Google Search Ads has been the backbone of digital marketing for over two decades. But right now, in 2025, we’re witnessing the most dramatic transformation since the platform first launched. If you’re running paid search campaigns for your business or managing digital marketing for clients, what worked last year won’t work tomorrow.
I’ve spent over a decade managing Google Ads campaigns for brands across Kerala and India, from real estate companies like Skyline Builders to education consultants like Abe Services. The changes happening right now are fundamentally reshaping how we connect with customers through paid search.
This isn’t just another platform update. This is a complete reimagining of how search advertising works.
AI Is No Longer Assisting Campaigns, It’s Running Them
The biggest shift happening right now is the move from AI as a helper tool to AI as the primary campaign manager. Google has introduced AI Max for Search, a game-changing feature that launched in May 2025 and is now rolling out globally.
What Is AI Max for Search?
Unlike Performance Max (which is a separate campaign type), AI Max is an opt-in feature suite that supercharges your existing Search campaigns with three powerful capabilities:
Search Term Matching goes far beyond traditional keyword targeting. The system analyses your keywords, ad copy, URLs, and landing page content to identify relevant high-intent queries you’d otherwise miss. It combines broad match intelligence with “keywordless” technology, meaning it can capture searches that align with user intent even when they don’t match your exact keywords.
For example, if you’re running campaigns for an education consultancy in Kochi, AI Max might show your ads for queries like “best overseas education consultant near Lulu Mall” or “university admission help Kerala”, even if you never bid on those specific terms.
Text Customisation dynamically generates headlines and descriptions in real-time based on what the user is searching for and what’s on your landing page. Google’s AI has dramatically improved this feature, delivering clearer calls-to-action and sharper selling points that adapt instantly to each searcher.
Final URL Expansion works like Dynamic Search Ads, automatically directing traffic to the most relevant pages on your website when AI predicts better performance. This gives Google flexibility to match users with your best-converting landing pages.
The Results Are Impressive
Google reports that campaigns using broad match with AI Max see 14% more conversions or conversion value at similar CPA/ROAS. For campaigns that previously relied only on exact or phrase match keywords, improvements reach up to 27%.
I’ve been testing this with select campaigns, and the early results are promising, especially for long-tail, intent-based searches that we’d never have captured with traditional keyword targeting.
Search Behaviour Is Becoming Conversational
The way people search on Google is fundamentally changing, and this shift is especially pronounced in India.
From Keywords to Questions
Users no longer type robotic phrases like “best digital marketing agency Kochi.” Instead, they ask complete questions: “Which digital marketing agency in Kochi can help me with Google Ads?” or “What’s the cost of running Facebook ads for my business in Kerala?”
This shift is being driven by several factors:
Voice search adoption through Google Assistant, Alexa, and Siri
Mobile-first behaviour- over 80% of Indian internet users access the web primarily through smartphones
AI tools like ChatGPT normalising conversational interactions with technology
More than 58% of searches are now “zero-click”, meaning users get answers directly in AI Overviews without clicking through to websites. This is changing the entire search landscape.
What This Means for Your Campaigns
Your keyword strategy needs to evolve. Start incorporating question-based, long-tail keywords that mirror how people actually talk. Instead of just “real estate Kochi,” add variations like:
“What are the best residential projects in Kochi under 50 lakhs?”
“Which builder offers best payment plans in Ernakulam?”
“How to choose the right apartment in Kochi?”
Your ad copy also needs to become more conversational and benefit-focused. Talk to your audience like a helpful consultant, not a corporate brochure.
The Search Generative Experience (SGE) Is Changing Ad Placement
Google’s Search Generative Experience- AI-generated answers appearing at the top of search results is transforming where and how your ads appear.
What Is SGE?
SGE provides comprehensive, AI-written answers to user queries directly on the results page, highlighted in blue. Instead of scanning a list of links, users receive complete summaries with supporting sources.
How It Affects Your Ads
Ad positions are shifting. Traditional ad slots (four above organic results) are being reduced to just two positions above organic or AI sections. However, Shopping ads frequently appear above SGE 81% of the time, excellent news for e-commerce advertisers.
Visual elements matter more. SGE places higher emphasis on images and visual extensions in ads. Make sure your ad creative is visually engaging.
Conversational copy wins. As search becomes more conversational through SGE, ad messaging needs to adapt. Interactive, benefit-focused copy that answers specific questions will outperform traditional product-focused ads.
