Businesses are increasingly leveraging Artificial Intelligence (AI) tools during advertising campaigns to boost revenue. A study by Google and BCG found that marketers using AI tools report 60 percent more revenue growth than their peers.
“AI is no longer a futuristic concept—it is the foundation of modern search and advertising,” explained Brendon Kraham, Google’s vice-president of search and commerce, global ads solutions, during a media roundtable.
Kraham highlighted how Google’s AI-powered overviews, driven by Gemini, are delivering richer, more conversational responses, leading to greater user engagement and deeper exploration.
“This shift is reflected in the fact that 15 percent of daily searches on Google are new, indicating a growing demand for complex, nuanced information. AI is supercharging search, and allowing for new ways to search, such as with images and voice,” he noted.
AI is reshaping consumer behaviour and presenting marketers with unprecedented opportunities. “Today, more than 80 percent of advertisers are already using at least one AI-powered search ad product,” he emphasised.
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With over a billion shopping searches happening daily on Google and Gen Z increasingly relying on it for shopping, businesses are turning to AI-powered tools like Performance Max and Demand Gen to reach potential customers.
Nigerian companies are also tapping into AI’s potential. FairMoney, a digital bank, reported a 47 percent increase in installs, a 30 percent rise in loan applications, and a 24 percent boost in loans disbursed using Google App campaigns for installs.
Wakanow, an online travel platform, implemented a three-phase app growth plan using App Campaigns for Installs (ACi) and Firebase to track in-app events. Within two months, the company doubled its booking revenue and saw a tenfold increase in booking volume.
“83 percent of online businesses in Nigeria agree that search engines make it easier for global customers to find them, and 78 percent believe internet tools like Google Search, Gmail, Google Docs, and Google Business Profile have significantly reduced the cost of starting a business,” Google shared in a factsheet.
On average, more Nigerian businesses are reporting that 11 percent – 20 percent of their new customers find them through Google Search, underscoring AI’s growing impact.
According to Shopify, an e-commerce platform for businesses, 95 percent of marketers believe AI streamlines campaign management, helping deliver more personalised customer experiences. “In this new era of advertising, leveraging AI is key for keeping up with the competition,” it noted in a blog post.
“What Google is doing is helping businesses recognise new opportunities, and those using AI tools are reaping the results and leveraging the advancements to drive business value and business growth,” added Kraham.
Despite its many advantages, AI also presents challenges. One concern includes the loss of authenticity. In a report, Kathy Sucich, vice president of marketing at Dimensional Insight, a data analytics company, warned that generative AI can dilute a brand’s unique voice.
“Marketers shouldn’t use the information provided by generative AI as final copy.’ Rather, the information needs to serve as a starting point from which a marketer can add their own unique perspective, nuance and voice,” stated Sucich.