AI’s new role in marketing outcomes
Artificial Intelligence (AI) is often celebrated as the ultimate solution to advertising efficiency, helping brands plan better, work smarter and save time. It’s the headliner at every industry event and a hot topic in boardrooms. And so far, AI has proven a valuable asset in streamlining the planning process. But the next big question is: Can AI drive measurable impact after the planning phase has passed? And how could you possibly have enough data to measure every touchpoint and control for enough external factors to truly find out?
Quantify AI’s bottom line impact
Google sought to uncover the bottom line impact of their latest AI-powered solutions across YouTube and Search by putting them to the ultimate test: measuring over 50,000 brand campaigns and over 1 million performance campaigns in the U.S. across their AI tools.
AI’s unproven track record
Measuring the performance of AI-powered solutions is a new challenge in the marketing ecosystem. Google needed a measurement solution that could isolate the distinct impact of AI from manual campaigns and also access rich category-level data to effectively capture their wide campaign footprint. In order to prove whether AI-powered solutions moved the needle on return on ad spend (ROAS) and sales effectiveness, they needed a marketing mix modeling (MMM) solution with the ability to answer their research questions robustly.
Connecting the dots on performance
Google’s over 50,000 brand campaigns and over 1 million performance campaigns, controlled for external factors, and used advanced modeling techniques to aggregate digestible and accurate insights. Due to Nielsen’s extensive data categorization and data partnerships, Nielsen was able to provide the deep cuts of data needed for granular and speedy analysis.
Key findings
AI drives more ROAS than manual
Google AI-powered video campaigns on YouTube deliver 17% higher ROAS than manual campaigns.
Synergies between AI campaigns drive effectiveness
Google AI-powered VRC for Efficient Reach + VVC delivers 23% higher sales effectiveness than VRC for Efficient Reach alone.
Demand Gen boosts ROAS and sales effectiveness
Adding Google AI-powered Demand Gen to Search and Performance Max campaigns delivers 10% higher ROAS and 12% higher sales effectiveness than those without Demand Gen.
Results
A recipe for success
The results showed that Google AI-powered advertising solutions consistently outperformed manual campaigns in both ROAS and sales effectiveness. But the real magic happened when brands combined multiple AI ad solutions strategically. This AI mix unlocked the best balance of reach, efficiency and returns.
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AI drives ad outcomes
AI isn’t just a fad or a futuristic planning tool – it’s a performance driver. While there are many use cases for single format campaigns, it’s undeniable that AI-powered campaigns can drive a bottom line impact. However, the real expert should find and harness that perfect blend of AI tools to maximize impact and always keep measuring to uncover the truth in today’s ever-changing AI landscape.
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