Google 2025 Year in Review: PPC Trends Ahead

As the year draws to a close, Google has published its 2025 Year in Review, highlighting product launches, platform upgrades, and new features largely powered by AI. These changes impacted Search, YouTube, Performance Max, Merchant Center, Demand Gen, and more, showing Google’s ongoing push towards automation, data-driven insights, and visual creativity.

Some updates felt like natural progressions of existing tools, while others marked a shift toward a more automated and visually focused ad ecosystem. For PPC professionals, this year’s recap is a useful summary of what shaped paid media in 2025 and what advertisers should consider refining for 2026.

A quick overview of the biggest updates includes expanded Ads in AI Overviews, AI Mode for mid-funnel queries, AI Max for Search, Smart Bidding Exploration with flexible ROAS targets, full placement reporting for PMax, and numerous YouTube and Demand Gen improvements.

YouTube introduced Shoppable CTV, Cultural Moments Sponsorships, new sports lineups, and a creator partnerships hub, while Demand Gen added product feeds, target CPC bidding, campaign-level experiments, and channel controls. Performance Max gained channel-level reporting, asset-level insights, negative keyword lists, and expanded search themes.

Google also improved app campaigns with better iOS measurement, Web-to-App flows, ROAS bidding, and conversion modelling. Merchant Center added brand profiles, AI-powered visuals, loyalty tools, and priority fixes, while Asset Studio introduced Nano Banana Pro for streamlined image and video creation.

These updates show Google’s effort to balance automation with advertiser control, though some areas remain more mature than others. Understanding these changes is crucial for shaping effective PPC strategies in 2026.

Search Updates and AI Integration

Search remained a major focus, especially in discovery and conversational intent. Ads in AI Overviews expanded to desktop and global markets, allowing brands to reach users before they click traditional results. Meanwhile, AI Mode offers structured responses to complex queries, creating new mid-funnel ad opportunities.

AI Max for Search continued to grow, offering creative guidelines, experiments, and text customisation. While AI Max simplifies setup, strategic oversight remains essential to ensure relevance and cost efficiency. Smart Bidding Exploration also showed promise, with flexible ROAS targets delivering notable increases in conversions and reach.

YouTube and Demand Gen Developments

YouTube’s enhancements this year centred on shoppable and live experiences. Shoppable CTV allows viewers to browse products directly on-screen or transfer the experience to mobile devices. Cultural Moments Sponsorships and expanded sports lineups aim to boost brand presence during high-engagement events.

Demand Gen, meanwhile, demonstrated a 26% increase in conversions per dollar due to AI-powered improvements. With channel controls, product feeds, and compatibility with Custom Experiments, the platform is becoming a mature alternative to Discovery campaigns.

Performance Max Transparency

Performance Max finally gained long-awaited reporting and control features. Channel reporting, asset-level insights, negative keyword lists, device targeting, and demographic controls allow PPC managers to understand performance drivers and guide campaigns strategically. PMax is now a framework requiring guidance rather than a purely automated tool.

Creative Focus and Workflow Tools

Creative quality became a key focus in 2025. Asset Studio and Nano Banana Pro streamline ad creation with natural language editing, photorealistic product scenes, multi-product compositions, and bulk image generation. Shareable assets and previews remove friction between creative and media teams, improving collaboration and workflow efficiency.

Google also introduced Ads Advisor and Analytics Advisor, AI-guided assistants for campaign building and troubleshooting, reducing operational burden for marketers managing multiple accounts or frequent experiments.

iOS Measurement Enhancements

Web-to-App acquisition measurement for iOS was expanded, closing gaps left by Apple’s App Tracking Transparency rollout. This allows advertisers to track web campaigns leading to app installs and in-app actions, improving attribution accuracy and enabling smarter bidding strategies for app campaigns.

The update also enables cross-surface optimisation, aligning budgets and creative strategies across Search, YouTube, Shopping, and Performance Max, which is critical for advertisers seeking a unified approach to digital marketing.

Areas for Improvement

Despite progress, some friction remains. Ads in AI Overviews still lack predictability, creative outputs in AI Max can be inconsistent, and Asset Studio visuals vary by product category. Measurement unification between Google and other platforms is also an ongoing challenge. These gaps highlight the need for experimentation and human oversight.

Looking Ahead to 2026

The Year in Review illustrates a platform evolving quickly yet maturing steadily. Automation is now seen as a strategic tool rather than a threat, with PPC teams focusing on data-driven testing, creative optimisation, and strategic use of AI features.

Advertisers who embrace experimentation, maintain creative differentiation, and leverage data insights will be best positioned to capitalise on Google’s evolving ad ecosystem in 2026. The next phase will likely emphasise applying existing tools with discipline, rather than simply exploring new features.

In conclusion, Google’s 2025 updates provide both a roadmap and a challenge. The platform continues to innovate, but success will depend on how effectively advertisers balance AI tools, creative strategy, and performance analysis.

Marketers should consider 2025 a year of laying foundations, while 2026 will be about applying insights strategically to maximise ROI.

Which of Google’s 2025 updates do you think will have the biggest impact on your PPC strategy next year?