As search changes to accommodate new AI features, Google Ads is also expected to see significant changes in 2025. In fact, some changes have already been rolled out, presenting new opportunities to merchants.
Over the past year, I’ve managed campaigns that embraced AI-driven tools, automation, and immersive ad formats. I’ve seen firsthand how these innovations can elevate performance. For example, Generative Experience Optimization (GEO) has transformed how ads interact with AI-powered search engines. Campaigns can now be more conversational.
Automated bidding strategies are also leveraging AI to enhance ad performance and maximize campaign ROI through real-time data analysis and predictive targeting.
In this article, I’ll break down five pivotal trends shaping Google Ads in 2025 and provide actionable tips to help you refine your strategy.
Let’s get started!
AI in Google Ads and Generative Experience Optimization (GEO)
The future of Google Ads is changing thanks to AI. Artificial intelligence is redefining ad campaign management and performance. There’s hyper-personalized targeting, predictive analytics, and automated ad optimization. We'll discuss these in detail shortly.
But, at the forefront of these exciting AI-powered tools is Generative Experience Optimization (GEO).
GEO refers to the process of optimizing digital content to improve its visibility in generative AI search engines. The goal is to rank high in AI-generated responses when users ask queries that align with your products or services. Some of these platforms include Google’s Gemini, ChatGPT, and Microsoft's Copilot.
See the example below.
So, how has GEO revolutionized Google Ads?
- Interactive search ads: With GEO, ads are not static snippets. Instead, the AI-powered solution integrates them into conversational search results. As shown above, a platform like Gemini will answer user queries and suggest products.
- Real-time ad experiences: GEO can improve ads and user interactions using real-time data and feedback. Say a user refines their query further after the initial prompt. GEO will provide more accurate responses and accompanying ads.
- Predictive insights: GEO can leverage user data to predict user intent behind searches. This ensures the Gen AI platforms serve personalized ads at the perfect moment. For instance, queries with commercial intent will see a range of ads on specific products since they are still researching.
Those with transactional intent, say, “buy best laptops for coding,” might see more ads with promotional offers since they are ready to buy.
As Generative AI continues to evolve, GEO will remain one of the aspects that define the future of Google ads. It will ensure search engines show ads that feel less intrusive and more like helpful suggestions. Research predicts a 25% drop in traditional search volume by 2026. More consumers will embrace AI-powered search solutions.
5 Trends shaping Google Ads
Several powerful trends are shaping the future of Google Ads. These trends are transforming how businesses reach and connect with their audiences. In this section, we will look at six of these trends and explore how you can leverage them to stay ahead.
1. AI-Powered Ad campaigns
AI is making Google Ads smarter, more efficient, and results-driven. Here are some AI features that are changing the current landscape and the future of Google Ads.
- Data-informed targeting: AI can analyze vast amounts of data. This typically includes browsing history, search intent, and purchase behavior. Additionally, it can identify patterns or valuable insights that predict user preferences and find similar audiences. This enables you to serve ads that are highly relevant to each individual.
- Real-time optimization: AI constantly analyzes performance metrics and optimizes campaigns on the fly.
You can refine your audience targeting if your ads are underperforming. You can also tweak ad copy to align with current trends or search behavior.
- Automated ad management: AI also automates many of the manual tasks involved in ad creation. AI-driven tools like Performance Max campaigns automatically generate ad creatives, formats, and placements.
They ensure your ads appear where and when they’re most effective, leading to better user engagement and conversion rates.
Note that Performance Max also uses AI to automate the entire campaign process across all Google channels. From ad creation, targeting, and bidding. This means you can reach your target audience across various channels, from Search to YouTube, in one streamlined effort.
2. Automation in bidding strategies
Automated bidding strategies use machine learning to determine the optimal bid for your ads based on your campaign goals.
Smart Bidding has been a game changer in Google Ads. Now, automation is taking ad optimization to the next level. Here are trends that are the future of Google Ads' automated bidding:
- Predictive bidding with first-party data: User privacy regulations have become more stringent. Additionally, there's the uncertainty about Google phasing out third-party cookies. In response, advertisers are using first-party data to improve automated bidding with strategies like Maximize Conversions and Maximize Conversion Value.
