Google Showing Ads In AI Chatbots: What Does This Mean For Marketers?

tl;dr

Google is reportedly showing ads in AI chatbots like iASK and Liner through its AdSense network. This update could open up exciting opportunities for advertisers to scale their reach and diversify their channels amid the ongoing AI search shakeup.

The news dropped this week that Google has partnered with AI chatbots iASK and Liner to test ad placements in their conversational search platforms.

We’ve already seen Google testing ads in AI search overviews, plus news that ChatGPT will likely offer advertising by next year. As AI takes the search landscape by storm, it’s no surprise that Google would want to extend its reach into third-party AI-powered search engines.

So, let’s answer a few of the questions you’re likely wondering:

• Is Google currently showing ads in AI chatbots?
• What does this mean for advertisers?
• Is there anything advertisers need to do now to prepare?

Let’s dive in!

Is Google already showing ads in AI chatbots?

According to the latest news, yes, Google has already started testing ads in select AI chatbots. It’s reasonable to assume that, if these tests go well, they will likely try to expand their AI search placements beyond the initial testing partners.

What do Google’s AI chatbot ads mean for advertisers?

Google’s addition of third-party AI search platforms to its AdSense network opens up exciting advertising opportunities for businesses. Check out some of the benefits and potential areas of caution we anticipate:

Potential benefits

Ability to capitalize on the growing AI search trend

Thirteen billion people used AI for search in 2023, a number that’s expected to reach a whopping 90 billion by 2027.

Google adding third-party AI search platforms into their AdSense network means you can tap into this growing trend without needing to adopt an all-new ad platform.

Scaling potential

The additional conversational search placements also empower you to scale your reach. Existing campaigns could benefit from these expanded placements, allowing you to lean even more into what’s already working well.

Channel diversification

AI-powered search is taking the PPC landscape by storm. While traditional search ads likely aren’t going anywhere anytime soon, adopting an omnichannel approach to search advertising could prove a strategic move for many advertisers.

Take this stat as an example: Estimates suggest that organic web traffic has decreased by 15%-25% because of AI-powered search. While that decrease refers to organic search, not paid, I would expect a similar trend to hit the traditional PPC landscape, too.

Potential for improved relevancy

Placing ads within the context of a conversational search, if done strategically, can create opportunities to better match the user’s intent and create a more relevant ad experience. Increased relevancy can lead to a better overall experience for the user.

Areas of caution

While the added placements present exciting opportunities, I’d be remiss not to highlight a couple of areas of concern as well:

Placement quality

Advertisers have historically called out low-quality placements on Google’s third-party networks. While I’m optimistic about the new AI search placements, I wouldn’t write off all concerns about quality. However, I am hopeful Google will strike the right balance between scale and quality.

User experience

Anytime a company integrates ads into its platform, they run the risk of frustrating users. To maintain a positive user experience, the chatbots will need to ensure appropriate placements, targeting, and formatting.

Questions we still have

The introduction of Google Ads into third-party AI chatbots is developing as we speak, and as a result, I’m curious to see how a few key areas for advertisers will shape up:

• How are ads made eligible for these placements? Will these AI chatbots be included in Google’s search partner network? If Google will allow ads to show in AI-powered searches via the search partner network, will this shift support an even bigger push toward broad match keywords?
• How transparent will Google’s reporting be for these AI-powered platforms?  Google is slowly improving transparency for Performance Max campaigns–will they also add an “AI search partner” channel to their reporting or will it be up to advertisers to analyze individual placements?
• Will we get any insights into the searches that triggered our ads? With traditional search, we have the search terms report, but providing the same level of data with conversational AI search could prove difficult, especially when considering user privacy and the variation in the searches.
• What kinds of queries will trigger ads? Would it just be shopping and ecommerce related queries or any query? If any query, would it include any intent or only certain kinds of intent?
• Will we have the ability to add “negative” concepts to prevent ads from appearing for certain queries?
• How will users respond to ads in AI? Will it be convenient, or will it cause a decline in the trust users have in the AI result?

What can you do now to prepare for Google’s AI chatbot ads?

If you haven’t yet considered the impact of AI-powered search on your PPC strategies, now’s the time to start. My top recommendations to ensure you’re ready for this change are:

• Build out more conversational ad messaging: With these placements, your ads have an opportunity to show up in conversational AI-powered searches. Try building out more messaging approaches that will align with this conversational context. To understand what works well, check out your organic AI search rankings using a tool like our OmniSEO™ dashboard.
• Stay updated: Keep an eye on the latest updates from Google, as well as any in-platform reporting you typically track to spot if and when any potential AI chatbot placements begin appearing. 
• Dive into your user insights: As search becomes more contextual and conversational, understanding how your audience thinks will become increasingly vital to creating ad copy that resonates. Analyze sales conversations, survey responses, and reviews to understand how users talk about your products and services and what problems you’re helping them solve.
• Ensure your Google Ads account is set up for success: Now’s also as good a time as any to do some “spring cleaning” on your Google Ads conversion actions and targeting. Check that you’re using enhanced conversions, offline conversions if applicable, and conversion values where necessary. You might also check that your customer lists are uploaded and up-to-date and that your campaigns are leveraging them appropriately, such as choosing to bid only for new customers.

This latest news from Google only cements how rapidly the paid search landscape is changing. But by monitoring the latest news and always being willing to experiment, you can keep your company ahead of the curve.