Did you know Google’s AI Push Reshapes Advertising Landscape as Performance Max Gains Retail Dominance

 

Google’s search spending has grown 10% YoY during the final quarter of 2024. This was published in the latest report from Tinuiti which also mentioned how disruptions in AI didn’t impact the steady rise.

The report also shared how advertisers are now more willing to pay for clicks after the growing influence of AI on Google such as AI Overviews and Performance Max. Other stats worth mentioning include click growth remaining unchanged at 3% and Cost per Click rising by 7%. Meanwhile, search ad spending for Microsoft saw a 7% rise with its Cost per Click rising by up to 11%.

 Glancing over the bigger picture, Performance Max remains at the forefront of Google’s shopping ad landscape. Today, more than 95% of all retailers ended up incorporating this format by 2024 end. It’s also responsible for producing up to 67% of Google’s advertising shopping revenue for them.

These stats are proof of Google’s push into the world of automation and a mix of results. Its performance max stats keep getting better in comparison to other standard campaigns for shopping. But we can see how the rollout for AI Overviews could impact CTR for text-based ads before getting back to their original figure in the final quarter.

Looking at the stats of other similar competitors, Amazon continued to go strong in Google’s shopping auction. Meanwhile, Chinese online giant Temu did restrict the presence of shopping ads, limiting it to a minimal share of impressions.

Google continues to focus more on AI-based advertising options but while doing that, advertisers need to keep the balance between rising costs with better performance metrics. This must be done while taking on the more innovative automated formats.