How to Reduce Advertising Costs in Google Ads

In 2025, Google Ads undergoes a significant transformation under the influence of artificial intelligence development, automation, and changing user behavior. Among the key trends:

Increased Role of AI: Google Ads actively integrates AI into all aspects of advertising—from automatic creative generation to conversion prediction. For instance, Generative Experience Optimization (GEO) enables the creation of more relevant and personalized ads that adapt to user queries in real-time.
Automation of Bidding and Budgets: Modern smart bidding strategies leverage machine learning to maximize ROI by analyzing thousands of signals in real-time—device, location, time of day, user behavior history.
Visual and Interactive Formats: Ads are becoming more interactive and visually appealing. There is a growing popularity of videos, shopping ads with 3D product models, and integration with YouTube to create a shopping experience directly in the video.
Changing Role of Keywords: The traditional approach to keyword selection is gradually shifting to the background. Google Ads is increasingly focusing on audiences, interests, and user intents rather than just specific queries.

“Techniques once seen as ‘best practices’ no longer work. As Google Ads has evolved, so has the complexity of optimization. The most important strategy — a mindset shift: thinking, testing, and analyzing every method you try.”

Account Structure Optimization: How to Avoid Chaos

Proper account structure is the foundation of effective advertising. In 2025, experts recommend:

Avoidance of Excessive Detailing: Instead of hundreds of small ad groups—grouping by categories, funnel stages, or product types.
Regular Audits: Monthly structure revision, removal of duplicate keywords, and optimization of campaign names for ease of analysis.
Use of Scripts for Monitoring: Automation of identifying inefficient groups and ads through Google Ads Scripts allows quick response to changes in performance.

Advanced Use of Audiences and Targeting

In 2025, targeting becomes even more precise thanks to:

Lookalike and Smart Audiences: Google’s algorithms build audiences similar to your best customers using first-party data and behavioral patterns.
Event-based Remarketing: Targeting based on specific user actions (such as watching a video, adding a product to the cart, subscribing to a newsletter) allows for creating the most relevant ads.
Channel Segmentation: The ability to combine audiences from different platforms (YouTube, Search, Display) for a comprehensive reach of potential customers at all stages of their journey.

Utilizing Performance Max and Demand Gen for Scaling

Performance Max and Demand Gen are key tools for scaling advertising campaigns in 2025:

Performance Max: Covers all Google platforms, automatically distributing the budget and optimizing ads for each user. According to Google, the average conversion increase is 18% while maintaining the budget. It’s important to regularly update creatives, test different goals (e.g., purchases, lead generation) and analyze reports to identify inefficient segments.
Demand Gen: Generates demand for new products by analyzing user behavior in search, YouTube, and Discover. It is especially effective for launching new products, seasonal promotions, and entering new markets.

Practical Tips:

Use automatic audience expansion to discover new segments.
Include video and interactive formats to increase engagement.
Track micro-conversions (e.g., newsletter sign-up, adding a product to the wishlist) for deeper performance analysis.

In-depth Analysis of Search Queries and Keyword Expansion

In 2025, the focus shifts from classic keywords to analyzing user intents:

Search Terms Report: Allows you to identify new growth points, filter out ineffective queries, and expand semantics through long-tail keywords, which often have lower competition and higher conversion rates.
Competitive Analysis: Using PPC spy tools (e.g., SEMrush, SpyFu) to monitor competitors’ keywords and discover new trends in the niche.
Automation of Semantic Expansion: AI tools suggest new keywords based on user behavior analysis and the competitive environment.

“As search evolves, traditional keyword-based targeting will matter less. Instead, audience intent and AI-driven placements will take center stage.”

A/B Testing: How to Find the Ideal Creative and Ad Structure

A/B testing in 2025 reaches a new level:

Testing AI Creatives: Google offers automatic generation of headline, description, and image variations, speeding up the testing process and quickly finding the most effective combinations.
Multivariate Testing: Simultaneous testing of multiple elements (CTA, image, ad format) to find the optimal structure.
AI-powered Analysis: Machine learning systems automatically determine test winners, considering not only CTR but also deeper metrics (conversions, customer LTV).

