In a strategic move to enhance its B2B marketing approach, Google is reorganising its sales teams to emphasise an AI-driven advertising product. This comes as an effort to cater to a wider array of advertisers, from smaller businesses to larger corporations.
Insider sources have revealed that Google is realigning its sales staff who previously catered to larger corporations. The repositioning involves moving these staff to teams focusing on smaller advertisers. These smaller advertisers traditionally interact with the Google Customer Solutions (GCS) team and have a spending range of $250,000 to $2 million per quarter. In contrast, larger corporations usually allocate between $4 million to $5 million quarterly, liaising with Google’s Large Customer Sales (LCS) team.
This restructuring stems from the observation that larger advertisers no longer require the extensive resources from Google that were previously indispensable. Many of these advertisers now possess internal teams specialising in Google products or collaborate with agency experts for tailored services.
Emphasis on Automation and AI
One of Google’s current strategic drives is centred around the automation of its customer services, leveraging technologies like artificial intelligence. This pivot comes in the wake of a significant workforce reduction earlier in the year, wherein Google laid off 12,000 employees. Although no official announcement regarding sales team restructuring has been made, the recent moves resonate with this overarching trend.
The changes in Google’s internal structure coincide with a slowdown in its advertising revenue growth. Some industry experts believe this realignment is an endeavour to cater more efficiently to rapidly evolving market segments. Despite the deceleration in growth compared to two years ago, certain sectors within Google are still experiencing positive traction.
The Rise of Performance Max
A notable product gaining momentum is Performance Max. This tool allows advertisers to harness Google’s AI to determine the best allocation of their funds across various Google platforms, including search, YouTube, and the Google display ad network. Since its launch in 2020, Performance Max has been a focal point for Google.
According to insider information, Performance Max is a strategy to garner incremental revenue. There has been a considerable internal push to promote it, especially among small to mid-sized advertisers. Google’s data indicates that advertisers typically attain superior outcomes using the Performance Max product.
While Google’s sales personnel have been actively promoting Performance Max to mid-tier advertisers, the reception has been mixed. Several agency executives have reported a noticeable push for this product. Nevertheless, there’s a degree of scepticism regarding Google’s sales tactics surrounding Performance Max. Some argue that while automation promises to address challenges, it falls short in providing agencies with a comprehensive understanding of how to integrate Performance Max into their systems.
Additionally, certain ad agency staff express reservations about the tool, citing a lack of control over ad placements as a significant concern.
Exploring New Avenues
Beyond Performance Max, Google has introduced Demand Gen, another AI-driven product targeting social ad budgets. This recent offering, launched three months prior, identifies an advertiser’s top-performing video and image ads, showcasing them on platforms like YouTube, YouTube Shorts, Google Discover, and Gmail.
Despite a period of reduced ad spending in 2022 and 2023, advertisers remain discerning about their expenditures. Google’s recent initiatives reflect its determination to stand out amidst other digital advertising giants.
In conclusion, as digital advertising landscapes evolve, Google’s strategic shifts underline its commitment to stay ahead and offer value to both large and small advertisers in the B2B marketing space.