The data comes directly from customers. It could be shopping history, website interactions, and CRM data. This allows bidding algorithms to make more precise predictions. You can integrate your data into an RAG vector database, which will efficiently retrieve and process data to inform your bidding strategy.
- Improved seasonality adjustments: They're not new. But, Google has been refining how advertisers can set bids for short-term events. For instance, if you are running a Black Friday campaign, you can set higher bids for, say, three days. Google AI will automatically boost conversions during that critical sales period.
Google has also been urging advertisers to use Broad Match with smart bidding. The combination will maximize your campaign reach while optimizing your ad spend.
Say you're selling women's hats. With Broad Match, your ads could show for queries like "winter headwear for women" or "women's accessories." Smart Bidding will then optimize your bids for high-quality leads based on browsing behavior and other signals.
Performance Max campaigns are also streamlining automated bidding across Google’s ecosystem. With cross-channel bidding, Google AI will identify where your ads perform best. It will then shift budgets and bids to ensure the highest ROI conversions.
3. Visual immersive experience
Augmented Reality is changing Google Ads. AR offers immersive, interactive experiences to meet high customer expectations. Ultimately, these user experiences enhance customer engagement and confidence in purchasing decisions.
AR features include Google Ads AR beauty try-ons, virtual apparel try-ons, and 3D product displays.
The beauty virtual try-on lets users test products like lipstick and eyeshadow.
The apparel try-on is an asset for clothing retailers. It allows potential customers to visualize how apparels fit on diverse body types.
Google Ad’s 3D and AR product displays show 360-degree product previews. You can also zoom the product images in and out or even place them in real-world environments. This makes the feature particularly ideal for furniture or home decor retailers.
These AR features will help you create more compelling ads. This will, in turn, improve your ad campaigns’ performance.
4. Increased use of voice search
You can not speak of the future of Google Ads without discussing voice search.
The rise of voice search has transformed Google Ads in the following ways:
- More focus on conversational keywords: Voice searches are longer and more casual than text searches. Instead of typing "best pizza near me," users might ask, "What are the top-rated pizza places near me?" That means you must optimize your ad copy for NLP and add long-tail keywords to get your ads featured in the voice-search responses.
- Local search optimization: Voice searches often give preference to local intent. For example, users will typically search for "restaurants near me." Thus, include location-specific information in your ads to capture these local queries.
In Q2 2024, 96.2% of global users accessed the internet via mobile phones. The highest number of voice searches also came from mobile phones. To stay ahead, ensure you optimize your ad content and websites for mobile. For instance, stick to mobile-specific ad formats (mainly text or image ads). You should also bid higher for mobile devices.
5. Pick up later
Pick up later lets businesses promote products for later collection. But, they must meet a specific service-level agreement (SLA).
Google Ads has improved Local Inventory Ads to support the "Pick up Later" option. These ads allow retailers to showcase their products' availability in nearby stores. Retailers can now include pickup flexibility.
You can clearly highlight your store pickup options directly on your ads. There's “pick up today” or “pick up later with product data." You can also offer a “pick up later” option based on in-store inventory data for products that are temporarily unavailable in-store. The pin, in this case, will show when the product will be ready for pickup, as shown below.
The options appeal to consumers who value online shopping's flexibility and the immediacy of pickups. They are especially crucial during peak shopping seasons or for high-demand purchases.
Conclusion
Google Ads remains committed to helping brands efficiently connect with their audience. As a result, there are always new trends and updates you must master.
We have discussed six key Google Ads trends above—AI integration, AR, voice search, automated bidding, and pick-up later options.
Keep in mind that it is not just about the evolving technologies and platform updates. It’s about how you use these advancements to tell your story, reach the right people, and make them feel seen. The trends we’ve discussed are the future of Google Ads. But they will only be as effective as your creativity and advertising strategies.