PPC December Industry Update – From the “Power Pair” to the “Power Pack”

As we close out Q4 2025, the biggest takeaway for Google Ads advertisers isn’t just a new feature, but a shift in how Google expects us to build accounts. For a while now, Google had been pushing their “Power Pair” (Search & Performance Max). However, in Q4, the buzz has been all about the AI “Power Pack”. 

 What is the “Power Pack”? 

During Google’s Marketing Live 2025 event, they announced their three-pillared approach to Search: Performance Max, AI Max and Demand Gen. It moves away from the all-roads lead to PMax fears that many marketers had and instead uses these AI-powered campaign types to guide the strategy. 

Harnessing Demand Gen to build interest 

Demand Gen is a visual-first campaign type designed to increase consumer interest and drive conversions across high-impact channels like YouTube, Discover, and Gmail. Using visually rich placements via Demand Gen like YouTube Shorts and Discovery creates brand curiosity before a user even searches. 

It’s clear Google are investing heavily in this product, especially with it being front and centre of their biggest event of the year and have boasted 60+ improvements made to it throughout last year. 

We can now split test creatives using A/B experiments, and Google have been investing in adaptive layouts including layering on Headlines and Descriptions onto the visual elements harnessing AI. Additionally, advertisers are being given more control over the AI elements with Brand Suitability settings to exclude certain placements. 

We are also able to use New Customer Acquisition modes now available on Demand Gen, ensuring that these campaigns have a laser focus on acquiring new customers. 

If your accounts aren’t already using or at least testing Demand Gen campaigns, it’s one to add to your 2026 plans as the focus for performance marketers moves from direct ROAS to full-funnel marketing. 

AI Max suggests a move to more keywordless campaigns 

We’re sure you’ve heard all about AI Max (but if not, where have you been!?) which is set to pave the way for keywordless campaigns. But what does this mean for next year’s strategic planning? This new suite of features promises more conversions and more reach for our existing campaigns. 

AI Max aims to find untapped potential while giving advertisers the control and transparency needed. From initial tests, our clients are still in testing for the feature but we’ve noted a few of the major pitfalls advertisers can fall into to help you avoid them. 

• Monitor heavily in at least the first two weeks and add negatives 

• Start by enabling one setting at time, rather than going all in too quickly 

• Test on campaigns with enough data behind them (it struggles to work on really poor volume campaigns) 

If you’ve not already built a testing roadmap for AI Max, it’s a good one to add to the list. With the rise of AI chatbot usage, we can expect a shift in the way users are searching and shopping and by using products designed to meet the needs of this new way of browsing, advertisers can ensure they are staying ahead of the competition. 

Unlock the black box with more Performance Max reporting 

One thing advertisers have been asking for from Google since PMax initially launched is more visibility of what’s driving the performance and the last few months we’ve finally started to see some of these features come to light. 

We’re now able to see full Channel-level reporting with a detailed breakdown of where exactly Google is spending your budget. These can be used to understand whether Google spending your money in the most efficient way possible to achieve your campaign, and ultimately, business goals! Additionally, if any of your visual channels start to underperform, you’ll know it’s time to refresh your assets. 

More customer acquisition settings in campaigns also unlock additional opportunities within PMax to hone your strategy in on getting the most value out of campaigns. One of the key worries many face is that PMax may only be going after your “easy” customers who would have likely bought anyway, but these features should help to ease this. 

What can we expect for 2026? 

As we look toward 2026, the Google Ads landscape has officially moved beyond the era of “black box” automation into a period of sophisticated AI orchestration. Advertisers should be taking the Google Ads Power Pack into next year’s strategy, understanding how they can leverage these new controls and reporting to take their approach to the next level. Dare we say Google has finally handed back the steering wheel to strategists? If that’s the case, the competitive advantage in 2026 will no longer be found in simply adopting AI, but in how you control it. 

Interested in boosting your online performance even further in 2026? Get in touch with our team!