Google Ads Exec Talks AI and Major Developments Coming in 2025

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According to Brendon Kraham, the vice president of global search ads and commerce, Google Ads is gearing up for an AI-led “seismic shift” in how people use the internet. 

In an interview with MediaPost, Kraham recently discussed Google Ads’ plans for 2025 including how it plans to adapt to the growing integration of AI in nearly every facet of technology. 

Why AI Is The Focus In 2025

Kraham says we are in the middle of a transformation in discovering information and interacting with businesses that is even bigger than the mobile revolution. 

As he said:

“We’re in the midst of a massive shift toward AI, and frankly, it’s even bigger than the mobile revolution was. It’s about using AI to fundamentally improve how people search for information and connect with businesses.”

Google has to adapt to this on multiple fronts.

“For users, this means getting better answers to their questions, whether they’re simple or complex. From a business perspective, this AI-powered approach is going to drive a significantly better ROI for advertisers.”

How Kraham Sees 2025

When asked about his predictions for the new year, Kraham lays out three main areas that Google is focused on moving forward.

The evolution of search behavior beyond traditional keywords

“This means moving beyond simple keywords and embracing a multimodal search landscape where visuals, context, and even our surroundings play a crucial role in how we find what we need. For marketers, this means adapting to a more nuanced understanding of consumer behavior, where capturing attention and fostering genuine engagement will be paramount.”

The development of AI-powered creative tools for marketers

“This new era of search and ads means we will witness a surge in marketers embracing AI-powered tools — not to replace their creative spark, but to amplify it. Imagine personalized creative solutions that scale effortlessly, unlocking new avenues for expression and delivering measurable results.”

Integrating enhanced measurement capabilities across all digital channels

“Third, in 2025, measurement will be everything. Marketers will need to get laser-focused on their data, figuring out how to connect the dots as users move between searching, streaming, scrolling, and all those different ways of interacting online.”

Google has already been aggressively pursuing the development of AI tools in every area of its platform. Kraham indicates this is only going to accelerate further in the coming year, with new AI developments coming for Performance Max ads, Demand Gen ads, and Google Search products.

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Google Maps Now Highlights Nearby Products When Searching Local Businesses

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When searching on Google Maps, users will now see highlighted similar or relevant products from nearby stores, the company announced recently. 

As Google put it:

“Now, you can search in Google Maps for items like pickleball rackets, board games, ice cream makers, and more to find nearby stores that have them in stock so you can pick up what you need, stat.”

See It In Action

The feature is now live and can be seen on active search results. Just search for an item name or type of product and see nearby stores selling those items or similar alternatives. 

If you find something you like, you can easily select the item and get directions to pick it up immediately. 

Though the feature is going to be rolled out to more types of products soon, it is currently limited to home goods, electronics, clothing, and grocery items. 

You can see an example below:

How To Get Your Products Highlighted

Google chooses which products to show based on uploaded product and business details from Google Merchant Center. GMC lets you upload your inventory and have it shown on Google Search, Shopping, and now Google Maps. If you want your products to be highlighted to nearby shoppers, now is the time to set up your account and ensure all your product details are accurate and up to date.

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Google Expands Hotel Ads In Search With Travel Feeds

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Google is expanding its Travel Feeds feature for Search Ads, letting hotel ads include more detailed information from their feeds in ads that appear in search results. 

As the company said in an announcement:

“To help potential travelers get the most up-to-date and relevant info, advertisers have told us they want more opportunities to use Travel Feeds in Search Ads. Starting today, all hotel advertisers can now showcase feed data, such as hotels, prices, dates, ratings and images, in this ad format.”

The ad format for hotels now lets advertisers “use the same feed data already available in Hotel Center and used by travel advertisers in hotel campaigns to enhance more ad types.”

The hotel ads automatically pull price and landing pages 

The ads are customizable as well, with multiple design options available and selections based on ad relevance, creative, and query. 

Are These For You?

