Google’s ‘Marketing Live’ event suggests improving AI position: analysts By Investing.com

Google held its 2024 Marketing Live event on Tuesday, introducing more than 30 new products and new features for advertisers.

The company also showcased detailed examples of how new and expanded AI capabilities can drive performance. Here’s how Wall Street analysts reacted.

Evercore ISI said they think the most important takeaway was from Chief Business Officer Philipp Schindler, who highlighted user behavior learnings from deploying AI Overviews.

They wrote: “We think with these three points, Google is addressing a key point of skepticism around its new Gen AI Search format by showing that Gen AI Search is driving more overall engagement, more effective conversion, and, with richer and more targeted queries, potentially resulting in better monetization.”

Analysts noted, “Marketing Live again showed GOOGL’s AI leadership with 30+ new products across 5 categories (Search, Shopping, YouTube, PMAX, Measurement). Between this and I/O, GOOGL’s use cases are evolving into the GenAI digital assistant we have been waiting for, with more utility for users/advertisers ahead.”

Analysts view the product launches at Google Marketing Live 2024 as continuing to push along the theme of using AI (and the resulting automation) to expand Google’s advertising TAM.

Analysts believe Google’s GenAI strategy is now at a place whereby its core Search experience and monetization tools are better positioned for continued growth. They highlight AI Overviews are now live across the U.S. and that the experience is delivering greater engagement and higher quality, lower funnel, conversions for advertisers.

Analysts acknowledge that while Google’s distribution is likely to change, its deep integration with businesses and users can sustain its ability to offer a better search experience, while AI improves the relevance of results, which likely improves monetization. They maintain a Market Outperform rating and $200 price target on shares of Alphabet (NASDAQ:).”