Agencies today face rising acquisition costs in paid advertising. Pay-Per-Click (PPC) remains a vital strategy for reaching ready-to-purchase clients, but many find managing the associated expenses challenging. Now, marketers can choose between manual PPC management, AI automation, or a blend of both – raising a central question: Does AI outperform manual PPC campaign performance?

As a white-label digital marketing provider, Globital Marketing is here to help agencies like yours understand how these two approaches stack up and how you can leverage them to scale your operations and boost profits.

1.  How does AI in PPC advertising differ from a manual PPC approach?

There are clear differences between AI in PPC advertising and manual management. Traditional PPC relies on human expertise to set bids, select keywords, and adjust campaign settings on platforms like Google Ads or Microsoft Advertising. While automation tools exist, most campaign optimisation remains manual. This approach often struggles with the volume of decisions required, especially as campaigns grow.

In contrast, AI can analyse data and adapt quickly, managing multiple campaigns at once and adjusting bids, targeting, and creatives in real time. AI-driven PPC can process data in real-time, making bid adjustments, selecting ad creatives, and even targeting potential customers with greater speed and efficiency. By constantly learning from data, AI systems optimise campaigns for maximum performance, minimising the need for human input in everyday tasks.

2.  AI vs manual PPC campaign performance metrics 

Understanding the differences in AI vs manual PPC campaign performance largely comes down to how well each approach affects core performance metrics. Let’s break it down.

• Click-through rate (CTR):

AI campaigns generally outperform manual efforts in this area. For instance, according to an in-depth study by Zebracat, AI copywriting tools improve ad CTRs by 38%, reducing cost-per-click (CPC) by 32%. AI can dynamically adjust ad creatives and headlines, constantly testing combinations and learning what works best. While manual PPC allows for some A/B testing, it’s typically limited by time and available resources.

• Conversion rate (CVR):

AI-powered campaigns can achieve higher conversion rates through predictive targeting that delivers ads to more qualified traffic. However, AI’s effectiveness depends on proper conversion tracking, and misconfigured tracking can hurt performance. Manual PPC allows marketers to optimise with granular data, but AI often outperforms when scaling is needed.

• Cost per click (CPC) and cost per acquisition (CPA): 

Manual PPC management tends to offer more control over CPC, as marketers can adjust bids based on a detailed understanding of keywords and competition. AI-driven PPC might initially increase CPC due to its data collection phase. However, over time, it becomes more efficient at spending allocation, which can subsequently lower the overall CPA. AI-generated ad creatives boost Facebook & Google Ads CTR by 47%, reducing cost per acquisition. 

• Return on ad spend (ROAS):

AI systems often deliver higher ROAS once they’ve had time to learn and stabilise. They use real-time auction data to make decisions in the blink of an eye, often yielding more conversions for lower costs. On the other hand, manual campaigns can still perform well, particularly in smaller, more niche markets where precision is key.

3.  The push and pull of human expertise vs. automation 

While AI in PPC advertising has many advantages, human expertise remains irreplaceable in certain areas. There’s an undeniable push and pull between human expertise vs. automation, each playing a crucial role in the overall success of PPC campaigns.

• Human strengths:

Humans are adept at understanding nuances in branding, messaging, and compliance regulations. A human PPC manager can identify and address subtle issues, such as changes in market dynamics or shifts in customer sentiment, that AI may overlook. Additionally, humans excel at crafting compelling narratives and creative strategies that resonate with target audiences.

• AI strengths:

AI, however, excels in data processing. It can analyse vast amounts of data at speeds and accuracies that no human could match, helping to optimise bids, ad creatives, and audience targeting in real-time. This level of automation frees up human marketers to focus on more strategic, high-level tasks rather than time-consuming manual adjustments.

• The ideal scenario:

The most successful PPC campaigns often integrate both AI and human expertise. Humans provide the overarching strategy, creative direction, and decision-making around budget and goals, while AI handles the day-to-day tactical execution. This hybrid model allows agencies to scale campaigns quickly while ensuring that the brand’s voice and strategic goals are maintained.

4.  Understanding which approach to use – and when

Choosing between AI-driven PPC and manual PPC depends on several factors, including campaign size, budget, and available resources.

• When to lean toward manual PPC:

Manual PPC is ideal for smaller, niche markets where granular control is required. If you have limited data or operate in highly regulated industries where message control is essential, manual PPC allows you to refine campaigns carefully. It also makes sense for campaigns where you need to monitor bids closely or work in areas where AI systems may not yet have enough data to make optimal decisions.

Quick decision checklist for manual PPC suitability:

• Smaller, niche market: Is your target audience limited or specific?
• Granular control needed: Do you require fine-tuned control over your campaigns?
• Limited data: Is there a lack of historical data for AI to learn from?
• Regulated industry: Are there strict compliance or messaging regulations that need constant oversight?
• Bid monitoring: Do you need to adjust bids frequently based on real-time performance?
• Data scarcity for AI: Is there not enough data to allow AI to optimise effectively?

If you answered “yes” to any of these, manual PPC might be the best choice for your campaign.

• When to use AI-driven PPC:

AI-driven PPC becomes invaluable when your campaign involves a larger ad spend, dynamic product inventories, or a broad audience base. AI excels at scaling campaigns quickly, adjusting bids in real time, and optimising performance across multiple platforms without human intervention. If speed, efficiency, and ROI are top priorities, AI should be your go-to solution.

Quick decision checklist for AI-driven PPC suitability:

• Larger ad spend: Does your campaign have a significant budget that requires efficient management?
• Dynamic product inventory: Are you managing a large or constantly changing product catalog?
• Broad audience base: Is your target audience diverse or expansive across multiple demographics?
• Need for speed: Do you require rapid adjustments to bids and campaign settings?
• Efficiency and ROI focus: Are speed, efficiency, and maximising ROI your primary goals?

If you answered “yes” to any of these, AI-driven PPC could be the ideal choice for your campaign.

Final thoughts

As a digital marketing agency looking to scale, it’s important to understand the distinct roles that AI and manual PPC management can play in optimising your campaigns. While AI offers significant advantages in terms of speed, data analysis, and scalability, human expertise remains critical for crafting brand messaging and strategic oversight. 

By integrating AI where appropriate and relying on human expertise for strategic decision-making, you can optimise your PPC campaigns and drive superior results – ultimately allowing your agency to focus on what matters most: growing your client base and increasing revenue.

With the right approach, you’ll see significant improvements in AI vs manual PPC campaign performance, ensuring that your agency stays competitive. 

Ready to optimise your AI in PPC advertising campaigns? Book a free consultation with Globital today and see how our white-label PPC services can enhance your AI vs manual PPC campaign performance. Let our experts help you scale and achieve better results with less effort!