From Generative AI to ROI: Smarter Ads Win
Microsoft just released its first generative AI guide for SEM and SEO pros—but with years of PPC experience, here’s my expert take on what matters most for driving results with paid ads.
Welcome to The Paid Media Mix, your go-to source for AI-powered paid media insights. Today, I’m looking at the recent Microsoft's generative AI guide (the first of its kind) with a focus on advertising and what really matters. If you find this interesting, subscribe for more cutting-edge strategies and insights!
If you’re still managing ad campaigns the old way, you’re leaving money on the table. AI is already transforming paid advertising, helping brands create campaigns faster, with smarter personalization and stronger ROI. As AI reshapes the digital landscape, knowing how to apply it effectively is what separates good campaigns from great ones.
Why AI Is Reshaping Paid Ads
👉 Consumers expect personalized and interactive experiences with content.They're finding ads served within these experiences are more relevant. Microsoft reports that AI-driven ads see a 69% increase in click-through rates (CTRs) and a 76% increase in conversions in comparing Search and Copilot ads.
👉 Platform-native AI can assist with many aspects of campaign creation. Today’s platform-native AI enhances every stage of campaign creation, from writing ad copy to optimizing bids and placements. The real advantage is faster insights and smarter decisions that help you outperform competitors.
Now, let’s break down the steps to use AI for personalization and better performance.
Using AI for Personalization and Better Ad Performance
Unlocking AI’s full potential in paid advertising starts with personalization to delivering ad messages that get results. Here are five practical steps to elevate your ad performance using AI:
1️⃣ Refine Your Creative Process: Use generative AI to brainstorm creative concepts, craft personalized ad copy, and design visuals custom to specific audiences. AI allows you to generate multiple variations and test which versions resonate most, driving stronger engagement and conversions
2️⃣ Prompt Like a Pro: Unlock AI’s Full Potential: The secret to high-performing PPC ad copy lies in effective prompts. Use an external AI assistant and this formula to guide AI toward creating personalized, action-driven ads:
Provide Context: Describe the product’s key benefits and target audience.
Set Clear Goals: Specify tone, format, and character limits.
Focus on Performance: Guide AI to write copy that captures attention and drives action.
Ensure Consistency: Reference past successful campaigns or core brand messaging.
Example Prompt: “Write three Google Search ad headlines, each 30 characters or fewer, promoting eco-friendly cleaning products. The target audience is parents looking for safe, sustainable solutions. Use clear, benefit-driven language that highlights convenience, effectiveness, and pet-safe ingredients.”
3️⃣ Leverage Real-Time Insights: Monitor AI-powered performance reports to adjust bids, target audiences, and creative elements in real time. AI tools deliver instant analytics that help you identify opportunities for optimization, ensuring your ads are always performing at their best.
Experiment Prompt: "In this account, show me the results on the percentage of ads served in search vs the audience network and what are the key results?"
4️⃣ Automate Routine Tasks: Free your team from repetitive tasks like writing initial ad copy, compiling reports, and diagnosing performance issues. By automating these processes, your team can focus on strategy and creativity while AI handles the heavy lifting.
5️⃣ Measure What Matters: Track meaningful metrics like conversions and cost-per-acquisition rather than just impressions or clicks. By focusing on outcomes that drive business growth, you’ll create AI-powered campaigns that consistently deliver higher ROI.
Conclusion and Call to Action
AI isn’t a shortcut, it’s your competitive advantage. By combining human creativity with AI-driven insights, you can create campaigns that engage, convert, and consistently deliver stronger ROI. The tools are ready—the question is:
How will you apply AI tools to stay ahead? ➡️
If you found these insights helpful, imagine what we can achieve together. Let’s talk about how to apply these techniques to your campaigns.
👉 Book a paid ads strategy call today.