Research shows CTRs for ads shown alongside AI overviews have been dropping since September 2024. This means competition for attention is fiercer than ever, and only the most relevant, compelling ads will break through.
Your Role as a Marketer Is Changing
As AI handles more routine optimisation tasks, what marketers do day-to-day is fundamentally shifting.
From Manual to Strategic
Google Ads automation now handles most tasks that once consumed hours: bid adjustments, budget pacing, keyword research, and even creative testing. If you’re still spending your days tweaking individual keyword bids, you’re working in the past.
The modern PPC marketer focuses on:
High-level strategy and goal-setting. Your job is to guide the machine by setting clear business objectives, providing quality inputs, and refining targeting constraints.
Creative excellence. Since AI handles technical optimization, your competitive advantage now lies in compelling ad copy, strong value propositions, and creative assets that resonate with your audience.
Data quality and first-party data enrichment. Automation only works as well as the data feeding it. Ensuring accurate conversion tracking, proper analytics setup, and building robust first-party data strategies are now essential.
Full-funnel thinking. You need to understand customer journeys, align campaigns with business goals, and interpret AI-driven insights to refine strategies.
Skills You Need to Master
To stay competitive in 2025 and beyond:
Data analytics and interpretation using Google Analytics 4
AI and automation expertise- knowing when to trust automated systems and when to intervene
Advanced audience segmentation using first-party data
Ad copywriting and creative strategy that converts
Conversion tracking and measurement setup
Strategic thinking that connects advertising to business outcomes
The marketers who thrive will view AI as a powerful assistant rather than a replacement.
Smart Bidding: Let AI Optimise for Results
Automated bidding has evolved from a risky experiment to an essential best practice. Google’s Smart Bidding strategies use machine learning to optimize bids at the auction level, considering thousands of signals humans simply can’t process.
The Main Smart Bidding Options
Target CPA (Cost Per Acquisition) automatically sets bids to get as many conversions as possible at your target cost per acquisition. This works best when you have clear cost targets and want to maximize lead volume within budget constraints.
Target ROAS (Return on Ad Spend) optimizes campaigns for a specific return on ad spend, ideal for e-commerce businesses. The algorithm focuses on transactions that meet your ROAS goals.
Maximize Conversions automatically sets bids to get the most conversions for your campaign while spending your full budget. Perfect when conversion volume is your primary goal.
Maximize Conversion Value focuses on maximizing total conversion value (revenue) rather than just conversion count.
Best Practices for Smart Bidding
Have sufficient budget. Smart Bidding needs room to test and learn. If your budget is too tight, the algorithm won’t gather enough data to optimize effectively.
Give the algorithm time. Campaigns typically need at least two weeks to gather sufficient conversion data. Avoid making constant changes during this learning period.
Ensure you have enough conversion data. Google recommends at least 30 conversions in the last 30 days for Search campaigns. If you don’t have this volume, consider consolidating campaigns.
Maintain conversion tracking accuracy. Smart Bidding is only as good as the conversion data it receives. Implement proper tracking through Google Tag Manager and regularly audit data quality.
First-Party Data: Your Competitive Advantage
As third-party cookies disappear and privacy regulations tighten, first-party data has shifted from “nice to have” to “essential for survival.”
Why First-Party Data Matters
First-party data information you collect directly from customers through your website, app, email interactions, and purchase behaviour is accurate, privacy-compliant, and specific to your audience.
The benefits include:
Improved match rates- 60-80% in Google’s Customer Match compared to 20-30% for stale data
Better targeting precision based on actual behaviour
Privacy compliance with GDPR, CCPA, and Indian data regulations
Enhanced AI performance- automation works better with quality data
Building Your Strategy
Collect data at every touchpoint. Use Google Analytics 4 to track site and app events. Pull verified emails and phone numbers from your CRM. Capture offline conversions from store purchases or phone leads.
Organize and segment your audience. Create meaningful segments based on behavior—recent purchasers, cart abandoners, high spenders, geographic location. The more granular your segments, the more personalized your campaigns can be.
Integrate data into Google Ads. Upload customer lists through Customer Match to show tailored ads. Create Similar Audiences to find new users matching your best customers. Use remarketing to target users who’ve interacted with your site.
Enrich your data continuously. Attach value signals like total spend, last purchase date, and product preferences to each customer record.
