Bonded Bitesize – Your Midweek Roundup

Google gives Responsive Search Ads more flexibility

Google is enhancing Search ads with AI-driven changes to improve asset flexibility, performance, and relevance. Its AI now dynamically assembles responsive search ads (RSAs), omitting certain elements if it boosts engagement. Additionally, unused headlines can now serve as sitelinks, maximising creative impact. Up to two RSA headlines may also appear in sitelink space, linking to the final URL. These updates help advertisers optimise their assets without extra effort, ensuring ads remain relevant to search queries and improve conversions. Google emphasises maintaining asset relevance and respecting pinned elements, with the combinations report offering insights into ad performance. This global rollout reinforces Google’s push for adaptable ads that better align with user intent while enhancing engagement and ROI.

Microsoft Quietly Tests ‘AI Search Mode’ For Bing

Microsoft is testing a new AI-powered search mode for Bing, distinct from Copilot but similar to Google’s AI search with summarised results. While Microsoft confirmed the feature’s development, details remain scarce. Reports suggest it offers an easier user interface, eliminating traditional blue links and keeping users within Bing while providing summaries, source links, and multimedia search results. This move aims to bridge the gap between AI and traditional search, potentially improving Bing’s market position against Google, which holds a 92% share. The feature appears live in some U.S. accounts under “Copilot Search,” hinting at an upcoming broader rollout. Microsoft has yet to provide further details, but the test signals its push for a more AI-driven search experience.

TikTok Saw Significant Growth in In-App Sales in 2024

TikTok’s intense focus on the U.S. market is driven by its massive in-app purchase revenue growth. According to Sensor Tower’s Q4 2024 “Digital Market Index” report, U.S. in-app spending increased by $1.47 billion, surpassing the combined growth of the next five largest markets. Globally, TikTok (including Douyin) generated $6 billion in in-app purchases, making it the highest-grossing app in 2024. TikTok is pushing to expand its eCommerce business, inspired by Douyin’s success in China, where its gross merchandise volume reached $490 billion. The U.S. leads TikTok Shop adoption, reinforcing why the platform is fighting to remain operational there. TikTok is also expanding eCommerce in other markets as a safeguard against potential U.S. restrictions, while digital ad spend continues to rise.

Google AI Overviews more volatile than organic rankings: Report

A new analysis by Authoritas shows that Google’s AI Overview rankings are significantly more volatile than traditional organic search results. Within two to three months, 70% of AI Overview rankings changed, with a volatility score of 0.73 over 13 weeks, compared to 0.55 for organic rankings. AI Overviews and organic rankings operate independently—only 60% of top 10 organic pages appear in AI Overviews, while 40% of AI Overview results feature pages not in the top 10. Additionally, AI Overview text snippets frequently change, even when sources remain the same. As AI Overviews continue evolving, businesses must actively track keyword performance to adapt their SEO strategies and understand ranking shifts in this increasingly dynamic landscape.

Adobe launches a Photoshop iPhone app

Adobe has officially launched Photoshop for iPhone, marking its first step into mobile-based design and editing. The app offers both free and paid features, including layering, masking, and AI-powered tools like Generative Fill and Generative Expand via Adobe Firefly. Users can integrate Photoshop mobile with Adobe Express, Fresco, and Lightroom, while paid subscribers ($7.99/month) gain access to additional Firefly tools, premium fonts, and advanced editing features like Object Select and Content-Aware Fill. The move aims to attract younger, mobile-first creators and compete with apps like Snapseed, Picsart, and Canva, with an Android version expected later this year.

Google Sued Over AI Overviews For Hurting Traffic & Revenue

Chegg has filed a lawsuit against Google, claiming its AI Overviews unfairly retain traffic that previously went to Chegg, significantly impacting revenue and growth. The lawsuit alleges reciprocal dealing (Google forces companies to provide content to be included in search), monopoly maintenance (Google exploits its dominance to push out competitors), and unjust enrichment (Google benefits financially from third-party content without compensation). Chegg reports a 49% drop in non-subscriber traffic in January 2025 due to AI Overviews replacing direct site visits. Google argues AI Overviews enhance search usability and drive diverse site traffic, but many publishers say it drastically reduces click-through rates, sparking broader concerns about its impact on content creators and the future of internet search.

WPP Study finds 27% of shoppers purchase luxury goods through social e-commerce

A WPP study reveals that 27% of fashion and beauty shoppers who follow influencers have purchased luxury goods via social e-commerce on TikTok and Instagram. The research, featured in WPP’s playbook Beyond the Runway, highlights that 49% of shoppers find in-depth product reviews most effective, followed by 32% favoring user-generated content. Additionally, 39% consider influencers’ political views before purchasing, emphasising the importance of value alignment. Trust remains highest in friends and family (63%), followed by expert reviews (48%) and micro-influencers (24%). WPP stresses that brands must adapt by fostering authentic influencer partnerships and seamless shopping experiences to meet evolving consumer expectations in luxury social commerce.

Instagram Adds Text-Only Testimonials To Partnership Ads

Instagram is introducing a new feature within its Partnership Ads: creator endorsements in the form of sponsored comments. These testimonials, appearing as text-only comments, will be visible under the post and marked as part of the Partnership Ads. Instagram highlights that 40% of users consider creator recommendations when shopping, making these brief endorsements (up to 125 characters) an effective way to drive engagement and sales. Although only one testimonial per post is allowed, this feature offers a low-effort way for creators to earn additional income and for brands to leverage the influence of creator support. However, visibility may be limited compared to creator-made posts like Reels.

Google Rolls Out Improved AI Asset Generation for Ads

Google is enhancing its Performance Max campaigns with new AI updates to improve image generation and provide better campaign recommendations. The update includes AI-generated images of human characters using text prompts, focusing on more accurate depictions of people, especially faces and hands. Google has also introduced asset-audience recommendations, which suggest effective image themes based on top audience preferences, helping improve campaign visuals. Additionally, a beta test allows retailers to compare the impact of adding text, image, and video assets (including AI-generated ones) to campaigns, against configurations with no extra assets. These updates, available in Google Ads Manager, are designed to enhance ad performance and offer new creative ideas based on data-driven insights.

TikTok Ads Achieve Highest Short-Term ROI

A recent analysis of TikTok’s ROI shows that advertisers on the platform achieve strong returns for both short-term and long-term sales. TikTok delivered a short-term ROI of 11.8, meaning advertisers saw nearly 12 times their investment in sales within just six weeks. Comparatively, the average short-term ROI from all media channels was 8.7. 75% of advertisers found TikTok provided the highest ROI, especially when combined with lower-funnel platforms. User-generated content, particularly storytelling-focused, had the strongest sales impact, driving 70% higher ROI than tactical promotions. Long-term, TikTok also delivered a 4.5 ROI up to 10 months after exposure, showing its potential for both immediate results and brand equity building.