Digital Marketing in an AI World

1. AI's Impact: Automation, Efficiency, and the Human Role

For search-engine marketers (SEM), advances in artificial intelligence (AI) and machine learning (ML) have led to a real possibility that the primary roles humans play today—ad creative, account structure, targeting, landing pages, bidding, keyword creation—will be automated over the next few years.

Automation and Efficiency. AI and machine learning are transforming digital marketing by automating tasks like ad creation, targeting, and bidding, leading to increased efficiency and potentially lower costs. This shift requires SEM professionals to adapt and redefine their roles.

Human Expertise Still Needed. Despite automation, human expertise remains crucial for tasks that require creativity, intuition, and strategic thinking. Humans are needed to create and improve algorithms, ensure quality assurance, and infer opportunities where computers can't.

The Future of SEM. The future of SEM involves a collaborative approach where humans and machines work together to achieve optimal results. While automation reduces the need for people in certain roles, it also creates new opportunities for SEM professionals to focus on higher-level strategic and creative tasks.

2. Machine Learning: The Engine Behind AI in PPC

Machine learning is great at figuring out correlations within masses of data: indeed, it’s a lot better at finding patterns in large data sets than we humans are.

Moore's Law and AI. The current machine learning explosion is a result of Moore's Law, which states that computing power doubles roughly every eighteen months. This exponential growth has enabled significant advancements in AI and machine learning, making them increasingly viable for PPC advertising.

Machine Learning Models. Machine learning models are trained using historical data to identify patterns and correlations that can be used to make predictions. In PPC, these models are used to optimize bids, target ads, and improve ad relevance.

Training and Prediction. The machine learning process involves training the system with structured and labeled data, checking its output against actual results, and adjusting the model until it can make accurate predictions. Once trained, the system can use real-time data to generate predictions and improve its performance through a feedback loop.

3. Human Strengths: Creativity, Intuition, and Strategic Thinking

Marketing, however, remains a fundamentally human field: communicating with other people, telling them what you can offer, and inspiring them to act.

Creative Messaging. Humans excel at crafting compelling creative messaging that resonates with target audiences. While machines can analyze data and identify patterns, they lack the emotional intelligence and creative intuition to develop truly engaging and persuasive ad copy.

Intuitive Knowledge. Human intuition, based on experience and local knowledge, can often outperform machine learning models. For example, a PPC professional with local knowledge of traffic patterns can make better decisions about bid adjustments than a GPS system.

Strategic Thinking. Humans are better at setting goals, defining targets, and measuring results. They can have focused business conversations with stakeholders and translate complex business objectives into clear, actionable strategies for PPC campaigns.

4. Machine Strengths: Data Processing, Bidding, and Budgeting

With the “Smart” initiative, Google is trying to make things easier for these businesses.

Automated Bidding. Machines excel at bid management, adjusting bids in real-time based on a multitude of factors to achieve specific goals, such as maximizing conversions or return on ad spend (ROAS). This is a complex mathematical task that humans cannot perform manually with the same speed and accuracy.

Budget Automation. Machines can also automate budget allocation, distributing funds across different channels and campaigns to optimize performance. This involves analyzing vast amounts of data and making adjustments based on real-time results.

Scalability and Complexity. Machines are better at handling scalability and complexity, managing thousands of bid permutations and customer segments. They can process vast amounts of data and identify patterns that humans would miss.

5. The Doctor Role: Empathy, Diagnosis, and Personalized Solutions

You’ll also have a job, because machines plus humans can outperform machines acting alone.

Understanding Clients. The "doctor" role involves understanding clients' needs, diagnosing problems, and recommending personalized solutions. This requires empathy, communication skills, and the ability to connect the dots and see the whole picture.

Delivering Bad News. Like a doctor, PPC professionals must sometimes deliver bad news, explaining why certain goals are unattainable and recommending alternative strategies. This requires honesty, transparency, and the ability to manage expectations.

Personalized Treatment. The "doctor" role involves tailoring solutions to the specific needs of each client, taking into account their unique circumstances, goals, and constraints. This requires a deep understanding of the client's business and the ability to adapt strategies as needed.

