The State of PPC in 2025

Key Takeaways

• The Rise of Automation and AI in PPC
• Evolving Role of the PPC Manager
• New PPC Trends and Technologies
• Challenges and Opportunities for PPC Advertisers in 2025
• The Evolving Role of Mobile, Ecommerce, and Social Media in PPC
• Major PPC Platforms and Planned Developments

Pay-per-click (PPC) advertising has consistently proven itself as a dynamic and effective digital marketing strategy. As we approach 2025, PPC is poised for a significant transformation, driven by advancements in artificial intelligence (AI), automation, and evolving user behaviours.

This report looks into the key trends and predictions shaping the future of PPC, offering insights for marketers and business owners to stay ahead of the curve.

The Rise of Automation and AI in PPC

One of the most significant trends in PPC for 2025 is the increasing integration of AI and automation. Ad platforms are using artificial intelligence to automate tasks and optimise campaigns, reducing the need for manual adjustments. This shift is driven by the potential for AI to:

• Drive better efficiency: AI can automate time-consuming tasks, allowing advertisers to focus on more strategic initiatives¹.
• Enhance ad personalisation: AI can tailor ads to individual user preferences and contexts, leading to more relevant and engaging experiences¹.
• Provide deeper insights: AI can analyse vast amounts of data to uncover trends, identify opportunities, and provide actionable insights for optimisation¹.
• Target more relevant audiences: AI can identify and target the most receptive audiences, improving conversion rates and maximising ROI¹.

This integration of AI allows advertisers to:

• Improve Targeting: AI can analyse vast amounts of data to identify and target the most receptive audiences, leading to higher conversion rates.
• Optimise Bids in Real-Time: Smart bidding strategies, such as Target CPA and Target ROAS, automatically adjust bids based on the likelihood of conversion, maximising budget efficiency.
• Enhance Ad Copy: AI can generate and test different ad variations to identify the most effective messaging, improving ad quality scores and engagement.
• Get automation and actionable insights where you need it: AI-powered tools can provide valuable insights and automate tasks to improve campaign effectiveness².

The impact of AI on PPC is undeniable. Studies show that brands using AI for PPC have seen a 20-30% increase in ROI due to improved targeting and real-time optimisation. As AI technology continues to evolve, we can expect even greater advancements in its application within PPC, leading to more efficient, personalised, and effective campaigns.

Evolving Role of the PPC Manager

As automation takes over many of the manual tasks in PPC, the role of the PPC manager is evolving. Instead of focusing on tactical execution, PPC managers will need to adopt a more strategic approach, overseeing campaign performance, analysing data-driven insights, and mitigating risks¹. This includes:

• Mastering the fundamentals: Even with the rise of automation, a strong understanding of core PPC principles remains crucial for success.
• Looking beyond Google Ads: PPC professionals need to diversify their skills and explore opportunities on other platforms like Microsoft Ads, Amazon Advertising, and social media advertising.
• Understanding and targeting audiences at the right moment: Analysing user behaviour and tailoring campaigns to specific stages of the customer journey is essential for maximising impact².
• Expanding reach to high-value supply: Identifying and targeting high-value audiences or keywords that are likely to generate the best returns is crucial for optimising ROI².
• Being familiar with the technology: Staying updated on the latest platforms, tools, and technologies is essential for effectively managing campaigns².
• Scaling account control and performance: Managing large accounts efficiently and maintaining performance requires the use of automation and effective tools².
• Developing Campaign Strategies: Creating and refining campaign plans based on performance insights and emerging trends³.
• Analysing Data-Driven Insights: Utilising automated reporting tools to uncover trends, opportunities, and areas for optimisation³.
• Optimising Creative Assets: Enhancing ad copy, visuals, and messaging to drive better engagement and brand consistency³.
• Improving Landing Pages: Ensuring landing pages are aligned with campaign goals and optimised for conversions³.

While automation offers significant benefits, PPC managers will still need to maintain a degree of control over campaigns. This can be achieved by:

• Setting Bid Constraints: Using features like floor and maximum CPCs to guide automated bidding within predefined boundaries³.
• Providing High-Quality Inputs: Ensuring accurate data, well-defined goals, and clear audience segmentation for the algorithm to make informed decisions³.
• Layering Manual Adjustments: Combining automated bidding with manual controls like negative keyword lists or ad scheduling to fine-tune campaign performance³.

