Google announced new AI-powered advertising and retail features for the 2025 holiday season on September 10, 2025. The updates span Search, YouTube, Merchant Center, and Shopping campaigns, with details published on official Google Ads channels.
Key updates
- AI Max for Search campaigns is now globally available in beta. It delivers a one-click suite of features in advertiser accounts.
- AI Mode is in testing and shows ads alongside AI-powered responses in Search.
- Demand Gen supports optimization for total sales across online, in-app, and in-store channels (Omnichannel offerings).
- Retailers can surface local offers to nearby shoppers via Merchant Center.
- The Creator partnerships hub connects brands with YouTube creators for paid collaborations.
- The YouTube Masthead is now shoppable with product feeds.
- Merchant Center adds AI-driven insights in Google Merchant Center to flag demand shifts. Product Studio gains new creative features.
- New generative tools in Asset Studio are rolling out in the coming weeks. Google said Performance Max and Demand Gen asset generation will use Imagen 4.
- Campaign total budgets now extend to Search, Performance Max, and Shopping. Advertisers can set 3 to 90 day budgets with start and end dates.
- New loyalty features let brands show member pricing and shipping benefits in ads. A retention goal can be set in loyalty mode for Performance Max or Standard Shopping. Google cited Sephora as an early adopter.
Shopper trends shaping the updates
Google said U.S. impulse buys fell from 30% to 26% last year, citing an Ipsos study it commissioned. It describes the holiday season as a three-month period from October through New Year.
Google reported more than 5 trillion searches each year, and said over 60% of shopping queries now show broad intent with conversational phrasing. These trends underpin the Search and YouTube changes.
Why it matters
For the 2025 holidays, Google is leaning on AI for creative production, shoppable video, omnichannel demand capture, and simpler budgeting and loyalty workflows - all aimed at converting high-intent shoppers across Search, YouTube, and retail surfaces.
Source citations
- AI Max for Search campaigns
- AI Mode testing overview
- Demand Gen omnichannel sales optimization
- Local offers in Merchant Center
- Creator partnerships hub
- YouTube Masthead shoppable format
- Merchant Center insights topic page
- Product Studio features
- Asset Studio generative tools
- Campaign total budgets help center
- Retail loyalty features announcement
.svg)
.svg)
.svg)