Marketing
26 May 2023
AI-generated search ads are coming to Google
Conversational tools are set to help create campaigns, and product images.

Photo by Pawel Czerwinski on Unsplash
Conversational tools are set to help create campaigns, and product images.

Do you wish there was a way to take content from a website and automatically turn it into an ad?
It may sound like magic to a marketer, but Google is harnessing generative AI to do just that.
New tools from the search giant announced at Google Marketing Live this week are set to provide conversational experiences for creating campaigns and generating high-quality images. This comes as Google is getting ready to roll out Merchant Center Next, a new platform offering marketers a central place to manage campaigns.
The product launch is one of the more compelling examples we’ve seen of ChatGPT-like tools being put to work for commerce.
Let’s take a closer look:
Generative AI is set to help advertisers create new search campaigns. Here’s how it works, according to Google:
Simply add a preferred landing page from your website and Google AI will summarize the page. Then, it will generate relevant and effective keywords, headlines, descriptions, images and other assets for your campaign. You can review and easily edit these suggestions before deploying. Now, you can chat your way into better performance — ask Google AI for ideas, just like you might ask a colleague.
This feature will leverage automatically created assets, which generate content from landing pages and existing ads. Generative AI will help to adapt search ads to content. For the search “skin care for dry sensitive skin,” Google could create the ad “Soothe Your Dry, Sensitive Skin.”
In Performance Max ads, AI will take content from a website, and generate text, new images and other assets.
Google is rolling out Product Studio, a new tool that helps marketers to create product imagery using generative AI. Located within Merchant Center Next, it’s designed to help bring high-quality images to ads, and not just one. When two or more images are included with ads, Google said there is a 76% improvement in impressions and 32% increase in clicks. But creating these images can be expensive and time-consuming, especially when photoshoots are involved.
With Product Studio, marketers can:
Create custom product scenes that can change based on needs, whether that’s due to seasonal, campaign-based or experimental needs. “For example, a skincare company could highlight a special seasonal version of a product by requesting an image of the product ‘surrounded by peaches, with tropical plants in the background,'" Google writes.
Remove a product background when it proves distracting to opt for a plain white background.
Increase resolution, providing a way to improve quality without taking a new photo.
Within Merchant Center Next, Google is also aiming to make it easier for merchants to set up a product feed. Instead of manually adding all of the elements required for a listing, Merchant Center Next will automatically populate the product feed with elements that can be detected from a brand’s website.
Google will also add all insights reports to the performance tab of Merchant Center Next. That means there will be one place to view the best-sellers, across both Google channels and brick-and-mortar stores.
These features are set to start rolling out as Merchant Center Next is expanded to more businesses in the coming months.
Generative AI won't just reshape how search ads are created. It is also poised to change search itself.
Some of the first signs of the latter are arriving via Search Labs, a program with early experiments that Google is starting to open this week.
"The new generative AI powered Search experience will help you take some of the work out of searching, so you can understand a topic faster, uncover new viewpoints and insights and get things done more easily," Google wrote. "So instead of asking a series of questions and piecing together that information yourself, Search now can do some of that heavy lifting for you."
Google outlined areas that it is testing in three areas, including commerce:
Product discovery while shopping: AI will help to provide details on specific attributes of products, such as “Peel and stick wallpaper for kitchen," or specific settings it can be used, such as “Bluetooth speaker for a pool party." In response to these questions, Google will provide a range of product options. It is also providing space to ask a follow-up question.
Complex topics: AI can help get users up to speed on specific binary choices such as “Learning ukulele vs guitar," or multistep processes like “Benefits of incorporating your business before freelancing.” Typically, these types of searches would need to be broken down into smaller parts.
Quick tips: AI will provide answers to questions that you want to answer for every day life, such as “How to get an old coffee stain out of a wool sweater?” or “How can I renew my passport quickly?”
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.