This evolving role requires PPC managers to become more strategic, data-driven, and adaptable, embracing automation while maintaining a strong understanding of core PPC principles and exploring opportunities beyond traditional search engine advertising.

New PPC Trends and Technologies

Beyond automation and AI, several other trends and technologies are shaping the future of PPC in 2025:

AI and Automation:

• Keywordless Search: The rise of keywordless search, where platforms rely on AI to understand user intent and match ads to relevant queries, could significantly impact how advertisers structure their campaigns.
• Central Data Hub: Building a central data hub to gather and analyse customer data from various sources can enable more personalised and scalable PPC campaigns.

Audience Targeting and Measurement:

• Attribution and Incrementality: Brands will focus more on understanding the true impact of their PPC campaigns by analysing attribution data and measuring incremental gains.
• First-Party Data and Privacy Compliance: With growing concerns about data privacy, there is a shift towards first-party data for targeting¹. Advertisers will need to prioritise building direct relationships with customers and obtaining consent for data collection¹.

Ad Formats and Creative:

• Voice Search Optimisation: With the rise of voice-activated devices, optimising PPC campaigns for voice search is crucial. By 2025, 50% of searches conducted on voice-activated devices are projected to be voice searches. This requires adapting keyword strategies to include long-tail keywords that mirror natural language and conversational queries.
• Video and Visual PPC Ads: Video content is becoming increasingly important in PPC advertising. Platforms like YouTube, Facebook, and Instagram offer opportunities to reach engaged audiences through various video ad formats. Short, non-skippable bumper ads are particularly effective for brand awareness and delivering concise messages.
• Emphasis on Creative Assets: Visually appealing content is becoming more crucial for success in display and video campaigns¹. Advertisers need to focus on creating high-quality visuals and engaging narratives that capture attention quickly.
• Interactive and Shoppable Ads: Interactive and shoppable ads can enhance user engagement and drive conversions by providing immersive experiences and allowing users to purchase products directly within the ad¹.
• Image Search: Visual search is becoming more prevalent, particularly within Performance Max and Shopping campaigns. Advertisers need to optimise their campaigns for image-based queries by using relevant visuals and product images.

Cross-Platform and Omnichannel:

• Emphasis on Microsoft Ads: While Google Ads remains dominant, Microsoft Ads is gaining traction, especially for B2B advertisers. Microsoft Ads offers lower CPCs due to less competition and provides enhanced targeting options through its integration with LinkedIn.
• Omnichannel Campaigns: Maximising reach requires an omnichannel approach, utilising various platforms like social media, display advertising, and Amazon advertising in addition to search engine ads. This allows advertisers to reach users across different touch points and create a more cohesive customer journey.

Evolving Search Landscape:

• Changing User Interactions: How users interact with search is expected to change in 2025, driven by the rise of voice search, AI-powered search, and conversational queries. This will impact search patterns and require advertisers to adapt their keyword strategies and ad formats accordingly.

These trends highlight the dynamic nature of PPC advertising and the need for advertisers to stay informed, adapt their strategies, and embrace new technologies to remain competitive.

Major PPC Platforms and Planned Developments

Google Ads

Google's roadmap for 2025 includes several key updates to its Ads API:

• Three Major Versions: V19 (February/March 2025), V20 (mid-year), and V21 (Q4 2025)⁵.
• Two Minor Updates: V19_1 and V20_1.
• 12-Month Sunset Window: Each version will have a 12-month sunset window, allowing developers time to transition⁵.

These updates suggest Google will continue its pattern of quarterly updates while providing developers with ample transition time⁵.

