```html
2024 is just around the corner, and that means you can expect the most important trends and developments from our SEA team again this year. In 2023, we embraced Performance Max and broad keywords more, became best friends with ChatGPT, and launched two new campaign types: Demand Gen and Video views. Are you curious about what 2024 has in store? We list the most important developments for you:
- AI Chatbots change search behavior and the search results page
- Third-party cookies are going away
- AI creates automatically generated items
- Demand Gen as a key pillar in the upper funnel strategy
- The disappearance of Shopping-only Performance Max campaigns
- The increasing importance of videos
AI Chatbots change search behavior and the search results page
Chatbots became extremely popular in 2023. We not only use chatbots in our SEA strategy. Consumers are also increasingly using chatbots to conduct research or find solutions. Consumers are increasingly using chatbots as an orientation platform instead of Google. As a result, search behavior in Google may change, and people are increasingly searching directly for the product, service, or brand. This means that the type of searches is mainly in the do-phase, and competition here is often higher. It is therefore important to adjust your SEA strategy accordingly.
Bing is already responding to this change in search behavior. They also show a chatbot within the search result that answers your question.
Additionally, Microsoft also launched ads that help customers find the best deals for products and services. These Microsoft “Compare & Decide” ads are designed to facilitate the comparison process. For marketers, this means it is essential to adapt to these changes in search behavior and to respond to them within campaigns. This includes incorporating search terms in the orientation phase within your keywords and feed.
In May 2023, Google also took this step with the beta version of Search Generative AI. As a result, the search result changes, and the chatbot is displayed first, followed by the ads. It is expected that Google will also incorporate ads into the Generative AI block, provided the beta is actually implemented.
Third-party cookies are going away
The era without cookies is almost upon us. After Microsoft Edge, Firefox, and Safari, Google Chrome is now also phasing out third-party cookies. For 1% of Chrome browsers, this will take place in January 2024. This will gradually increase and is expected to disappear completely by the end of 2024. It is therefore increasingly important to invest in first-party data. One of the best ways to collect data is through server-side tagging. Unlike client-side tagging, all conversion data is collected on your own server and sent to a tracking platform from there.
With the disappearance of third-party cookies, the use of enhanced conversions is relevant to improve the accuracy of conversion measurements within Google Ads. By using enhanced conversions, you can benefit from encrypted customer data in your campaigns without relying on third-party cookie data. This allows you to target the right audiences more effectively and optimize campaigns more efficiently. However, it is essential to know that enhanced conversions only apply to conversions for which customer data is necessary, such as subscriptions, sign-ups, and purchases.
Another important pillar in conversion tracking is consent mode. Even when using server-side tagging, a cookie banner remains mandatory. How the data is stored depends on the accepted cookies and how an organization handles cookie preferences. Whether this data is then correctly passed on to the relevant channel is currently a challenge that many organizations face or for which no clear setup has been made yet. Consent Mode receives users' consent choices via the cookie banner and dynamically adjusts the behavior of Analytics, Ads, and third-party tags that create or read cookies. If users reject cookies, no cookies are stored, but pings are sent to Google instead. Based on these pings, data gaps in Google Ads are then filled via conversion modeling. Consent mode thus applies optimization strategies to recover conversions that may have been lost due to the use of cookies.
AI creates automatically generated items
Google is rolling out a feature that allows ads to be created even faster and more creatively, the conversational AI Chat. This chat helps you generate keywords, headlines, descriptions, and images. With the help of AI, Google creates everything you need based on the URL you provide. You still have control over the items, as you can adjust the items or ask the chat to create new variants.
Not only textual content can be created by AI. The Google Product Studio will also be rolled out. With this tool, you can edit, enhance, and sharpen product images using AI. You can create dynamic backgrounds, remove unattractive backgrounds, and sharpen low-resolution images.
