Digital marketing is evolving rapidly, driven by increased use of artificial intelligence, automation, and data-led decision-making across major platforms. Recent updates from Google, Meta, and AI-native tools reflect a broader shift away from manual optimisation and towards predictive, machine-led systems.

For businesses operating across B2B and B2C environments, these developments require a renewed strategic assessment, utilising quality data, and the setting of clear performance metrics.

Beyond Google and Meta, AI-native platforms are beginning to introduce new forms of commercial visibility. Sponsored responses, conversational recommendations, and contextual placements within AI tools are emerging as early-stage advertising opportunities.

While still evolving, these formats signal a future where discovery happens within AI-driven interfaces, not just traditional search engines or social feeds. Understanding the continuous evolution of various digital marketing platforms is essential for ensuring marketing activities are not just visible, but targeted and efficient.

Text vs Video Formats

While text ads are still relevant for immediate and cost-effective conversions of searches backed by clear intent, short-form video (TikTok, Reels, YouTube Shorts etc) is now dominating and excels at building brand awareness and engagement.

Videos enable viewers to form an emotional connection through storytelling and boast retention rates 9 to 10 times above that of text. They also come with an increased cost of production which advertisers must weigh up in the context of their strategic goals and potential return.

Companies can use video to tell their brand stories – whether that’s highlighting their history, sharing customer reviews, showcasing products, or offering behind-the-scenes insights.

There is no question about the power of video as it offers a way into the lives of viewers who can empathise and see themselves in the subjects within the stories. Video captures attention on a deep emotional level and creates an immersive experience.

The Shift Toward AI-Led Platforms

Google and Meta are no longer simply advertising platforms. They are increasingly functioning as decision engines that use machine learning to determine:

• • audience preferences and behaviours,
  • targeting methodology,
  • creative delivery, and
  • budget allocation.

Rather than reacting to manual inputs, these platforms now optimise digital marketing activities based on patterns, signals, and predicted outcomes.

This shift reduces hands-on control but increases the importance of strong foundational inputs, including accurate conversion tracking, clear messaging, and well-structured campaigns which are optimised across the range of output locations such as Facebook, Instagram, Google and other top ranking search engines such as YouTube (which is now the second largest search engine in the world).

Recent Updates in Google Advertising

Google continues to prioritise automation across its advertising ecosystem. Smart bidding, broad match, and Performance Max campaigns are now seen as low-value, entry level solutions rather than advanced options. Similarly, manual Cost Per Click (CPC) strategies are not supported by Google and the platform has zero accountability to deliver a lead, often resulting in budgets being exhausted and blackout periods.

In parallel, search results are becoming more visual and summarised, with AI-generated overviews reducing traditional organic and paid click opportunities. This places greater importance on structured content, strong brand signals, and accurate first-party data.

To make the most of Google’s AI tools, advertisers need to spend time getting to know their target market, preferred methods for conversion and the associated value of each conversion to their business (either a specific value or a ranking). This information informs implementation of a ‘Maximise Conversion’ bidding strategy with values attributed to leads based on their quality. This gives Google Ads the accountability to only drive high value conversions and reduces the likelihood of blackout periods.

Meta Advertising and AI-Driven Optimisation

Meta’s advertising platform has undergone similar changes, with increased input from AI to manage audience targeting, creative rotation, and delivery optimisation.

Advertisers are encouraged to provide broader creative inputs and allow the platform to determine which combinations perform best. While this improves efficiency, it also reduces transparency, making performance monitoring and testing frameworks more important than ever.

However, where determining best performing ads once centred around traditional manual A/B testing (e.g. headline or imagery tests), AI advancements and automated tools like Advantage+ campaigns allow Meta’s algorithm to determine the best creative, often making manual split testing unnecessary.

What About ChatGPT?

If we are talking about OpenAI, then we must acknowledge the question on everyone’s lips – “Is ChatGPT offering advertising and how is this going to change things?”

The answer is that ChatGPT is still in the pilot stage of testing ads within the USA, with advertising designed to be integrated within the chat flow, as opposed to traditional banner ads, although still clearly labelled as ‘sponsored’.

OpenAI (creator of ChatGPT) has stated that responses to user questions will not be influenced by advertisers, but rather advertisers will only be shown where the model detects high intent search from the user.

Cost is currently uncertain but is expected to be higher than current placements (per-thousand impressions), based on ChatGPT’s positioning as a ‘premium’ channel that receives high-engagement and intent qualification.

Testing hasn’t yet reached Australian audiences and we expect considerable refinement will take place before a mass rollout.

What Do These Changes Mean?

Automation increases efficiency but heightens competition for attention. The key takeaway from these developments is that clear value propositions and consistent messaging are critical. AI-driven platforms reward clarity, relevance, and strong data signals over short-term tactics.

For organisations operating in an environment of longer decision cycles, digital marketing strategies must focus on education, building trust, and sustained visibility across multiple touchpoints.

KLR Communications works with organisations to interpret platform changes and translate them into practical digital marketing strategies. This includes aligning campaign structure, conversion tracking, content strategy, and reporting frameworks to ensure AI-driven platforms are guided by accurate, business-relevant inputs.

By focusing on strategy, measurement, and continuous optimisation, KLR Communications helps clients maintain control and clarity in increasingly automated environments.

How KLR Communications Can Assist You

As digital marketing platforms continue to evolve, clarity and structure are more important than ever.
Contact Us to understand how recent digital marketing developments affect your organisation and how to adapt your strategy for long-term performance.