Google’s AI-powered ad shift in 2025 reshapes PPC strategy

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This year, in 2025, Google made a major change by placing Shopping ads directly into AI Overviews at the top of search results. These ads now show up when people search for products with buying intent. The update, now live on desktop in the U.S., is expected to roll out globally soon. This gives advertisers a new chance to get seen, but also means more competition for top placements. It’s a clear signal that Google is moving away from old-school keyword-based ads.

Conversational search creates new ad opportunities

Another big update is AI Mode, a new feature that lets people ask multi-step questions and follow-ups. While still in testing, it shows ads pulled from Shopping and Performance Max campaigns. This helps brands reach people who are still exploring options, not just ready to buy. If you’re a Google Ads expert for hire or looking to hire a PPC consultant, this opens the door to more targeted mid-funnel ad strategies.

Google’s new creative tools save time and money

To help advertisers keep up with demand, Google added AI tools that create product videos and lifestyle images. These features, now part of Merchant Center, allow brands to quickly produce high-quality visuals without needing a full creative team. There are controls in place to protect branding, but companies should still review AI-generated content for accuracy and tone.

Performance Max and AI Max lead full-funnel strategy

Google now encourages advertisers to use a combination of campaigns, Performance Max, AI Max, and Demand Gen. Together, this “Power Pair” strategy covers every step of the customer journey. AI helps find audiences, automate bidding, and loosen ROAS limits to boost conversions. Still, transparency remains an issue, especially for businesses managing multiple campaigns without full control over placements.

Automation helps, but human oversight matters

While AI tools offer speed and scale, marketers still need to stay sharp. Tracking conversions, impression share, and click-through rates is more important than ever. Tools like virtual try-on and AI checkout improve user experience, but manual reviews and a strong strategy will separate average results from great ones. Whether you’re a Google Ads freelancer or part of a PPC agency, staying hands-on is still key to successful Google Ads management.

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