Demand Gen as a key pillar in the upper funnel strategy
In late summer 2023, Google announced that existing Discovery campaigns would automatically be converted to Demand Gen campaigns. Demand Gen is an AI-driven campaign type developed to foster creativity and stimulate demand for products or services among potential consumers. Unlike traditional ads, which are generally often aimed at direct sales (think of Shopping campaigns, for example), Demand Gen campaigns focus on creating interest, awareness, and engagement with the brand. This campaign is designed to guide potential customers through the marketing funnel and in this way bind customers to the brand. This influences consumers in the awareness and consideration phase to create consistent demand and thus stimulate sales and growth.
The Demand Gen campaign uses AI to reach, stimulate, and activate your audience with your best-performing images and videos. Videos make the big difference with the predecessor of Demand Gen. These best-performing images and videos are displayed within the following networks:
- YouTube InStream
- YouTube in-feed
- YouTube Shorts
- Discovery
- Gmail
These networks collectively reach more than 3 billion users monthly.
By deploying a Demand Gen campaign, you create more touchpoints within your customer journey with your target audience, allowing you to reach your audience earlier in the customer journey. An important one to remember for your upper funnel strategy.
The ongoing developments within Performance Max campaigns
Over the past year, we have fully embraced Performance Max campaigns, and the Performance Max campaigns have been fully integrated into the Google Ads strategy. As a result, we see that developments within Performance Max are rapidly following one another, and new functionalities are being introduced. For example, several functionalities have already been added within the Performance Max campaigns over the past year. These include, for example:
- Experiments with Performance Max
- New customer acquisition
- Data exclusions
- Brand exclusions
However, Performance Max campaigns will continue to develop in 2024, and the following developments are planned:
- The disappearance of Feed-only Performance Max campaigns
Where it was still possible this year to set up Feed Only campaigns, this option will disappear in 2024. This means that it will only be possible to set up Performance Max campaigns including content, headlines, and descriptions in the item groups. As a result, the possibility to advertise only in shopping will disappear within Performance Max campaigns, and your campaign will logically be displayed in different networks. Our advice is therefore to always experiment between Performance Max and regular shopping. Performance Max with items can lead to an uplift in conversions.
- Performance Max and insights
Due to machine learning and automation, we have less and less insight and control, but more and more insights are becoming available within the Performance Max campaigns. By using various smart scripts, you can already gain insights, such as:
- Performance distribution per channel
- Good and poorly performing search terms
But also insights within your Performance Max campaign such as:
- Insights into Performance at the item group level
- Insights into Performance at the product, brand name, and product category level
Now that we are able to gain more and more insights, it is also important to analyze and use them. For example, add well-performing search terms from your Performance Max campaign to your search campaigns. This way, you have more control, and your Performance Max campaign can search for other keywords that may also convert.
Due to the changes and developments that continue to follow one another rapidly, it is also crucial to stay informed and respond to them.
The increasing importance of videos
Google and Microsoft recognize the fact that video ads are becoming increasingly important, and they are proactively acting on this. Both Google and Microsoft are busy optimizing current video campaigns and launching new ones. Google did this last year, among other things, by introducing Video View campaigns aimed at maximizing the number of video views. Additionally, Microsoft has announced that they will launch Video and Connected ads, distinguishing between:
- Connected TV ads: Video ads that cannot be skipped when your audience streams programs or movies on TV.
- Online Video Ads: Video ads that are shown when your audience watches videos on desktop, phone, or tablet.
Additionally, Google has introduced starting with new multi-format ads for video reach campaigns. These ensure greater reach on YouTube with Instream, In-feed, and Shorts ads. The new multi-format ad options in Google Ads give advertisers the opportunity to add In-feed and Shorts ads to Video Reach campaigns.
With the latest update, the video reach campaign offers marketers the flexibility to choose from bumper or skippable InStream ads, in-feed ads, and Shorts ads to maximize their visibility.
Ensure that when you deploy video ads, you also provide good content that resonates with your audience and engages your audience. Content = key!
The coming year, we can expect a lot of developments and updates in the SEA field again. Do you want to know more about all developments, updates, and possibilities within Google Ads for 2024, or do you have another online marketing question? Feel free to contact us.
```