Major Challenges to Watch For
Rising Costs
Cost-per-click and cost-per-conversion have been rising steadily, and this trend continues. As more businesses recognize paid search effectiveness and competition intensifies, maintaining profitability requires constant optimization.
Your response: Focus on improving conversion rates through landing page optimization and better targeting. Higher conversion rates allow you to bid more aggressively while maintaining profitability.
Tracking Difficulties
Privacy-focused changes from Apple, Google, and regulatory bodies have made accurate conversion tracking increasingly difficult. Attribution windows are shorter, cross-device tracking is limited, and many conversions go unmeasured.
Your response: Implement Google’s enhanced conversions, set up server-side tracking, and use first-party data to fill tracking gaps.
Trust and Transparency
Despite improvements, many advertisers remain skeptical of Google’s automated systems. The lack of full transparency in Performance Max and AI Max campaigns creates anxiety about where budgets are going.
Your response: Maintain healthy skepticism and regular oversight. Use the new channel-specific reporting features and never “set and forget” campaigns.
Regulatory Scrutiny
Competition authorities worldwide are increasing scrutiny of Google’s market dominance. The UK designated Google as having “strategic market status” in search advertising in October 2025.
Your response: Stay informed about regulatory changes and diversify your advertising channels where possible.
Your Action Plan: What to Do Right Now
The future is already here. Don’t wait to adapt.
Immediate Actions (This Week)
✓ Audit your conversion tracking. Ensure accurate tracking is in place across all campaigns. Implement enhanced conversions if you haven’t already.
✓ Review your Smart Bidding strategies. Confirm you have sufficient conversion volume (30+ per month) and adequate budget.
✓ Opt into AI Max for at least one Search campaign. Start testing now. Give it 2-4 weeks to complete the learning phase before judging performance.
✓ Check your ad copy. Ensure messaging is conversational, benefit-focused, and answers specific customer questions.
Short-Term Priorities (This Month)
✓ Build your first-party data infrastructure. Set up Customer Match lists and create audience segments based on behavior and value.
✓ Optimize landing pages for relevance and conversion. Since AI Max and URL expansion may direct traffic to different pages, ensure all landing pages are conversion-optimized.
✓ Set up brand and URL exclusions. Guide AI-driven campaigns away from terms or pages that don’t align with your goals.
✓ Train your team. Invest in Google Skillshop courses and ensure your team understands how to work alongside AI.
Long-Term Focus (Next 6-12 Months)
✓ Develop comprehensive first-party data strategy. Create sophisticated segmentation, value-based bidding, and personalized creative for different audience segments.
✓ Shift your team’s skills. Move resources from manual bid management toward creative development, strategic planning, and data analysis.
✓ Test and scale AI-powered campaign types. Once you’ve validated AI Max and Performance Max performance, scale successful approaches.
✓ Prepare for conversational search. Update keyword strategies to include long-tail, question-based queries. Rewrite ad copy to be conversational and benefit-focused.
✓ Diversify beyond Search. Use the full “Power Pack” (AI Max, Performance Max, Demand Gen) to reach customers across Google’s ecosystem.
Key Resources
Google Skillshop offers free, comprehensive training on all Google Ads features directly from Google.
Think with Google publishes case studies, best practices, and strategy insights.
Search Engine Land and Search Engine Journal provide daily news and tactical guides from leading PPC experts.
Google Ads Help Center includes official documentation on features, policies, and troubleshooting.
The Bottom Line
The future of Google Search Ads is not about choosing between human expertise and AI automation; it’s about leveraging both strategically.
AI excels at processing vast amounts of data, optimizing bids in real-time, and scaling campaigns efficiently. Human marketers excel at creative strategy, understanding customer psychology, setting business-aligned goals, and interpreting results in broader context.
The advertisers who will dominate are those who:
Embrace automation intelligently while maintaining strategic oversight
Prioritize data quality and build robust first-party data assets
Focus on creative excellence as the primary competitive differentiator
Stay agile and continuously learn, adapting to platform changes
Think full-funnel, aligning paid search with overall business strategy
The transformation happening right now is as significant as the shift from traditional advertising to digital. Those who recognize the change early and adapt decisively will capture disproportionate advantages.
The question isn’t whether to embrace AI-powered Search advertising- it’s how quickly you can do it effectively.
If you need help navigating these changes or want to discuss how AI Max and automation can work for your business, get in touch. Let’s build a future-ready Google Ads strategy together.
