Google’s AI-Powered Ads Are Changing Marketing Forever | Image Source: www.retailtouchpoints.com
March 9, 2025 - Google doubles artificial intelligence in its advertising ecosystem, making radical changes that redefine how brands reach consumers. According to Vidhya Srinivasan, vice-president of Google and general manager of ads and commerce, AI will play a crucial role in personalizing ads, research experiences and YouTube integration. These updates indicate a future where automation, immersive content and the predictive objective take the central stage.
What are Google 2025 advertising priorities?
In a recent letter from the industry, Srinivasan described Google’s main areas of interest in advertising in 2025. These include:
- AI-powered personalization: Ads will be more tailored to individual users based on browsing habits, intent, and real-time interactions.
- YouTube’s growing influence: With more users relying on video content for product research, Google aims to make ads on YouTube more interactive and seamless.
- New search experiences: AI-driven search tools like “Circle to Search” and “AI Overviews” will reshape how users find and engage with products.
These changes are part of Google’s broader mission to make digital marketing more intuitive and less disruptive. But what does that mean for brands?
Yes. Powered Advertising: How will they work?
The Google AI strategy is designed to simplify the creation of ads and improve target accuracy. As for Srinivasan, AI will take on several aspects of advertising, including:
- Automated ad variations: Google’s AI will generate multiple versions of ad copy and images to test what resonates best with users.
- AI-driven product discovery: Instead of relying solely on keywords, Google will use machine learning to match users with relevant products based on browsing behavior.
- Immersive shopping experiences: Features like 3D product views and AI-powered recommendations will enhance Google Shopping.
This evolution means that companies need to rethink their digital marketing strategies to remain competitive.
How does YouTube change the advertising landscape?
YouTube is becoming an important player in Google’s advertising ecosystem. Younger audiences in particular become content creators for product recommendations, and Google takes note. According to Srinivasan, YouTube ads will be more interactive, allowing users to explore products without interrupting their viewing experience.
Some planned changes include:
- Shoppable video ads: Viewers can browse and purchase products directly from video content.
- AI-enhanced targeting: Ads will be dynamically adjusted based on user engagement and watch history.
- Less intrusive formats: Ads will integrate more naturally into video content, reducing disruption.
With these developments, advertisers will have to change their approach to traditional advertising for attractive and content-based marketing.
What does this mean for advertising?
The Google search engine is still undergoing one of its greatest transformations. AI-based research functions such as Circle to Search and AI Overviews are designed to provide users with faster and more relevant responses. For advertisers, this means that advertising strategies based on traditional keywords can be less effective.
Google focuses on:
- Intent-based targeting: Ads will be shown based on user behavior rather than exact search terms.
- Enhanced visual search: Users can find products through images and interactive elements rather than text-based queries.
- Conversational search results: AI-generated summaries will present product options directly within search results.
For businesses, this means optimising AI-based research rather than mere keywords.
How can advertisers adapt to Google’s A- Driven changes?
To make progress in the evolution of the digital landscape, brands must rethink their marketing strategies. Here are three ways to adapt advertisers:
1. Embrace AI-Optimized Creative
With AI taking control of advertising creation, companies should focus on providing high-quality inputs. This means using strong, convincing and professional visual messages to guide AI-generated content.
2. Rethink Shopping and Video Strategies
Retailers should give priority to AI-based business experiences. This includes:
- Optimizing product feeds with detailed descriptions and high-quality images.
- Leveraging YouTube’s new interactive ad formats.
- Partnering with influencers for authentic product recommendations.
3. Prepare for a Post-Keyword Ad Landscape
The traditional purpose of the keyword becomes obsolete. Rather, the marks must:
- Use first-party data to understand customer intent.
- Invest in Performance Max campaigns, which use AI to optimize placements.
- Leverage audience insights to refine targeting strategies.
Consumer Expectations: The need for customisation
According to a recent Klaviyo survey, 74% of consumers expect brands to offer highly personalized business experiences in 2025. However, only 34% reported having had such experience in the past six months.
The study also revealed that:
- 79% of consumers are loyal to only five brands or fewer.
- 41% are loyal to just one or two brands, making personalization critical.
- 77% feel more valued when brands tailor their customer journey.
These statistics highlight a significant gap between consumer expectations and brand implementation. To succeed, companies must go beyond basic segmentation and create truly individualized experiences.
What role does price play in consumer decisions?
Personalisation is not the only factor influencing consumer behaviour. Price remains crucial. Klaviyo’s investigation revealed that:
- Price comparison is the top factor when choosing a brand (36%).
- Finding a better price elsewhere is the number one reason for cart abandonment.
- Exclusive discounts encourage 43% of consumers to sign up with a brand.
Trademarks that want to retain their customers must find the right balance between customization and competitive prices.
As Google remodels digital advertising with AI, brands that embrace these changes will thrive, while those that resist can fight to follow with it.
