As we move through 2025, Google Ads is using more Artificial Intelligence (AI) than ever before. To stay ahead of the competition, you need to try new ad formats that use smart technology to find customers across the web.
Here are the three campaign types every marketer should be testing right now.
1. Performance Max (PMax) Campaigns
What is it? Performance Max is a type of campaign that shows your ads across all of Google’s channels—Search, Maps, YouTube, Gmail, and more—from a single place. In April 2025, Google added new controls, including better reporting and tools to help you keep existing customers (retention bidding). You can learn more about these updates at Google Help.
Why use it?
Complete Coverage: Your ads appear wherever your customers are, whether they are watching videos or reading emails.
Smart Optimization: The system automatically tests your headlines, images, and audiences to find the combination that gets the most sales.
Better Reporting: New reports show you exactly which channels (like YouTube vs. Search) are working best.
Quick Tip: Provide high-quality images and videos. Set clear goals (like “get new customers”), and check your reports weekly to spend your budget wisely.
2. Demand Gen Campaigns
What changed? In mid-2025, Google combined its old “Discovery” and “Video Action” campaigns into a new type called Demand Gen. This is now the main way to show image and video ads on YouTube, Discover, and Gmail Demand Gen.
Why use it?
Visual Storytelling: It uses eye-catching images and videos to grab attention while people are scrolling through their feeds.
Simple Management: You use one budget to reach people across multiple apps.
Smart Targeting: It finds people who are interested in products like yours before they even search for them.
Quick Tip: Use photos and videos that look like “lifestyle” content to create an emotional connection. Use customer lists to find similar people, and let the system automatically show your best ads.
3. AI-Powered Search Campaigns
What is changing? Google Search now uses AI to generate summaries and answers directly on the results page. This is called the Search Generative Experience (SGE). Ads now appear inside these AI summaries and “AI Mode” tabs.
Why use it?
Be First: Show up in AI summaries before your competitors do.
Conversational Ads: Write headlines that sound natural and answer questions, fitting in with the AI’s style.
Stand Out: Use images and extra links to make your ad pop next to the AI-generated answers.
Quick Tip: Use “Broad Match” keywords with Smart Bidding to catch new search terms. You can also experiment with tools that auto-generate your ad text and images, which has been shown to boost sales by around 27% conversion lifts of around 27%.
Conclusion
The future of Google Ads is here. Instead of sticking to old methods, try these modern formats:
Performance Max for total automation.
Demand Gen for visual ads on YouTube and Gmail.
AI-Powered Search to stay visible in the new search results.
Test these out, let the AI help you, and watch your campaigns grow in 2025.