Google is beta testing a new product which allows website owners and AdWords advertisers to automatically generate their AdWords campaigns by submitting a list of their product details via data feeds. The search engine uses the information from the feeds to determine the best keywords for those pages and automatically creates ads that link to them. This is brilliant news for any site owners who have a large database of products as they can now upload the whole lot at once.

The new Google ad automator feature is initially only being offered to select Froogle merchants who also advertise on the AdWords platform. The tool allows you to manage large, scalable campaigns without investing much time and effort. The ad automator dynamically generates accurate AdWords ads targeted to search queries. The content for these ads comes from the data feeds (that you submit as often as you like) containing your product descriptions, specifications, and information. These data feeds are simply tab delaminated text files. You can in fact use your existing Froogle data feed with some extra columns.

The AdWords system then generates ads from the content in your data feed (or from information you submit through the AdWords interface). This means that you can either let Google create your ad copy for you or you can set it yourself. It then continually analyzes all search queries to see whether they're relevant to any of your products. When it finds a relevant match, it shows your ads on the search page results.

Once setup, you can set daily campaign budget much like a normal adwords campaign. The CPC is set in one of three places. You can either specify your maximum CPC in the data feed, in the AdWords interface, or you can allow Google to determine it for you. The later method automatically sets your max CPC by using the average CPC of the competing ads. As with normal AdWords campaigns, you can have your ads displayed on both the Search Network or the Content Network, and geo-target them.

Some benefits of Ad Automator are that ads are dynamically targeted to queries. They are also automatically compliant with AdWords policies; once your data feed is approved, ads don't need to be reviewed again. You don't need to create new ad text. You can leverage existing product descriptions that are likely already on your website. (However, you may submit customized ad text in your data feed or through the AdWords interface if you like.) You can supplement existing marketing efforts without much additional effort.

All in all I think this is set to be a big improvement when it is fully launched. It will compete with Yahoo's Search Submit product whereby advertisers can pay to have their pages included in the search results.