Other notable developments in Google Ads include:

• Customer Match Policy Update: Emphasis on user safety and experience, potentially restricting access to Customer Match for ads deemed harmful or disruptive.
• Video Action Campaigns Transition: Video Action Campaigns will be absorbed into Demand Gen campaigns, focusing on upper-funnel marketing objectives⁶.
• Performance Max Enhancements: Improved reporting and insights for Performance Max campaigns to provide greater transparency and control.
• Lifecycle Goals in Bidding: Introduction of lifecycle goals (retention, acquisition) in Google Ads bidding to optimise campaigns for specific customer journey stages.
• Data Privacy Updates: Changes to advanced consent mode and data privacy features to comply with evolving regulations.
• AI in Google Shopping: AI is expected to transform Google Shopping by enhancing product discovery, ad formats, and campaign management.
• Search Themes: Search themes, which provide insights into user interests and search patterns, might be used in campaign types other than Performance Max¹.
• Potential End of Search Terms Reports: Advertisers might lose access to detailed search terms data, impacting their ability to analyse user queries and optimise campaigns².

Microsoft Advertising

While specific details about Microsoft Advertising's roadmap for 2025 are limited, the platform is expected to focus on:

• AI and Machine Learning Integration: Further integration of AI and machine learning into campaign management and optimisation.
• Personalisation and Privacy: Balancing personalised ad experiences with data protection regulations.
• Advanced Targeting: Leveraging LinkedIn profile data for enhanced B2B targeting based on industry, company, and job role.
• Cross-Platform and Omnichannel Strategies: Creating unified experiences across various channels, including Bing, LinkedIn, Windows, and Office.

These updates and features highlight Microsoft Advertising's commitment to innovation and its focus on providing a competitive alternative to Google Ads, particularly for B2B advertisers.

The Evolving Role of Mobile, Ecommerce, and Social Media in PPC

Mobile Advertising

Mobile devices continue to be a primary channel for online activity, making mobile optimisation essential for PPC success in 2025. Advertisers need to ensure campaigns are mobile-friendly, visually engaging, and cater to user behaviour on mobile devices.

Ecommerce Advertising

PPC plays a vital role in ecommerce marketing, and in 2025, we can expect to see:

• AI-Powered Personalisation: Hyper-personalised shopping ad experiences tailored to individual preferences and contexts.
• Visual Search: Integration of visual search capabilities to allow users to find products using images.
• Voice Search Optimisation: Optimising product descriptions and ads for voice-based shopping queries.
• Accurate Conversion Tracking: Setting up accurate conversion tracking on all pixels is crucial for measuring campaign performance and optimising for ROI.
• High Conversion Rates: Continuous optimisation is needed to improve conversion rates and maximise the effectiveness of ecommerce PPC campaigns.
• Excellent Copy and Creatives: Compelling ad copy and visuals can significantly impact user engagement and conversion rates in ecommerce PPC.
• Integration with Product Feeds: Accurate and optimised product feeds are essential to ensure that product information is displayed correctly in shopping ads and other ecommerce PPC formats.
• Google Ads and Google Analytics Integration: Integrating Google Ads with Google Analytics can provide valuable insights into campaign performance, user behavior, and conversion paths for ecommerce PPC.

Social Media Advertising

Social media remains a powerful channel for PPC advertising, offering opportunities to connect with engaged audiences across various platforms8. In 2025, social media advertising will focus on:

• Authentic and Engaging Content: Creating content that aligns with the style and tone of each platform to resonate with users8.
• Cross-Platform Integration: Integrating social media ads with search and display campaigns to reach users throughout their buying journey.
• B2C Approach in B2B: Leveraging consumer-facing platforms like TikTok and Instagram for B2B advertising.

Challenges and Opportunities for PPC Advertisers in 2025

Challenges

• Rising CPCs and Increased Competition: As more businesses leverage PPC, cost-per-click (CPC) rates are rising, making it more challenging to manage budgets and achieve ROI.
• Ad Fatigue: Users are becoming increasingly exposed to online advertising, leading to ad fatigue and reduced engagement.
• Increased Complexity: The PPC landscape is becoming more complex with multiple platforms, ad types, and targeting options to manage.
• "Hidden Features": Platform updates and complex features can lead to unintended spending if not properly understood and managed.
• Data Privacy and Regulations: Advertisers need to navigate evolving data privacy regulations and ensure compliance while maintaining effective targeting. This includes:
• Reviewing website forms and technology: Businesses need to review their data collection practices and ensure compliance with privacy regulations.
• Updating privacy policies: Keeping privacy policies up-to-date is crucial to maintain transparency and user trust.
• Evaluating online pixel technologies: Businesses need to assess the privacy implications of their tracking technologies and comply with relevant guidelines like the HHS Bulletin.
• Staying up-to-date on state-level privacy laws: State-level privacy laws can supersede other regulations and require specific compliance measures.

