as a key focus for search marketers in 2024, according to the recently released State of PPC Global Report by PPCsurvey.com. The report, which gathered input from over 1,100 PPC specialists worldwide, highlights the increasing reliance on AI and automation in Google Ads. This trend started with the use of broad match keywords and has now extended to automated bidding and creative automation.
Efficient growth is the top priority for 72% of search marketers this year. This indicates a desire to increase spending while maintaining efficiency targets like Return on Ad Spend (ROAS) or Cost Per Acquisition (CPA). To achieve this, practitioners are looking to reduce wasted spend, build safeguards through layers of automation, and optimize performance from outside the ad accounts, such as landing pages.
Advertising budgets are on the rise, with 12 out of 23 campaign types expecting increases, particularly on Google Ads and Meta platforms. Campaigns targeting “ready to buy” prospects at the bottom of the funnel are receiving increased budget allocations. Google’s product feed-based Performance Max campaign is the top choice for increased budget allocation, selected by 63% of experts. The profitability of investing in automated campaigns with high-quality product data feeds is evident, as over half of respondents plan to amplify spending on feed-based Performance Max campaigns in 2024.
Although Performance Max (PMax) campaigns are widely adopted, their application varies greatly. Less than half of respondents utilize a dedicated full-funnel approach, which includes assets necessary for placements on platforms like YouTube. Some advertisers face challenges in providing the required assets. To address this issue, Google is leveraging generative AI and other tools to automatically create assets.
Automated bid strategies have become the go-to for most advertisers, with options like target ROAS (tROAS) and target CPA (tCPA) leading the pack. Manual bidding is still used but takes a backseat. Target impression share bidding is mainly used for brand protection and isn’t commonly used for other strategies.
Exact match remains popular among advertisers, while the new Demand Gen feature hasn’t gained much traction. Most advertisers benefit from exact match, and only a small portion requires expansion beyond Google Search. Performance Max with feed is now used more than Standard shopping, but Standard shopping still has its fans and uses.
Managing campaigns has become harder for nearly half of PPC specialists over the past two years. The loss of insights and data due to automated campaigns like Performance Max is the main reason cited by 49% of practitioners. Increased competition, rising cost-per-click (CPC), and changes in tracking, privacy, and attribution are also significant challenges.
Trust in ad platforms has declined over the past year, with Google, Twitter, and Meta experiencing the most significant declines. Challenges faced by these platforms include prioritizing automation over user control, reputation damage, unwanted content, and overall unreliability.
In terms of ad platform popularity, global advertising is expected to grow by 8.2% in 2024, with more than 50% of global advertising spend going to major tech firms like Alphabet (Google, YouTube), Meta (Facebook, Instagram), Amazon, Alibaba, and Bytedance (TikTok, Douyin).
Staying updated on trends within the PPC industry is crucial for making informed decisions about ad placement, ad spend, campaign types, and bid strategies. The most successful digital marketers will be those who successfully merge machine capabilities with human oversight, according to Frederick Vallaeys, co-founder & CEO at Optmyzr.
In conclusion, the State of PPC Global Report 2024 highlights the growing importance of AI and automation in search marketing. Efficiency and growth are top priorities for search marketers, leading to increased advertising budgets. While challenges exist in managing campaigns and trust in ad platforms has declined, staying informed about industry trends is essential for success in the PPC landscape.
