Google Ads Updates 2025: Key Takeaways from Google Marketing Live (GML)

ai max for search demand gen campaigns google ads updates 2025 google marketing live 2025 performance max strategy Jun 11, 2025

Google Marketing Live 2025 has wrapped, and with it came a fresh batch of updates, AI rollouts, and campaign structure changes. If you're a business owner or digital marketer, here's the question you care about:

What do these Google Ads updates mean for your business?

This post breaks down the real impact of these announcements—what matters, what doesn't, and the specific steps you need to take to stay ahead.

Google’s Case Studies: What You’re Not Being Told

During GML, Google shared impressive data points like:

“Brands like Volvo using AI Max saw up to 27% more conversions.”

While true, these results come from closed beta tests with large enterprise budgets—often $10K+ per month—and subsidized ad spend.

Before you act, ask your Google rep:

“Can you share 2–3 case studies for businesses in my industry with similar budgets?”

Why this matters:

Google doesn’t disclose average spend or industry split in these tests
Results may not reflect what’s achievable in smaller or service-based accounts

Google's Core Message: AI Is the New Advantage

This year’s theme was:

“Our AI advantage is your business advantage.”

Underpinning this promise is Gemini 2.5, Google's latest AI engine now powering Google Ads. According to benchmark data, Gemini tops the AI WebDev leaderboard in key performance categories.

When implemented correctly, this can lead to:

Lower cost-per-acquisition (CPA)
More conversions without increasing ad spend
Improved funnel performance across Search, YouTube, and Shopping

But results only come when your campaigns are optimized. AI is not a shortcut—it enhances performance based on your inputs.

👉Google Ads AI MAX Update: What Advertisers Need to Know About the Future of Keywordless Targeting

What Is the Power Pack Campaign Strategy?

Google introduced a new structure called the “Power Pack”, which includes:

Performance Max (PMAX)
AI Max for Search
Demand Gen

This expands last year's "Power Pair" structure of Search + PMAX.

Should you use the Power Pack strategy?

For lead generation and service businesses: Not recommended yet
For ecommerce brands: Worth testing, but not a blanket rollout

Instead of overhauling everything, test AI Max in a standalone search campaign. Collect performance data and evaluate before scaling.

Start with the Bottom-Up Funnel Strategy

The foundation of a successful Google Ads account in 2025 is intent-based funnel progression—what I call the Bottom-Up Funnel Strategy.

Step 1: Own the Bottom of Funnel

Start with Search (or Search + Shopping if ecommerce)
Focus on high-intent keywords and conversion-ready traffic

Step 2: Scale Strategically

Increase budget when conversion rates are strong (Search: 7%+, Shopping: 3%+)
Only then, layer in PMAX, Remarketing, and eventually Demand Gen

Step 3: Expand to Top of Funnel

Use Demand Gen and YouTube to reach colder audiences
Focus on awareness, brand lift, and re-engagement

This structure gives you the scale and efficiency promised by AI—without sacrificing conversion control.

Changing Search Behavior: Why Keywords Alone Aren’t Enough

Search queries are becoming more conversational. People are asking full questions, using voice search, and expecting personalized results.

What this means:

Keyword targeting alone won’t work
Campaign structure, intent signals, and creative matter more than ever
Broad match needs strategic guardrails (audiences, exclusions, exact match anchors)

Demand Gen and YouTube Ads Are Now Essential

Video advertising is no longer optional—especially for ecommerce brands.

Here’s why:

45% of YouTube Shorts viewers aren’t on TikTok
65% aren’t on Instagram Reels

YouTube’s audience is unique and growing, and Demand Gen campaigns are now a core part of the Google Ads ecosystem.

New features to leverage:

Demand Gen Exclusions: Prevent ads from showing to past customers
Attributed Branded Searches: Track brand searches triggered by discovery ads
Shoppable YouTube Shorts: Drive sales directly from short-form video

These updates give advertisers more control—and more visibility—across the entire funnel.

What to Do Next: Action Plan for Your Google Ads Account

Here’s how to make the most of GML 2025:

1. Review Campaign Fundamentals

Is your conversion rate strong? (Search: 7%, Shopping: 3%)
Are your ad groups segmented by intent, product, or audience?
Are you excluding branded terms from PMAX and Demand Gen?

2. Structure for Scale

Start with Search and Shopping
Use remarketing to increase conversion volume
Introduce PMAX and Demand Gen only when foundational campaigns are optimized

3. Prepare for Video

Audit your creative assets
Plan for Shorts and in-feed video content
Watch for the release of Creator Partnerships Hub and Asset Studio

Final Thoughts: Strategy First, AI Second

Google Ads is evolving fast—but the core principles remain the same.

Even with AI, your success comes down to:

Targeting the right audience
Having a compelling offer
Optimizing landing pages and creative
Scaling through structured, data-backed decisions