The Future of Google Ads: Smarter Campaigns, Richer Results and AI-Powered Possibilities

Google Marketing Live 2025 unveiled a raft of exciting updates aimed at helping advertisers stay ahead of shifting consumer expectations and search behaviours. From channel-level insights in Performance Max to next-gen AI-powered ad formats, the future of Google Ads is being shaped by automation, creative tools, and deep integration across surfaces. We’ve broken down the most impactful updates, why they matter, and how advertisers can prepare.

Performance Max Gets More Transparent

Perhaps the most welcomed update for Paid Media professionals is the new channel-level reporting for Performance Max (PMax). Long a black box, PMax has made it difficult to understand which channels are driving results. Google is now rolling out reporting that breaks down performance by Search, Display, YouTube, Shopping, Gmail, Discover, and Maps. This added transparency will allow advertisers to optimise creative and budget allocation with far greater precision.

Use case: Reassess asset performance by channel. Tailor creatives and landing pages to the channels driving the most valuable traffic.

AI Placements for Ads

Google is testing a new experience where ads are displayed in AI-generated overviews. This could redefine top-of-page visibility, integrating ads natively into the AI-generated answer box that appears for eligible queries. While Google’s new AI Mode might become a new “platform” for search and shopping ads to show up in the future.

Use case: This changes the real estate and user flow in Search results. Advertisers will need to ensure ad copy aligns with informational intent and feels organic within the new AI context.

AI Max: The Next Evolution in Campaign Automation

AI Max is Google’s upcoming campaign type that builds on Performance Max but takes it Search campaigns to the next level. AI Max allows advertisers to go beyond simple keyword matching by capturing broader, more nuanced queries – even when users ask complex or exploratory questions. It brings together broad match, keyword-less AI targeting, and creative customisation in a single toggleable solution.

Use case: AI Max will likely function as a “hands-off” option for advertisers and it can help unlock untapped demand and test new messaging angles – all while retaining reporting transparency and brand control.

Enhanced Brand Profile on Search

Brands can now upgrade how they appear across Google surfaces with the Brand Profile feature. It allows businesses to showcase curated brand assets, such as logos, taglines, and visual storytelling elements, directly in Google Search. This is part of Google’s effort to support better brand recognition within shopping and organic results.

Use case: Perfect for retail and DTC brands looking to stand out visually and build trust. A quick win for any business.

Video Ads Expand Across More Surfaces

A notable insight from Google: Video ads are coming to Search, Image Search, and Shopping. This means that high-quality video assets are no longer optional – they’re becoming essential to drive success.

Use case: Start investing in 15s and 30s product-focused or branded video creatives to ensure we are meeting Google’s best practice to get the most of your ads.

Product Studio Gets a Major AI Upgrade

Google’s Product Studio now features generative AI tools that let merchants create new product images, remove backgrounds, and apply seasonal or trend-based styles on the fly. For brands without huge creative teams, this levels the playing field.

Conclusion

The future of Google Ads is rapidly evolving toward a more visual, AI-enhanced, and performance-driven ecosystem. By embracing new tools like AI Max, optimising for emerging placements like AI Mode in Search and preparing with high-quality video assets and enriched brand profiles, advertisers can stay competitive in an increasingly automated landscape.

At Propellernet, we help ambitious brands deliver measurable growth. Whether you’re curious about what these changes mean for your marketing strategy or ready to build campaigns that thrive in the AI era, we’re here to help.

Get in touch to future-proof your performance marketing.