Google is making big moves in 2025, and unsurprisingly, AI is at the heart of it all. In a recent update, Vidhya Srinivasan, Google’s VP and GM of Ads and Commerce, outlined the company’s top priorities for the coming year. From AI-powered ad experiences to deeper integrations with YouTube and Google Shopping, these changes signal a clear direction: more automation, more personalization, and a stronger push for immersive ad formats.

Here’s a breakdown of what’s coming, how brands can prepare, and the tools you can use to stay ahead.

Google’s 2025 Ad Priorities

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In Srinivasan’s letter to the industry, she outlined three key priorities for advertisers:

1. AI and personalization
2. YouTube’s engaged audiences
3. New ways to search

Let’s dive into what these mean for advertisers and how you can take action.

AI-Driven Personalization and Shopping Experiences

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AI isn’t just a buzzword for Google—it’s the backbone of its advertising strategy. Srinivasan emphasized that AI will play a larger role in shaping ad creatives, optimizing bidding strategies, and curating shopping experiences tailored to individual users.

With over 1 billion shopping activities happening daily on Google, the company is investing heavily in AI-powered product discovery. Expect to see:

• AI-generated visuals: Automatically created product images and videos that match user preferences.
• Automated ad variations: AI will test different headlines, images, and calls-to-action to find what works best.
• Intent-based targeting: Ads will focus on user intent rather than just keywords.

Practical Example:

Imagine you’re an e-commerce brand selling sneakers. Instead of manually creating 10 different ad variations, Google’s AI tools can automatically generate and test variations of your ad copy, images, and even video formats. For example, one ad might highlight comfort, while another focuses on style—AI will determine which resonates most with your audience.

Tools to Use:

• Google Ads Performance Max: This campaign type uses AI to optimize ad placements across Google’s entire ecosystem.
• Canva: Use Canva’s AI-powered design tools to create high-quality visuals that align with your brand.
• ChatGPT or Jasper: Generate ad copy variations quickly to feed into Google’s AI tools.

YouTube and Search: A Shift to More Visual, Interactive Ads

YouTube is becoming even more central to Google’s ad strategy, especially as younger audiences rely on creators for product recommendations. Google is working to make ads more interactive and non-disruptive, allowing users to explore products without leaving their video experience.

On the search side, Google is expanding AI-powered search capabilities with tools like AI Overviews and Circle to Search, which will change how users find and engage with ads. This means advertisers will need to rethink their strategies beyond just bidding on keywords—visual and interactive ad formats will become key to capturing attention.

Practical Example:

Let’s say you’re a skincare brand. Instead of running a traditional search ad, you could partner with a YouTube creator to showcase your product in a tutorial. Viewers could click directly on the video to explore your product without leaving YouTube. Meanwhile, your search ads could feature 3D product spins, allowing users to see your product from every angle.

Tools to Use:

• YouTube Ads Manager: Create shoppable video ads and track performance.
• Loom or Descript: Easily create short, engaging product videos for YouTube ads.
• Google Merchant Center: Optimize your product feed with detailed descriptions and high-quality images to power AI-driven shopping experiences.

How Advertisers Should Prepare

Staying ahead in PPC in 2025 means adapting to AI-driven changes now. Google’s changing ad landscape will reward those who embrace automation, optimize creative strategies, and rethink audience targeting. Here’s how to get started:

#1: Shift Toward AI-Optimized Creative

With AI taking a bigger role in ad creation, advertisers need to start testing AI-generated assets now. Google’s AI tools will allow for automatic variations of images, headlines, and ad copy, making creative testing more efficient.

Practical Example:

If you’re a furniture retailer, you could upload high-quality images of your products and let Google’s AI create variations that highlight different features (e.g., “Perfect for Small Spaces” vs. “Luxury Comfort for Your Home”).

Tools to Use:

• Google Ads Creative Studio: Test and optimize ad creatives with Google’s AI tools.
• MidJourney or DALL-E: Generate unique visuals for your ads.
• GrammarlyGO: Use AI to refine your ad copy for different tones and audiences.

#2: Rethink Shopping and Video Strategies

E-commerce brands should lean into AI-powered shopping experiences, ensuring their product feeds are optimized with detailed descriptions, high-resolution images, and accurate inventory data. With YouTube becoming an even bigger shopping destination, brands should explore shoppable video ads and creator partnerships to drive engagement.

Practical Example:

If you sell fitness equipment, you could partner with a fitness influencer to create a YouTube video demonstrating your product. The video could include clickable links to purchase directly, while your Google Shopping ads feature 3D spins of your equipment.

Tools to Use:

• Shopify: Integrate your store with Google Merchant Center for seamless ad placements.
• Vidyard: Create professional product demo videos for YouTube ads.
• Google Analytics 4 (GA4): Track how users interact with your shopping ads and videos.

#3: Prepare for a Post-Keyword Ad Landscape

As search evolves, traditional keyword-based targeting will matter less. Instead, audience intent and AI-driven placements will take center stage. Advertisers should start leveraging first-party data, testing Performance Max campaigns, and using Google’s audience insights to reach the right customers in a more predictive, automated way.

Practical Example:

If you’re a travel agency, instead of targeting keywords like “best vacation deals,” you could use Performance Max to target users who have recently searched for flights, watched travel vlogs on YouTube, or browsed hotel reviews.

Tools to Use:

• Google Ads Audience Insights: Understand your audience’s behavior and preferences.
• HubSpot: Manage and leverage first-party data for better targeting.
• Zapier: Automate data syncing between your CRM and Google Ads.

Final Thoughts

Google’s 2025 ad strategy is all about AI, personalization, and immersive ad experiences. Advertisers who rely solely on manual optimizations or traditional search strategies may find themselves falling behind.

Now is the time to:

• Experiment with AI-powered creative tools.
• Embrace new ad formats like shoppable videos and 3D product spins.
• Rethink how to engage audiences in a world where discovery is just as important as search.

The future of advertising is here—are you ready to adapt?