Practical Case:

A Japanese SaaS company tested video ads with different emotional triggers and achieved an 18% conversion increase compared to classic text ads.

Optimization of Feeds for Google Shopping: Technical Nuances

In 2025, feed optimization is not only about correct attributes but also about:

AI-generated Descriptions: Using AI to create unique, relevant descriptions that enhance product visibility in Google Shopping.
Use of 3D and AR Models: Adding interactive elements to the feed to increase user engagement.
Dynamic Updates of Prices and Availability: Integration with ERP systems for automatic real-time data updates, reducing the risk of ad rejection due to information inconsistencies.

Implementation of Artificial Intelligence and Machine Learning in Google Ads

AI and ML in Google Ads in 2025 include:

Prediction of Seasonal Peaks: AI algorithms analyze historical data, external factors (e.g., weather, economic events), and automatically adjust budgets and bids.
Ad Personalization: Automatic creation of personalized creatives for each user based on their behavior, purchase history, and demographics.
Integration of Third-Party AI Solutions: Using external platforms for creative generation, competitor analysis, and campaign result forecasting.

“Google Ads is doubling down on AI, personalization, and new ad formats in 2025. Brands should focus on providing high-quality inputs—strong branding, clear messaging, and compelling visuals—to ensure AI-generated outputs align with their goals.”

Case Studies and Practical Examples from International Experience

– **Germany, e-commerce**: A fashion retailer implemented Performance Max with deep segmentation, reducing CPA by 22% and increasing sales by 30% in six months. The key success factor was feed optimization and regular creative testing.
– **Spain, fintech**: A bank used automated bidding strategies and event-based remarketing, attracting 40% more loan applications without increasing the budget. Special attention was paid to CRM integration for precise conversion tracking.
– **Japan, SaaS**: Testing emotional video ads in Performance Max resulted in an 18% conversion increase compared to text formats. Additionally, the company used AI for message personalization.

Advanced User Tips: How to Scale Results

Use Google Ads Scripts: For automating routine tasks—from pausing inefficient ads to automatically adjusting bids based on time of day or performance.
Integration with CRM and Big Data: This allows building complex lookalike audiences, tracking offline conversions, and getting a complete picture of the customer journey.
Multichannel Strategies: Combine Google Ads with Facebook Ads, YouTube, email marketing, and even offline activities for maximum reach and increased customer LTV.
Use of First-Party Data: In a post-cookie world, this becomes critically important for accurate targeting and personalization.

The Future of Google Ads: Personalization, Automation, Transparency

Google Ads 2025 is a platform that:

Automates Most Routine Processes: From creative generation to bid and budget optimization.
Becomes Maximally Transparent: New reports allow you to see not just surface metrics but also deep analysis of audiences, conversion paths, and the impact of each campaign element.
Integrates with Other Platforms: Synchronization with YouTube, Google Analytics, Data Studio, and third-party CRM systems ensures a full cycle of analytics and optimization.
Enhances Personalization: Ads adapt to individual users, considering their interests, purchase history, and even current context (such as weather or location).

“Google’s changing ad landscape will reward those who embrace automation, optimize creative strategies, and rethink audience targeting.”

Key Findings for Entrepreneurs, Managers, and Marketers

– Constantly test new strategies, ad formats, and audiences using AI tools to speed up the process.
– Use Performance Max and Demand Gen for scaling and automation, without forgetting manual control and analysis.
– Invest in the quality of your Google Shopping feed, implement AI-generated descriptions, and interactive formats.
– Deploy AI and machine learning for prediction, personalization, and bid optimization.
– Integrate Google Ads with CRM, Big Data, and other channels to build a complete picture of the customer journey.
– Use first-party data for accurate targeting in a world without third-party cookies.
– Don’t forget the human factor: analytics, strategy, and creativity remain key even in the era of complete automation.

Modern optimization of Google Ads in 2025 is a blend of technology, flexibility, and deep expertise. Companies that quickly implement new tools, aren’t afraid to experiment, and continually learn, gain a sustainable competitive advantage in the dynamic digital advertising market.

How to Reduce Advertising Costs in Google Ads Without Decreasing Sales