Google has been pitching advertisers on a new AI-powered search tool, called Search Bidding Exploration, which aims to find new pockets of valuable traffic. It does this by identifying lower-traffic queries within search that actually drive conversions, according to documents seen by ADWEEK.
Low-traffic queries are when someone types in a less popular search query. Brands still want to show up here because they can find new audiences on these searches.
The product was pitched in the third quarter of this year, according to the documents, and has not been publicly announced.
A Google spokesperson declined to comment.
Search remains Google’s biggest cash cow, making up 75% of revenue last quarter. But it’s also facing pressure: Recent antitrust rulings could lead to structural or behavioral changes to Google’s search units, and the tech giant’s share of the search advertising market in the U.S. is projected to dip below 50% by 2025 for the first time in a decade, per Emarketer. Against this backdrop, Google, which regularly shares product ideas with buyers, is continuing to innovate to keep corporate ad budgets flowing.
The tech lives within Google’s Smart Bidding suite of products which use AI to optimize search ads toward conversions. Without Search Bidding Exploration, Smart Bidding typically bids on search queries that historically would have performed well for the brand, but the tech has a harder time predicting the efficacy of lower-traffic queries.
Advertisers using Search Bidding Exploration should lead to around a 10% decline in return on ad spend, but the tool will ideally lead to more clicks and conversions, according to the documents reviewed by ADWEEK. The tool is only available for campaigns without budget constraints.
An ad buyer speaking anonymously said this tool addresses a longstanding concern that AI-driven buying tools, such as Google’s Performance Max or Meta’s Advantage+, pick the low-hanging fruit audiences that would have converted anyway. Since there is a relative lack of transparency, buyers aren’t able to diagnose whether AI is driving true value.
“Part of the issue with any of the AI-driven products is they optimize in the margins, but you’re optimizing against the same pools,” the buyer said. “You’ll hit a ceiling.”