Digital ad tech is changing - what you need to know to have successful campaigns in 2024

Digital ads are changing.

Gone are the days of simple, cookie-based targeting methods. We are now entering an era where Google, Meta, and other digital giants leverage customer signals combined with first-party data to find the right customers. This shift emphasises the importance of creative content more than ever before.

Historically, digital ads relied heavily on cookies to track user behaviour across the web, allowing businesses to target potential customers based on their online activities. While effective, this method raised privacy concerns and depended on third-party data, which is increasingly restricted.

Today, we're moving towards a more sophisticated approach. Companies like Google use AI to analyse customer signals - actions users take that indicate interest or intent - combined with the data you collect directly from your customers (first-party data). This combination allows for more accurate targeting without infringing on user privacy.

In this new landscape, the creative aspect of your ads takes centre stage. Since AI algorithms can now better understand the context and effectiveness of ad creatives, having compelling and relevant content is key to capturing the attention of your target audience. This means investing in high-quality visuals, engaging copy, and interactive elements that resonate with your potential customers.

The Google example

Google is at the forefront of integrating AI into its advertising technologies, making significant strides in reshaping how businesses connect with customers. Here are some specific examples of what Google is doing with its ad tech:

Performance Max Campaigns

Google introduced Performance Max campaigns as a way to utilise AI in optimising ad performance across all of Google's advertising channels, including Search, YouTube, Gmail, and the Display Network. This type of campaign allows advertisers to input their goals, target audience, and creative assets. Then AI determines the most effective combinations and placements for those assets. The goal is to maximise conversion value, such as sales or leads, by automatically finding and targeting the most relevant audiences across Google's entire ecosystem.

Generative AI in the Creative Process

Google is leveraging generative AI to assist advertisers in creating more effective and engaging ad creatives. For example, with features like "Auto-Generated Videos" in Performance Max campaigns, Google's AI can automatically create video content from existing assets like images and text provided by the advertiser. This saves time and optimises creatives for performance across different platforms and formats.

Immersive Visual and Multi-Search Experiences

Recognising the importance of visual search, Google has been developing features allowing users to search using images or combining images and text. This is particularly relevant for e-commerce, where shoppers can take photos of an item and find similar products online. Google's AI analyses the visual information and matches it with relevant product listings, enhancing the shopping experience and providing advertisers new opportunities to connect with customers.

AI-Powered Predictions in Google Maps

Google Maps is another area where AI enhances user experiences and advertising opportunities. By using AI to analyse traffic patterns, Maps can suggest eco-friendly routes or predict busy times for businesses. Advertisers can leverage these insights to target customers more effectively by promoting special offers during predicted busy hours.

Enhanced Conversions

Google's Enhanced Conversions feature uses AI to improve the accuracy of conversion tracking by using first-party data in a privacy-safe way. This helps advertisers better understand the impact of their ads and optimise their campaigns for higher ROI. By securely sharing hashed first-party conversion data with Google, advertisers can get a more complete picture of how users interact with their ads across various devices and platforms.

Insights and Optimisation

Google Ads now offers advanced insights and optimisation suggestions powered by AI. These insights can identify trends, suggest new target audiences, and recommend adjustments to bids and budgets. For example, the "Insights" tab in Google Ads uses machine learning to highlight potential growth opportunities, such as emerging search trends that advertisers can capitalise on.

Future Developments

Google continues to invest in AI research and development, promising even more advanced features in the future. This includes improved natural language processing for better ad copy generation, enhanced image and video recognition for more intuitive visual searches, and predictive analytics for forecasting market trends and consumer behaviour.

Preparing for the Future

Staying adaptable and informed about technological advancements is essential as we look ahead. AI is changing how we target ads and how we create them. 

Checklist for Modern Digital Advertising in 2024

1. Understand the Shift from Third-Party to First-Party Data

Old Way: Relying heavily on third-party cookies for tracking and targeting users based on their browsing history.

New Way: Utilising first-party data and information collected directly from your customers (e.g., through your website or CRM system).

What you need to do: Collect first-party data through customer interactions, sign-ups, and engagements. Ensure your website and digital platforms are optimised for data collection. Regularly update and maintain your customer database.

2. Comply with Data Privacy Laws

Old Way: Less emphasis on user consent and data privacy.

New Way: Strict adherence to data privacy laws like GDPR and CCPA.

What you need to do: Stay informed about the latest data privacy regulations. Implement clear consent mechanisms on your website. Regularly audit your data practices for compliance.

3. Optimise Creative Content for Your Campaigns

Old Way: Generic ad creatives used across various platforms.

New Way: Tailored and engaging creatives designed for specific platforms and audiences.

What you need to do: Develop a deep understanding of your target audience. Create high-quality, engaging, and platform-specific content. Test different creative formats (videos, images, text) to see what resonates best with your audience.

4. Leverage Limited Creative Resources Effectively

Old Way: Limited variation in ad creatives due to resource constraints.

New Way: Smartly repurposing and adapting existing creatives.

What you need to do: Use tools like Google’s “Auto-Generated Videos” to create variations from existing assets. Adapt one creative across different formats and platforms. Regularly update and refresh creatives to maintain audience interest.

5. Measure Campaign Effectiveness with New Tools

Old Way: Relying mainly on cookies for tracking ad performance.

New Way: Using AI-powered tools and first-party data for deeper insights.

What you need to do: Utilise Google’s Performance Max Campaigns to measure and optimise ad performance. Employ Google Analytics to track website interactions and conversions. Regularly review campaign data to adjust strategies for better ROI.

6. Embrace AI and technological advancements.

Old Way: Manual analysis and campaign adjustments.

New Way: Leveraging AI for predictive analytics and automated optimisations.

What you need to do: Stay informed about new AI tools and features in digital advertising. Experiment with AI-powered platforms to find what works best for your business. Continuously learn and adapt to new technologies.

7. Partner with the Right Digital Agencies

Old Way: Working with agencies focused on traditional advertising methods.

New Way: Collaborating with agencies skilled in AI-driven and digital strategies.

What you need to do: Choose partners with expertise in modern digital advertising tools and strategies. Ensure your agency understands your business goals and target audience. Regularly communicate and review performance with your agency for continuous improvement.

The landscape is transforming dramatically. The traditional reliance on third-party cookies and broad-stroke targeting gives way to a more sophisticated approach driven by first-party data, AI, and a deep emphasis on creative content. Google's innovative tools like Performance Max Campaigns, generative AI for creative optimisation, and immersive search experiences demonstrate this shift, offering new opportunities for businesses to connect with their audiences in more meaningful and effective ways.

Business owners must embrace these changes, adopting strategies that leverage their own customer data, comply with evolving privacy laws, and use good creative to connect with their target audience. 

Bring on 2024!

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