6. The Pilot Role: Monitoring, Intervention, and Competitive Advantage

The best results happen when machines and humans work together.

Staying on Top of Things. The "pilot" role involves monitoring PPC campaigns, identifying anomalies, and intervening when necessary. This requires vigilance, attention to detail, and the ability to react quickly to changing circumstances.

Exploiting Opportunities. The "pilot" role also involves identifying and exploiting competitive advantages. This requires strategic thinking, creativity, and the ability to capitalize on competitors' mistakes.

Defensive Maneuvers. The "pilot" role includes defensive maneuvers, such as avoiding vanity bidding and protecting against competitors' tactics. This requires a deep understanding of the PPC landscape and the ability to anticipate and respond to threats.

7. The Teacher Role: Training, Customization, and Model Refinement

One of Google’s key tenets is transparency and information-sharing.

Training the System. The "teacher" role involves training machine learning systems, providing them with the data and rules they need to make accurate predictions. This requires a deep understanding of the underlying algorithms and the ability to identify and correct errors.

Customizing Models. The "teacher" role also involves customizing machine learning models to meet the specific needs of each client. This requires the ability to identify relevant factors, adjust parameters, and refine the model over time.

Model Refinement. The "teacher" role includes refining machine learning models, ensuring they are accurate, reliable, and effective. This requires continuous monitoring, testing, and iteration.

8. Value Proposition: Beyond Automation, Towards Strategic Partnership

The truth is there are many ways to futureproof your agency, and futureproofing will be a main focus of the chapters that follow.

Beyond Automation. The value proposition of a PPC agency must go beyond automation. It must focus on the strategic partnership between the agency and the client, emphasizing the agency's ability to understand the client's business, set goals, and develop customized strategies.

Unique Business Data. The value proposition should highlight the agency's ability to leverage the client's unique business data to improve PPC results. This involves integrating data from various sources, such as CRM systems, sales data, and customer feedback, to create a more complete picture of the customer journey.

Concrete Examples. The value proposition should be supported by concrete examples of how the agency has helped other clients achieve their goals. This involves showcasing case studies, testimonials, and other evidence of the agency's expertise and effectiveness.

9. Fundamentals Matter: Expertise, Targeting, and Creative Messaging

In the final analysis, it is no longer just about pitching your product.

Expertise and Knowledge. Despite advances in automation, expertise and knowledge of PPC fundamentals remain crucial. PPC professionals must understand how the system works, how to set up campaigns, and how to optimize performance.

Granular Targeting. With increased targeting capabilities, PPC professionals must be able to develop highly specific and creative messaging that resonates with different customer segments. This requires a deep understanding of customer demographics, psychographics, and behavior.

Creative Messaging. The creative aspect of PPC, such as writing ad text, remains essential. Humans are still better than machines at crafting compelling and persuasive ad copy that connects with target audiences.

10. The Sixth "P": Psychology and Customer Understanding

The basic premise of search and, in fact, all marketing, is to connect a business with a consumer who has a specific problem the business is able to solve.

Customer Understanding. Understanding customer psychology is crucial for effective PPC advertising. PPC professionals must be able to identify the values, desires, and needs of their target audiences and craft messaging that resonates with them.

Life-Event Targeting. Life-event targeting, such as targeting people who are about to get married or just graduated from college, can be highly effective. However, it requires a deep understanding of cultural nuances and the ability to adapt messaging to different audiences.

Pattern Recognition. Machine learning can be used to identify patterns in customer behavior and create highly targeted audiences. PPC professionals must be able to leverage these insights to develop more effective campaigns.

11. Transparency and Trust: Building Confidence in the AI Era

Most people come to the right conclusions if you give them the right information.

Transparency is Key. In the age of AI, transparency is more important than ever. PPC professionals must be able to explain how machine learning systems work, what data they are using, and how they are making decisions.

Building Confidence. Building confidence in AI systems is essential. PPC professionals must be able to demonstrate the value of these systems and show how they are helping clients achieve their goals.

Human Oversight. Human oversight is crucial for ensuring that AI systems are used ethically and effectively. PPC professionals must be able to monitor these systems, identify potential problems, and intervene when necessary.

Last updated: February 4, 2025