GML 2024: Overview, trends, and expert analysis

On May 21st, the Google Marketing Live 2024 (#gml2024) conference took place, which I attended.

In this article, I have compiled key trends, changes, numbers, as well as my analysis and opinion on what lies ahead and how to achieve success in this field in the world of AI.

Indeed, the conference slogan, "A new era of AI. A new era of Ads," says it all. In the past 18 months, AI algorithms have become 100 times more powerful. Undoubtedly, we have already stepped into a new era.

There were four Search key trends presented:

1. The "Exactly-What-I-Want" Search
2. Complex Search Made Easy
3. Search Beyond Words
4. Search Beyond Answers

Globally, these trends highlight that 15% of all queries worldwide have remained unique over the past 10 years, with their length, complexity, and format changing. We are transitioning from keyword-based queries like "buy white sneakers" to more complex queries containing intent, such as "what sneakers go best with a white linen shirt on a summer evening". New capabilities of Gemini allow for providing quality answers to such complex questions, including immediately suggesting relevant products based on the intent and the received answer. No longer do you need to browse through dozens of sites to find an answer—AI does it for you.

Visual search is gaining momentum, with 1 in 4 queries using Google Lens having a commercial intent. You walk down the street, see a dress in a shop window, take a photo, and immediately get the option to buy it at the best price, comparing shopping ads. Ads in visual search will take up a larger share. Here, I am curious about how we will analyze "search queries" if the search is done through photos. This question remains open for me.

Many updates were presented, but I suggest we focus on the most interesting and key ones in my opinion.

Ads alongside AI Overview

Search and shopping ads will appear above and below the AI Overview in search results. As I mentioned earlier, they take into account user intent and offer products as solutions. In my view, this will increase the number of queries, especially informational ones, for which your product will be shown as a solution to a problem.

Profit Optimization

This is not a new feature, as many have already been doing this through custom solutions, margin feeds, and tools like ProfitMetrics. However, now it will be a built-in function, allowing you to shift the focus of your bidding strategy between revenue and profit (without negatively impacting learning!). For most businesses, gross profit is more important than revenue, except for large chains that sell some categories at zero margin simply because the market dictates such conditions.

Loyalty Promotions

Have you seen two prices in supermarkets? One for regular customers and another for loyalty program members. This old and effective retail tactic will eventually become available in shopping (member price). I think this will provide a significant boost and impact customer retention, as well as allow for the collection of more first-party data, which we will discuss further.

Creative Control and Optimization

A significant portion of the conference content was dedicated to creative work. Google continues to simplify the process of creating and processing creatives. Take a product from the feed, for instance, a sofa, and add a background of a room, a painting on the wall, etc. These features also allow you to maintain your brand's style, making the ads much more authentic. Now, you can easily create 100 variations of creatives for Demand Gen with your product, each resonating with a specific segment of your target audience based on their interests.

More Data in Performance Max (PMax)

There will be more data available at the asset level about their effectiveness. This is logical given the focus on creativity. It's not just about creating hundreds of variations but also about analyzing them correctly. This will finally shed some light on this area.

Stickers in Shorts Ads and Brand Connect

The vertical format has brought a 40% increase in view-through rates. Essentially, stickers are your products overlaid on top of the video. They are easy to click and purchase.

There is also a new ad format where you partner with creators. It's not entirely clear how the purchasing process will work, but I expect it to be a highly conversion-friendly format since trust in creators is much higher and conversion rates following their recommendations are higher as well.

Overall, it's evident that YouTube Shorts have proven their effectiveness for e-commerce, and Google continues to actively develop this area. I see this as a blue ocean and a great opportunity for brands.

Shopping Ads Getting More Features

3D spin, which will initially appear for footwear, virtual try-on, and other shopping improvements. Today, shopping ads are a key sales source for many brands, and this position will only strengthen. Working with your feed and products is crucial.

Data, Reporting, Measurement

Last on the list but first in importance:

"Good AI requires good data"

The importance of first-party data is at its peak. Collect, protect, and use are the three key principles.

Google Data Manager will become available to everyone, a significant step and support for businesses.

Measurement diagnostics, which you may have already noticed, will further assist you in identifying gaps in data collection. Meridian (Marketing Mix Model) will become available later this year. This is big news for large omnichannel brands and networks, providing a solution to a complex issue that I have personally faced and have not yet found a quality solution for.

The next thing is Generated Reports. Just type "what is the effectiveness of my campaigns on Thursdays" and the AI-based system will generate the report for you. This sounds very cool! No need to think about selecting parameters and compiling reports manually, just ask a specific question (recalling the 4 trends from the beginning of the article).

Other important points:

• The minimum list size for similar audiences is being reduced from 1000 to 100 users, opening up opportunities for small advertisers to take advantage of such targeting.
• Power Pair - Search + PMax. Here, I'm a bit skeptical, especially for new businesses and businesses with limited data and budgets. Standard shopping + branded search, in my opinion, is a more optimal starting strategy, with a subsequent transition to feed-only PMax and the addition of search campaigns as you grow.

Conclusions:

The main idea I want to convey is:

AI is not a marketer

And that's your advantage over AI.

Yes, Google is simplifying life, especially in terms of creative creation, bidding, and data analysis.

However, it still doesn't create the strategy. Only you create the strategy and product. You match it with market demand. Only you can train this AI correctly or incorrectly (server-side tagging, consent mode, conversion tracking, advanced conversions, cart data, customer match lists, etc. All of this is very important.

AI will be a catalyst. It will more quickly destroy bad products with bad marketing and launch super cool brands that approach their digital strategy wisely.

AI creates the misconception that you can launch ads in two clicks, thereby generating more negative experiences and wasted budgets for new advertisers. Launching has become easier, but achieving success and optimization, strategy, has become more complex.

For specialists, key skills include the ability to track and process data (this is the foundation), create strategy and creative, define goals, and improve the product itself (website, offers, CRO, loyalty programs, brand knowledge, etc.).

"Lean into your agencies" - one of the slogans of the conference, and I agree with it.

The new era has already begun, and only you determine whether you will stay behind or seize new opportunities!

Source: Google Marketing Live 2024