How Google Ads will Work in 2026

ai mode google search future of google ads google ads 2026 google ai overviews ctr performance max growth Dec 01, 2025

2026 will mark one of the biggest shifts we’ve ever seen in Google Ads — not because of new campaign types or algorithm updates, but because of the way people interact with Google Search itself.

Over the last five years we’ve seen major rollouts including Performance Max, Demand Gen, changes to keyword match types, AI Max and the rise of automation across the entire platform. But even with all of these updates, the real disruption ahead has much less to do with Google Ads… and much more to do with how users behave inside Google Search.

And if your business depends on Google Ads for leads, sales or growth, you need to understand what is happening now so you can position your brand for success in 2026.

The Data: Click-Through Rates Are Dropping Fast

Search Engine Land reported on November 5th:

“Organic click-through rates (CTR) for informational queries featuring Google AI Overviews fell 61% since mid-2024, while paid CTRs plunged 68%.”

This is an enormous shift.

It means fewer people are clicking ads. Fewer people are visiting websites. More users are getting their answers directly inside search results.

This isn’t speculation — it’s already happening.

So the real question becomes:

How do you survive (and succeed) when your customers are clicking less often?

This blog will walk you through:

What these changes mean for advertisers
Why 2026 will force a shift in account structure
What you must start doing now
Which campaigns will continue to work
When you should expand to new campaign types

Search Is Changing — But Google Ads Still Follows Two Core Rules

Even with all the change, two foundational principles of Google Ads remain exactly the same.

1. Google Ads is still an auction — and Ad Rank decides who wins

Many people assume the highest bid always wins, but Google Ads is nothing like a house auction. Your ability to appear (and appear profitably) is driven by Ad Rank, which Google recently updated to use six core factors.

These include:

Expected CTR
Landing page experience
Ad relevance
Auction competitiveness
Bidding strategy
Creative quality (especially for AI-heavy formats)

This is why businesses with smaller budgets can outperform large competitors — if their structure, relevance and creative inputs are better.

2. Targeting is no longer just keywords

This is the biggest mindset shift advertisers must make heading into 2026.

Google Ads now targets based on:

Keywords
Audiences
Demographics
Locations
Devices
Content placements

Over the past two years, placement optimisation has become essential. If you know where profitable users spend time — on specific YT channels, apps or websites — you can increase efficiency even while total search clicks decrease.

This matters even more in Performance Max and Demand Gen where placements directly influence results.

So What Does This Mean for Your Current Google Ads Strategy?

Let’s start with the good news:

You do NOT need to rebuild your entire account for 2026.

Search, Shopping and Performance Max will still be the core foundation of a profitable Google Ads account next year, and likely for years to come.

But you do need to pay attention to early warning signs.

If any of the following start happening, it’s time to expand your campaign mix:

Your month-on-month clicks are decreasing (even when budget stays the same)
Your CPCs are increasing significantly
Your conversion metrics are weakening

These shifts are early indicators that AI Overviews and AI Mode are reducing available traffic — and you will need more surface area inside Google’s ecosystem to maintain growth.

What to Do If You See These Warning Signs

When it’s time to adapt, there are two key moves to make — but make them carefully. You should not rebuild your account or pause what is currently working.

Instead, add one of the following options slowly and strategically:

Option 1: Start Testing Broad Match or Performance Max

Here’s why this matters:

Google confirmed that ads inside AI Mode or AI Overviews can only appear if your campaign uses:

Broad match keywords
Performance Max
AI Max

So if your account is still relying only on Exact or Phrase match search campaigns, you simply cannot appear in these placements.

How to introduce these safely:

A. Add long-tail broad match inside existing high-performing ad groups

Use broad match only where Google already has good conversion signals
Monitor search terms carefully
Add negatives slowly

This gives Google the flexibility it needs without opening the floodgates.

B. Start a Performance Max campaign

For eCommerce → start immediately once you have solid product titles, feed quality and conversion volume.
For Lead Gen → wait until you have offline conversions (minimum 30+ in 4–6 weeks).

In both cases:
Do not judge results after 1–2 weeks. Give it time to stabilise.

Option 2: Add a Demand Gen Campaign

This is especially powerful for:

Brands with declining search volume
Rising CPCs
Seasonal dips
Competitive niches

But remember:

You can’t run $10/day targeting the entire USA
Use a minimum viable budget ($30–$100/day depending on geography)
Test in a single city
Measure results outside Google Ads (geo-lift, blended CPA, brand search increase, etc.)

Demand Gen works — but rarely inside traditional in-platform metrics.

👉The Biggest Mistakes I see with Demand Gen Campaigns

So What Should You Do Right Now?

If your search + PMax setup is still working well…

Keep going. Don't change what’s working.

But start preparing your strategy now by:

Learning how broad match works in 2026
Cleaning your account structure
Reviewing your placements in PMax and DGen
Improving creative inputs (AI Mode uses your assets heavily)
Strengthening landing pages and offer pages
Tracking more conversions (especially offline events for lead gen)

This is the year where more precise data will win, not necessarily the biggest spenders.

Final Thoughts: How to Stay Ahead in 2026

2026 isn’t the death of Google Ads — but it is the death of relying on outdated search-only strategies.

The advertisers who win will be those who:

Adapt early
Use broader targeting signals
Strengthen their account structures
Measure results beyond last-click
Build campaigns that support each other

AI Mode will become the default. Paid and organic CTR will continue to decline. But brands who diversify their campaign types and feed Google better data will still grow — often faster than before.

This is why I’m releasing my full Get Google Ready for 2026 video series, breaking down everything you need to prepare your account for the biggest industry shift in years.

And if you want to start optimising correctly right now:

This is the exact system our DDA clients use to scale their accounts through algorithm changes, industry shifts and rising competition.

2026 is going to be a big year — but with the right structure, you’ll be ahead of everyone else.