The Evolution of Google Ads: Changes in 2023-2024

There were 38 product announcements from Google Ads in 2023, plus numerous other changes communicated via email and the ads liaison.

This flux is what makes the current era of digital advertising one of the busiest and most exciting times to be a PPC professional—but also one of the most frustrating, especially if you don’t make an effort to adapt or can’t roll with the punches.

Personally, I’m grateful for the people around me who make this journey fulfilling and possible: my team at JXT Group, our clients, and my friends in the digital agency and advertising communities.

After an eventful but rewarding 2023, we begin 2024 with optimism and caution. Here’s where my mind is.

Memorable moments from 2023

When I look back at the past 12 months, three moments stand out as particularly significant inflection points in the evolution of Google Ads.

1. Acceleration of Performance Max capabilities

The accelerated release of new features for Performance Max was a signal that not only is Google investing heavily in their automated campaign, but that our feedback was being considered. We got capabilities such as asset group-level reporting, page feeds, URL feeds, and brand exclusions. It wasn’t everything we wanted and it wasn’t all perfect, but it was a step in the right direction that I hope Google sustains in 2024.

2. Demand Gen makes its debut

The introduction of Demand Gen campaigns to replace Discovery is significant, especially since Google also added YouTube Shorts to the inventory (something that was not available previously).

While Performance Max pushes heavily towards placements like the Display network, Shorts is a better if more premium option. At the same time, it is more upper-funnel. But it’s interesting and encouraging to see Google enter the demand generation game in a more significant way.

Keep an eye on the continued rollout of Demand Gen in 2024. 

3. Search moves forward

Within the scope of Search campaigns, there have been several changes that bring it closer to matching what Performance Max is capable of. We now have the option to run campaigns with Broad Match only, as well as making better use of Smart Bidding. This bodes well for accounts focused on lead-generation (like SaaS and services).

We also lost access to first click, linear, time decay, and position-based attribution models. Instead, campaigns now default to data-driven attribution so that they align with what Google’s system is trying to achieve with Performance Max, Smart Bidding, and other AI-powered capabilities.

Top 3 predictions for 2024

While there’s still scope for improvement, the relationship between Google and advertisers took a step in the right direction thanks to the improvements to Performance Max in 2023. At the same time, privacy setbacks and the antitrust hearing are making life outside of ads challenging for Google.

Based on these signs, here’s what I expect we’ll see (or begin to see) in 2024.

1. Keywords will (start to) lose match types

Keywords are a relic of the past to some extent. Like Performance Max, search themes will begin to take the place of match types. They won’t be eliminated completely because highly regulated (and lucrative) industries like banking, insurance and pharmaceuticals can’t use this feature—at least not in its current form.

Search campaigns will continue to live to fight another day, but match types will be completely removed. Currently, there’s an option in Search campaigns to enable Broad Match only, where there are no match types inside of a campaign; that will definitely be pushed forward.

Negative keywords likely won’t be phased out as quickly as match types. Match types on negative keywords probably will, but we’ll still be able to remove specific keywords. This will only make negative keywords even more important, both with manual and Smart Bidding.Google believes their technology is becoming smart enough to understand the difference between different keywords. Eventually, I think they will land on something like brand exclusions in Performance Max where you can’t exclude phrases and keywords. Instead you exclude pre-set terms and brands, and then it’s up to Google to figure out what keywords match those.

While it may not roll out fully this year, I think we may see some initial movement towards this inevitable future.

2. The biggest impact of Google’s antitrust trial will be loss of data

The trial is going to have an impact regardless of what happens. The question is: What kind of impact will it have? Financially, there will be a slap on the wrist and maybe some minor regulatory measures. Other than that, the business will keep moving forward.

Look at the transition from Universal Analytics to Google Analytics 4, and the reason why Google pushed that so hard. Pair it with their mandate to delete user data in the European Union on demand, and it’s not hard to predict how this goes.

It’s just not worth it for Google to fight for data it doesn’t need and can’t legally leverage. The cost must be sky-high because that data (all of it) is priceless.

3. Privacy changes are inevitable

I don’t know that any major changes to the ad product will fully occur in 2024. Match types may start getting phased out, but I still think we’re a year or two away from search themes replacing keywords. The matching algorithm is powerful and getting smarter, but it still has a while to go before it hits maturity.

What will happen more completely are changes in the name of privacy and security.

Google has the IP addresses, queries, and private information of millions of people and brands, and it’s all connected.

Imagine somebody searches for a medical query. Google knows what pages they visited, which forms they filled out. That data can help people connect the dots and manipulate the ecosystem. Preventing that is a driving force behind getting rid of search terms and other trackable personal information.

My number one wish from Google this year…

I’m bullish on Google in general and Performance Max in particular, but I hope we get the ability to set different target KPIs at the asset group level. I would love to bid at the asset group level like you can bid at the ad group level in a Search campaign.

Whatever happens this year, it won’t be boring.

I recall several points during 2023 when our industry was full of doom and gloom. But we’re still here, still servicing clients, still growing brands and revenue.

I’ve said this many times but it bears repeating: Our jobs are not being threatened, they’re simply evolving—like the rest of marketing. Emerging technologies will only make you irrelevant if you don’t adapt to them.

Paid media professionals have been here before. We love what we do and we’re good at so much more than managing campaigns. PPC will find a way.

Menachem Ani ()

Online Advertising and eCommerce Expert with over a decade of success developing high-impact marketing strategies for online retailers and lead-generation clients.

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