The news: Google claims its AI-powered ads have increased online sales by up to 80% for some brands, per Modern Retail. Fashion retailer Aritzia saw ad revenues skyrocket after enabling AI Max, Google Ads’ AI-powered optimization tool.
The search giant also says that searches in AI Mode are two-to-three times longer than traditional search—potentially giving Google’s AI tool more context on user intent to surface highly relevant ads. Gemini searches were also significantly longer than traditional search; however, Google noted that it still does not have plans to include ads in Gemini, despite previous speculation.
Zooming out: AI-powered ad tools like AI Max are so far proving effective. Google previously reported that AI Max boosted search campaign conversions by 14%, while its opt-in AI feature Smart Bidding Exploration generated a 19% lift by uncovering high-value query opportunities.
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