In the 12 months since Google debuted AI Max for Search, brands have increased their search budgets and seen cost-per-clicks (CPCs) rise, while compounding search’s transition into a media channel ruled by automation.
For some clients, search costs increased by as much as 15% in the last year, according to four media buyers who spoke with Digiday.
Unlike traditional methods of targeting search campaigns, AI Max generates target keywords and queries using a brand’s chosen landing page, creative and keywords as inputs. The result is an evolution away from keyword-based auctions, toward a market anchored around intent. Google claims that this technique enables advertisers to catch users they’d otherwise miss, leading to an average increase in conversions of 7%. The product was introduced May 6 last year and left beta status last week.
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