The new expanded hotel ads have been seen to increase click-through rates by up to 20%, based on Google’s internal data collected during testing. 

The ads also have the potential to increase efficiency when setting up ads by automatically displaying Travel Feeds in Search Ads once you have linked your Hotel Center account to your Google Ads account. 

To be eligible, you must have a Hotel Center account with a price accuracy rating of at least “Poor”.

Though currently limited to hotel ads, Google says it plans to test the Travel Feeds feature with other types of ads including travel attractions, car rentals, and local events.

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Big Changes Are Coming To Google’s Local Service Ads

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Starting next month, Google will begin requiring brands running Local Service Ads (LSAs) to have an accurate, verified, and related Google Business Profile to continue running their ads.

Though LSAs have technically been accessible to any advertisers on Google’s platform, the company has clearly intended them to be linked with Google Business Profiles as part of their local marketing services. This move makes the two more tightly linked, making Business Profiles the “source of truth” for LSAs. 

What Is Happening?

As noted by Ben Fisher on X, Google is alerting people running Local Service Ads about upcoming changes.

In the notice, the company says that it will begin requiring accounts running SA to have a related Google Business Profile to continue running ads. Those without a GBP or those with inaccurate information in their business profile will see their ads paused beginning on this date. 

As Fisher said in his post about the alert:

“Your Google Business Profile is now the source of truth for LSA. LSA ads will be paused if you do not have a GBP attached to an LSA.”

Changes To Local Service Ads Reviews

Also mentioned in the alert is the fact that Google LSAs containing reviews will exclusively show reviews left on Google Business Profiles, making GBP the sole place you can manage reviews seen in local ads. 

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TikTok Officially Introduces Search Ads

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TikTok is taking advantage of its growing popularity as a search engine with Search Ads designed to seamlessly reach users searching for content on the platform. 

As the company announced this week, it is officially launching Search Ads in the U.S.. While the company has let some select brands place ads on its search results in the past, these ads were limited and more generic. The new, widely available, search ads allow for more customization and are designed to fit in organically with other search results delivered by the platform. 

How TikTok Search Ads Compare To Other Search Ads

TikTok’s Search Ads are unique from those offered by other search engines like Bing and Google in a few ways. 

The most obvious difference is that TikTok’s ads allow for videos to be included in the ads, which makes sense given that the app is largely video-centric. 

Additionally, TikTok’s Search Ads are less distinct from other non-paid content on the app which may make some ad-averse users more likely to engage with the advertisements when they may not engage with search ads on other platforms. 

As a new ad format, the goals you set with these ads are more limited. Currently, only Traffic and Web Conversion goals are available to advertisers, though these will likely fulfill the majority of advertisers needs. 

TikTok’s ads are also highly targeted, allowing you to reach your ideal audience based on traits including demographics, behaviors, and interests. 

Who Is Using TikTok Search?

Increasingly, Gen Z and some Millennials are moving away from established search engines like Google and Bing in favor of those that they feel provide more authentic and relevant results. 

Social-based search engines like TikTok are considered more community-driven and deliver products and content more tailored to users’ specific needs and interests, making them more attractive to younger users. 

What About The TikTok Ban?

While the U.S. Government formally passed legislation that would ban TikTok in the U.S. starting in January, the social app is trying to fight back. The company has asked a federal appeals court to overturn the ban, arguing that banning the app could violate the first-amendment rights of users in the U.S. 

So far, a ruling has not been delivered and it is difficult to gauge what direction the judges overseeing the case might be leaning based on their statements in court. However, the justices did seem empathetic to the fact that millions of Americans use the app to express their thoughts and feelings every day.

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Google Ads Improves Customer Data Privacy With “Confidential Matching”

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Google Ads is introducing a new system it calls  “confidential matching” which provides a new way to protect your first-party data and the confidentiality of your clients while still integrating your data into its measurement tools and audience matching systems. 

In the announcement, Google says confidential matching will use “special software and hardware known as Trusted Execution Environments (TEEs), [which will] unlock new ways for businesses to use their first-party data to reach customers and measure the impact of their digital ads campaigns.”

