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Artificial Intelligence (AI) has been forced on pay-per-click (PPC) advertisers but is it for the better or worse when it comes to your business’s return on investment (ROI)?
Pay-per-click advertising is an essential marketing tool that businesses use to drive traffic, boost sales, and grow their brand. With the influx of AI applications in PPC over the past few years, the billion-dollar question on many business owners’ minds is whether AI technology is doing more harm than good to their PPC strategy.
In this blog post, we’ll explore the impact of AI on PPC ROI and determine whether it has improved or worsened business outcomes.
Improved Ad Targeting
One of the most significant benefits of AI technology in PPC advertising is its ability to improve ad targeting. With artificial intelligence, businesses can leverage machine learning algorithms to identify the keywords, demographics, and interests of their target audience.
This ensures that ads are shown only to the people who are more likely to convert, leading to higher-quality clicks and, ultimately, better ROI.
The caveat to this is, AI is only good at identifying that stuff, it is up to the professional to know how to properly utilize that information by setting up negative keywords, excluding areas, and understanding the context that artificial intelligence lacks.
Increased Efficiency
One of the biggest challenges businesses face with PPC advertising is optimizing campaigns effectively and efficiently. With AI, businesses can automate some of the most time-consuming tasks such as ad placement, budget allocation, and bid optimization.
This saves marketers time and money while increasing the accuracy and relevancy of campaigns. A word to the wise, what is best for pay-per-click platforms such as Google Ads and Facebook Meta isn’t always best for you. Force limitations on placement and bidding or you will leave a lot of conversions on the table.
- 5 Google Ad Recommendations NOT In Your Best Interest
- What The Google Antitrust Lawsuit Means For You
- 6 Super Simple Ways To Reduce Wasted Ad Dollars
Reduced Fraud
In the past, click fraud was a significant issue that caused businesses to lose vast amounts of money to bots and click farms that were designed to trick the system. However, with AI-driven fraud detection, businesses can now identify and prevent fraudulent clicks, ensuring that their PPC campaigns run more cost-effectively.
Don’t completely rely on the pay-per-click platforms though to block all of the spam and fraud. After all, they get paid per click. When they can’t use up your entire budget, they find ways to make the click happen.
This is why we use and recommend ClickCease™ who is on your side. They get paid to save you money, and they save you money by blocking scammers and bots from clicking on your Google and Facebook ads. 100% of my clients who use their software love it because it pays for itself and keeps more of your budget working on getting conversions.
Improved Analytics
AI technology in PPC has also greatly improved the way businesses analyze and interpret data. With the incorporation of algorithmic decision-making, businesses can access valuable insights that help them make more informed decisions, such as determining whether certain ads are profitable, identifying trends, finding new target audiences, other opportunities a human could have missed.
Poorly Set-Up AI Can Worsen ROI
While AI technology has a lot of benefits when it comes to PPC advertising, it’s essential to recognize that poorly set-up AI can lead to worsened ROI. If not trained correctly, algorithms can be designed to optimize for the wrong metrics or show ads to the wrong audience, leading to less optimized campaigns that kill your return on investment.
In conclusion, AI has made a positive impact on PPC return on investment by improving ad targeting, increasing efficiency, reducing fraud, and improving analytics. However, businesses must ensure they optimize algorithms to achieve the optimal effect of their campaigns rather than worsen them.
Therefore, companies that desire successful PPC campaigns cannot ignore artificial intelligence as they are essential to making the most out of your pay-per-click advertising budget. By harnessing the power of AI technology, businesses can maximize the potential of their PPC campaigns, improving their ROI, and achieving their desired outcomes.