Opportunities

• AI and Automation: Leveraging AI and automation to streamline campaign management, optimise performance, and reduce manual workload⁸.
• Advanced Targeting: Utilising advanced targeting options to reach specific audience segments with personalised messages⁸.
• Omnichannel Strategies: Expanding reach and maximising impact by adopting omnichannel strategies across various platforms.
• Innovative Ad Formats: Experimenting with new and engaging ad formats to capture user attention and drive conversions.
• Focus on User Experience: Prioritising user experience by creating relevant, non-intrusive ads that provide value.
• AR and VR Technologies: Exploring the potential of AR and VR to create more immersive and interactive ad experiences.

Insights from Industry Experts

Industry experts offer valuable perspectives on the future of PPC in 2025:

• Ameet Khabra (Hop Skip Media): Predicts a continued shift towards automation and centralised campaign management, with an emphasis on predictive technology and chatbots¹.
• Melissa Mackey (Compound Growth Marketing): Believes AI will be integrated into every aspect of PPC, from ad creation to audience targeting¹.
• Kathryn Pearson (The SEO Works): Emphasises the importance of using AI in innovative ways that maintain brand identity while driving results¹.
• Elisabetta Nicoli (Fox Agency): Foresees significant growth in visual search ads, driven by advancements in AI¹.
• Robert Brady (Righteous Marketing): Predicts an increased demand for seasoned PPC experts who can navigate the evolving landscape and ensure data accuracy¹.
• Experts on AI Adoption: While many experts are optimistic about the potential of AI in PPC, some express concerns about the loss of fine controls and the need for careful evaluation of AI-powered tools⁴.

These insights highlight the importance of staying informed about the latest trends and perspectives in PPC, embracing innovation while maintaining a critical and strategic approach to AI adoption.

Conclusion

The state of PPC in 2025 is characterised by rapid advancements in technology, evolving user behaviours, and a growing emphasis on data privacy. AI and automation are transforming campaign management, optimisation, and measurement, while new ad formats and platforms are emerging to provide advertisers with more diverse opportunities to reach their target audiences.

However, this dynamic landscape also presents challenges, including rising costs, increased competition, and the need to navigate complex privacy regulations. To succeed in the future of PPC, advertisers need to:

• Embrace AI and automation strategically: Leverage AI-powered tools to improve efficiency and performance, but maintain human oversight and control over campaign strategies.
• Prioritise user experience: Create relevant, non-intrusive ads that provide value and respect user privacy.
• Adopt an omnichannel approach: Expand reach and maximise impact by integrating campaigns across various platforms and channels.
• Stay informed and adapt: Continuously monitor industry trends, platform updates, and user behaviours to adapt strategies and remain competitive.

By embracing these key takeaways, advertisers can navigate the evolving world of PPC and achieve success in 2025 and beyond.

Works cited

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2. Microsoft Advertising Product Roadmap | PPT - SlideShare, accessed December 20, 2024, https://www.slideshare.net/MSFTAdvertising/microsoft-advertising-product-roadmap

3. How Automation will Reshape the Role of the PPC Manager in 2025, accessed December 20, 2024, https://www.ppchero.com/how-automation-will-reshape-the-role-of-the-ppc-manager-in-2025/

4. PPC Trends Coming In 2025 According To 7 Experts - Search Engine Journal, accessed December 20, 2024, https://www.searchenginejournal.com/ppc-trends-coming-in-2025-according-to-7-experts/529209/

5. Google outlines 2025 ads API roadmap - Search Engine Land, accessed December 20, 2024, https://searchengineland.com/google-outlines-2025-ads-api-roadmap-448484

6. The future of paid search: 3 predictions for Google Ads in 2025, accessed December 20, 2024, https://searchengineland.com/paid-search-predictions-google-ads-2025-449384