This means that Google will be unable to see any of your uploaded email addresses, phone numbers, or other customer data unless that information is already in Google Ads’ systems. 

The company says this “gives added data security and transparency, by isolating your business information during processing so that no one – including Google – can access the data being processed.”

Rather than just being an option for advertisers, Google is making confidential matching the default for any time data is uploaded to be used for Customer Match, and Ginny Marvin from Google says it will be coming to enhanced conversions and other Google Ads features in the future:

Now when you connect your first party data to Google Ads for Customer Match, and soon for enhanced conversions, it will automatically be processed using confidential matching – no additional work is required on your end.

Confidential matching is powered by a technology called confidential computing, which uses special software, and hardware called a trusted execution environment or TEE (you may recall we mentioned this at GML this year) to securely process data.

Confidential matching can ensure your data remains encrypted and unseen by anyone, including Google.

Advertisers also have the option to encrypt their data themselves and receive proof that their data is processed as intended.

Confidential matching is now available to all customers globally.

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Apple Wants To Charge You To Boost Facebook and Instagram Posts

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Apple is poised to attach a fee when advertisers boost posts on Facebook or Instagram iOS apps, but Meta is offering a loophole.

Apple’s Plans To Charge For Boosted Posts

Starting later this month, Apple will begin handling billing when advertisers use the Facebook or Instagram iOS apps to boost their posts. This isn’t just a change in billing processors though. When Apple handles billing for online transactions, they attach a 30% fee on the total payment (excluding taxes). 

Since the iOS Facebook and Instagram apps often include exclusive features and new features before the Android or desktop versions of the platform, this could potentially mean Apple would be charging advertisers for access to these features.

Additionally, when Apple takes over billing it will change how advertisers pay for boosting posts. Instead of being charged after the boosted post has run, brands using iOS apps will be forced to pay upfront using prepaid funds added to their account. 

Meta Offers A Way Around Apple’s Hurdles and Fees

Thankfully, Facebook and Instagram’s parent company, Meta, has provided a way for advertisers to avoid these changes by ensuring all the features available in their iOS apps are also available in browsers and on desktop devices. 

This means that advertisers can avoid the fees, even when using iOS devices, by boosting their posts through their browser instead of the native app. 

As Meta said in the announcement:

We are required to either comply with Apple’s guidelines, or remove boosted posts from our apps. We do not want to remove the ability to boost posts, as this would hurt small businesses by making the feature less discoverable and potentially deprive them of a valuable way to promote their business.

We are committed to offering businesses flexible and convenient options to help them navigate this change and maximize the results of their ad spend. As part of our efforts to do this, we have invested in alternative ways to boost posts.

Specifically, advertisers can access Facebook.com and Instagram.com on both desktop computers or a mobile web browser to boost their content. When doing this, they will have all the same features as boosting posts from the iOS apps, except now they will avoid the Apple service charge.

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LinkedIn Launches Sponsored Articles For Brands

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LinkedIn is introducing a new feature called Sponsored Articles that allows brands to turn articles they publish on the site into ads that will reach wider audiences.

The goal is to provide a way for users to engage with sponsored content without having to leave the site or interrupt their experience.

Though it is already available to most business accounts, the company said some brands may not have access quite yet. 

As it rolls out, LinkedIn admins for business accounts will start seeing the option to promote their post on eligible content. If selected, brands can also opt to gate their content with a CTA like “Unlock Article”.

While some have suggested the new feature is similar to others on the site, such as lead generation ads, a statement from the company said Sponsored Articles have many unique benefits.

Baptiste Beauvisage, Lead Client Solutions Manager at LinkedIn, highlighted these particular benefits that Sponsored Articles will give brands.

  • “You can use the content you already have on your LinkedIn page.”
  • “Sponsored posts are more viral than a blog article hosted externally.”
  • “You can have all the comments from logged-in members on the article directly.”
  • “There is a better UX.”
  • “You can drive leads without sending users off Linkedin to consult your article.”

