February 2023 Google Update – AI generated search ad tools for headlines & more

Granular analysis and first look

On February 27th, 2023, Google introduced new tools to enhance the effectiveness of Search ads, focusing on AI-driven creative performance and new customer acquisition. These tools aim to optimize ad relevance and performance, helping businesses connect with potential customers more efficiently.

Why this matters?

• AI-Driven Creativity: Automatically created assets use AI to generate relevant headlines and descriptions, improving ad performance with minimal effort from advertisers.
• Enhanced Ad Strength: The new tools integrate automatically created assets into the Ad Strength rating, ensuring more accurate and effective ads.
• Customer Acquisition: The new customer acquisition goal, powered by Smart Bidding and first-party data, helps businesses target and acquire new customers, driving revenue growth.

Next Steps/Action Items

• Opt into Automatically Created Assets: Enable this feature at the campaign level to enhance your ad creative with AI-generated headlines and descriptions.
• Leverage New Customer Acquisition Goals: Use the new customer acquisition goal in Search campaigns to prioritize and find high-value new customers.
• Monitor Ad Performance: Track the performance of your ads with the updated Ad Strength rating and make adjustments as needed to optimize results.
• Experiment with Bidding Strategies: Combine the new customer acquisition goals with bidding strategies such as Maximize conversion value with target ROAS to increase revenue from new customers.