At Google Marketing Live 2025, Google once again proved it’s allergic to standing still. The big reveal was the Power Pack, a group of three AI-driven campaign types that mark the next stage in automated advertising. Together, Performance Max, AI Max for Search, and Demand Gen are designed to help advertisers get better results across Search, YouTube, and other platforms, with AI taking on more of the decision-making behind the scenes.

These updates will roll out gradually over the next several months. If you run Google Ads, expect to see your campaigns shift and change through the end of September as Google launches new features and phases out old ones.

Performance Max: Smarter Automation, More Transparency

At TBG, Performance Max is our go-to campaign type. It’s the dependable workhorse of Google Ads, great for conversions, lead generation, and multi-channel reach. Think of it as Google’s version of “set it and forget it,” except forgetting it is a terrible idea.

Performance Max already uses AI to find new customers and decide where your ads should appear across Search, YouTube, Display, Gmail, and more. The latest updates are designed to make campaigns easier to understand and control.

• Channel-level performance reports: You can now see which platforms, like YouTube or Search, are actually driving results.
• Search term visibility: Soon, you’ll be able to see exactly which search queries triggered your ads. It only took a decade to get here.
• New customer filters: You can exclude people who already know your brand, visit your site, or watch your videos so your budget focuses on attracting fresh leads.

In short, more visibility, fewer mysteries, and a better understanding of where your money is going.

AI Max for Search: Smarter Targeting with Less Manual Work

AI Max for Search is taking over where traditional Search campaigns left off. We don’t run many of these for clients since they tend to be pricier, but the new version has promise.

AI Max expands your reach to new, relevant searches that you might never have targeted manually. Instead of relying on a long list of keywords, you can focus on your strategy while Google’s AI tests and optimizes quietly in the background. You still control your budget, creative, and audience, but now you have a virtual assistant who never sleeps and actually learns from its mistakes.

Demand Gen: Ads for a More Visual World

Demand Gen is replacing Video Action Campaigns, also known as VACs. This campaign type focuses on brand awareness, product discovery, and highly visual ads. Video campaigns have always been cost-effective, so most of our clients already have at least one running. Google is upgrading these to Demand Gen between now and September, with many accounts already transitioned.

Demand Gen campaigns run across YouTube, Shorts, Discover, Gmail, and the Display Network, making them perfect for brands that rely on visuals to grab attention early in the customer journey. Google reports that advertisers using Demand Gen have seen about a 26 percent increase in conversions per dollar spent compared to last year. A new update will also let businesses reach users on Google Maps through promoted pins, helping drive local traffic and in-store sales.

The Future of Search Ads: AI in the Results Themselves

Google is also changing how ads appear in search results. Ads are now being tested inside AI Overviews and AI Mode, two new experiences powered by generative AI.

This means your ads might show up directly inside Google’s AI-generated answers, not just beside them. The goal is to help users move more naturally from searching to acting. Whether that feels like innovation or a mild invasion of privacy probably depends on the day.

What Marketers Should Do Next

Before you stress about AI taking over, take a breath. The fundamentals of good marketing still apply.

Keep focusing on what’s always worked:

• Create high-quality content that’s actually useful.
• Maintain fast, easy-to-navigate websites.
• Be transparent and compliant in how you present your business.

AI can do a lot, but it can’t fake authenticity. The human touch still wins.

Questions?

Not sure what to make of all this? Reach out. Our resident Google Ads expert, PJ, can help you make sense of these updates and figure out what they mean for your business. We’ll walk you through it before Google changes it all again next quarter. Just kidding. Maybe.