'CPC pain is real': One year on, Google's AI Max has pushed up search budgets - and costs
Briefly

'CPC pain is real': One year on, Google's AI Max has pushed up search budgets - and costs
"AI Max generates target keywords and queries using a brand's chosen landing page, creative and keywords as inputs, leading to an evolution away from keyword-based auctions toward a market anchored around intent."
"Almost all of our clients are using AI Max. We found it to be an incredibly effective way to run our search campaigns."
"AI Max is also opening up query space our clients weren't previously bidding on. For the clients leaning into that as a growth lever, we're seeing roughly 7% to 10% year-on-year spend growth tied to it."
Since the launch of AI Max for Search, brands have increased their search budgets, with some experiencing cost-per-click increases of up to 15%. AI Max generates target keywords based on a brand's landing page and creative inputs, shifting the focus from keyword-based auctions to intent-based marketing. Advertisers report an average conversion increase of 7%. Performance marketers have widely adopted AI Max, finding it effective for targeting long-tail queries and adapting to changing user behavior, contributing to a 7% to 10% year-on-year growth in search spending for some clients.
Read at Digiday
Unable to calculate read time
[
|
]