As digital media has grown in popularity, pay-per-click (PPC) auctions have become increasingly competitive. However, artificial intelligence (AI) could provide a solution for this highly competitive field by directing marketers towards the most efficient PPC spend.
We explore five ways that AI could help in the realm of PPC…
Brand Name Search
Many brands are unsure as to whether they should bid on their own brand terms. Some do in order to ensure maximum brand protection despite the cost per click and resultant ROI, however this doesn’t work for challenger brands that are in competitive markets.
AI could automatically and optimally ensure an efficient use of the budget when set against ROI targets, and works within set parameters.
Competitor Brand Searches
The same is true when bidding on your competitor’s brand terms, as the AI can be set parameters and rules for working out when it is advantageous to do so.
For those brands whose performance outweighs all other considerations, the AI can be given very relaxed parameters, or can be given free rein to find opportunities and to outbid the competition.
The AI can evaluate endless variants in real time, adjusting the strategy accordingly, which is something no human-run team could complete with.
AI can handle the complexities of running PPC campaigns for businesses with digital and physical stores in several locations. AI instantaneously understands and adjusts for the capacity, opening times, local competition, local demand spikes and local search behaviour which means that it is creating nuanced campaigns for each store in real time.
A human-run team may have to keep the number of keywords and phrases to a small and manageable number. AI will also discover and test new terms that may perform well for the brand, and it moves consistently with trends, consumers and competitor activity.
Build & Learn
AI is built to learn and develop constantly. It is trained on the success criteria and outcomes that the brand is looking to achieve, and from there it will learn what works and doesn’t work.
By pursuing an infinite number of strategies in order to achieve its objective, the AI optimises according to the cost-per-lead, cost-per-acquisition, margin, ROI, customer value, stock levels and many other factors – and it can adjust the number of bids in order to chase opportunities for growth and efficiency.