New Technologies Drive Performance While Reducing Manual Work
Businesses are grappling with rapidly evolving Google advertising technologies as the tech giant doubles down on artificial intelligence-powered campaign management. Recent updates to Performance Max and Smart Bidding represent what Google calls its biggest changes to automated advertising in over a decade.
The shift affects how companies reach customers, with AI now handling everything from bid adjustments to ad placement across Google’s entire network including Search, YouTube, Gmail and Maps.
Performance Max Gains New Controls
Performance Max campaigns, which automate advertising across all Google platforms simultaneously, received significant updates this year that address long-standing advertiser concerns about lack of control.
Campaign-level negative keywords, which allow you to exclude specific queries you don’t want to show ads on for brand suitability or other reasons, are now rolling out to all advertisers after months in beta testing.
The campaigns also gained new customer acquisition tools designed to help businesses identify and target high-value prospects. You can specify your high-value customers and the long-term value they represent through Customer Match. Google AI will use your data to predict which new users are likely to maximize lifetime value for your business and bid more for them.
Enhanced reporting capabilities now allow businesses to break down performance by device, time period and other metrics. Asset group performance data can be downloaded for analysis outside Google’s interface, addressing feedback from marketers who needed more granular insights.
AI Max Expands Search Reach
Google’s newest feature, AI Max for Search campaigns, represents a fundamental shift in how businesses approach keyword targeting. The system moves beyond traditional exact-match keywords to capture what Google calls “net-new queries” that advertisers might never have considered.
MyConnect, an Australia-based utility connection service company, was already using AI-powered Search features like target ROAS bidding and broad match. Still, they were able to build on this to drive 16% more leads at a 13% lower cost-per-action by turning on AI Max in their Search campaigns. Notably, they saw a 30% increase in conversions specifically from net-new queries.
The technology includes new precision controls that replace traditional keyword management. Location-based targeting helps businesses reach customers based on geographical intent, while brand controls let advertisers specify which brands they want associated with their ads or which ones to avoid.
Smart Bidding Exploration Launched
Google’s latest bidding innovation, Smart Bidding Exploration, launched this week with what the company describes as flexible return on ad spend targets. The system can now bid on searches that might not meet standard performance thresholds but show potential for future conversions.
Campaigns using Smart Bidding Exploration see, on average, an 18% increase in unique search query categories with conversions and a 19% increase in conversions, according to internal Google data from March through April.
The feature builds on AI Max capabilities by pursuing high-performing searches across broader categories. For example, a mortgage lender traditionally bidding on “mortgage rates” could now capture traffic from exploratory searches like “how to buy a home.”
Industry Adoption Accelerates
As of 2022, Smart Bidding had a market share in excess of 80% – in 2025, it’s likely upwards of 90%, reflecting rapid adoption of automated bidding strategies across the advertising industry.
The technology shift has created challenges for businesses accustomed to manual campaign management. Cost-per-click, once a primary control lever, has become what one industry analysis calls “merely an observation metric” as AI handles bid optimization.
Performance Max campaigns have gained particular traction among e-commerce businesses, with adoption rates climbing as Google addresses early criticisms about limited transparency and control options.
Implementation Considerations
Business owners considering these AI-powered campaigns should understand the technology requires Smart Bidding strategies that optimize for conversions or conversion value rather than manual bid control.
The systems work best when provided with quality first-party data, audience signals and clear conversion tracking. Companies need robust measurement frameworks to evaluate performance as traditional metrics like keyword-level reporting become less relevant.
Early testing periods may show fluctuating performance as AI algorithms learn business patterns and customer behaviors. Google recommends starting with “Maximize Conversions” settings for new accounts before transitioning to target cost-per-acquisition or return on ad spend goals.