Though the feature is currently limited to business accounts, the company is working to bring it to entrepreneurs and others across the site. It is also looking to expand Sponsored Articles with new features and functionalities that may make it more versatile for brands.

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Google’s New Demand Gen Campaigns Use AI To Reach Shifting Audiences

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Google is launching an exciting new ad format called Demand Gen Campaigns which uses the latest AI tools to create highly targeted video and image ads for YouTube, as well as Google’s other platforms. 

The new ad product is designed to motivate advertisers to invest more outside of social media platforms like Facebook and Instagram – Google Ads’ biggest competitors. 

What Are Demand Gen Campaigns?

Demand Gen Campaigns are video ads up to 15 seconds long, primarily intended to run as pre- or mid-roll YouTube placements. However, the company says the ads will show in other places as well, including as image carousels on mobile and bumper ads.. 

Most importantly, Demand Gen includes a suite of creative tools to help deliver messages and ads that are tailored for your audience. 

The ad product also generates “lookalike” audiences filled with potential new customers who match your existing customers. 

As with most Google Ad formats, advertisers can manage a wide range of ad delivery and budget options, allowing you to deliver more clicks, traffic, and conversions. 

Demand Gen Helps Target Shifting Audiences

stats about Demand Gen Campaignss

Google says that Demand Gen Campaigns are intended to help businesses reach consumers during a time when shopping habits are quickly changing.

The company cites recent surveys that show viewers typically split their time on social media between traditional platforms like Facebook and Instagram with others like YouTube. 

Additionally, more than 90% of people said they had watched content from a specific creator or artist across multiple platforms and formats in the past year. 

These ads are designed to help pull users onto YouTube, which Google believes offers a more genuine connection with creators. 

The ads are intended to do this by using visually engaging ads that are highly tailored for specific audiences across the entire Google ecosystem.

Demand Gen Campaigns Will Replace Discovery Ads

Demand Gen ad campaigns started rolling out to advertisers worldwide earlier this week, and will be replacing Google’s current ad option for its Discovery feed. Discovery campaigns will be phased out sometime in early 2024.

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Microsoft Advertising Releases a Free Holiday Guide For Brands

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The holidays are approaching and Microsoft Advertising wants to help your brand prepare before the shopping season arrives.

Microsoft Advertising has released a new free guide called “Your Festive Season Marketing Playbook” which includes all the information you could need to prepare the most efficient and impactful ad strategies for the latest holiday trends and shopping behaviors. 

Below, we will share some highlights to help steer your ad strategies in the coming months.

Start Planning Early

The guide encourages brands to start planning their campaigns and budgets early, to avoid falling behind. Data from past years suggests that shopping for the holiday season may start as early as September, with a notable increase in both traffic and purchases between September and October throughout much of the world. 

October Clicks Matter In November and December

Another sign that holiday shopping begins earlier than expected is the discovery that approximately two-thirds of purchases in November and half of December purchases can be traced back to clicks in October. 

Now is when brands are able to plant the seeds in shoppers’ heads that turn into holiday purchases. Using remarketing, in-market audiences, and automated bidding strategies, you can develop these initial clicks into later sales.

Deal Seeking is Up

According to the guide, American consumers are spending much more time hunting for deals than in the past. Around two-thirds of shoppers are now devoting significantly increased time to looking for coupons, promotions, or other types of deals. Compared to other regions, shoppers in this area spend approximately 33% more time using search to find deals compared to the average shopper around the world. 

Desktop Drives Holiday Sales

According to the data collected from the Microsoft Advertising Network, just 28% of holiday ad clicks are made by mobile devices, which only account for 22% of total retail conversions around the holiday shopping season. 

This suggests that desktop devices are contributing to the bulk of holiday shopping activity despite the major rise in mobile shopping over the past few years. 

For more about these shopping trends, ad strategies, and holiday marketing recommendations, download the Festive Season Marketing Playbook for yourself here.

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