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Google to Test Ads in Search Results Powered by Bard, Intensifying Competition in Search Ads Market

2 Mins read

In a bid to stay ahead of rival Microsoft in the highly lucrative search ads market, Google has announced plans to experiment with advertising within search results powered by its generative artificial intelligence (AI). This move comes as both tech giants have been integrating generative AI into their search engines, revolutionizing the way users seek information by providing conversational responses and surfacing relevant websites.

According to research firm MAGNA, the search ads market is expected to reach a staggering $286 billion this year. With this new approach, advertisers will have the opportunity to connect with consumers in a more personalized manner through Google’s AI-powered search engine.

For instance, if a user searches for “outdoor activities for kids,” the generative AI could respond with an ad for a specific outdoor toy, accompanied by tips on how to choose the best toys for children. This innovative approach aims to enhance the user experience while opening up new commercial opportunities for businesses.

Jerry Dischler, Vice President and General Manager of Ads at Google, expressed excitement about the new feature, stating, “This is a new, simpler, and helpful way to interact with Google search. It’s going to be a great opportunity to deliver a delightful user experience that will lead to new commercial opportunities in the future.”

Earlier this month, Google unveiled its new search engine version called Search Generative Experience, which will be gradually rolled out to users via a waitlist over the coming weeks. During its annual Google Marketing Live event, the company also introduced a conversational chatbot designed to assist brands in creating effective ads. By inputting their website, advertisers will receive recommendations from the AI chatbot on headlines, keywords, and images to optimize consumer engagement.

Google’s existing tool for generating ads will now incorporate generative AI capabilities, allowing it to create ads based on a user’s query context. For instance, if a user searches for skincare products suitable for dry and sensitive skin, Google could automatically generate an ad with the headline “soothe your dry, sensitive skin” for a relevant skincare brand.

While Google currently dominates the search advertising space, Microsoft has been swiftly emerging as a formidable challenger. Microsoft has already begun testing ads in its AI-powered Bing search engine and has engaged with ad agencies as early as February, indicating its intention to compete head-on with Google.

As the battle for search ad supremacy intensifies, both Google and Microsoft are leveraging generative AI to transform user experiences and revolutionize advertising strategies, promising an exciting future for advertisers and users alike.

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