AI Max Released
Google announced AI Max to its Ads toolset. This appears to be the next generation of what’s currently Dynamic Search Ads. Google is claiming the tool, Beta set to become available in late May and API in August for most advertisers, will include report settings like locations of interest. Its unclear how this tool can be used in highly regulated industries like legal services or health & medical. One of the major downsides of AI tools like PMax has been the lack of control in messaging & channel appearance as well as more detailed audience targeting.
Speaking Of Max
Max has announced the rebranding of an old brand. HBO’s streaming services is now the brand “HBO Max”. Social media had fun with the rebranding a bit. Was this a clever PR stunt or did agency executives fumble the first rebrand? The streaming app space has become uber-competitive for eyeballs and subscriptions. Perhaps the apps themselves need clever marketing tactics to reach a younger audience and stand out in a more crowded space.
Retailers Reset Budgets After April Tariff Pullback
Based on a recent report from Tinuiti, Amazon has pulled back significantly on shopping spend in the past week. Walmart has pulled back to a lesser degree. Shein has turned the shopping ads back on as of last week. Source: @Tinuiti Ad Data
Both Temu and Shein are not back to the same levels as their peak in February 2025 but perhaps dipping their toes back in the water as they see very high tariffs begin to fade. Apparently this level of Amazon cuts hasn’t been seen since “the early days of the pandemic”. These big swings in large ad budgets are likely to have an impact on the marketplace for ads since they take up such a large % of the platform ad spend vs much smaller competitors.
Google Merchant Data
One way to combat changes to the shopping landscape is to keep any eye on CPCs and look over search trends in Google Merchant Center. Things have been changing so rapidly the past 60 days its really hard for companies to keep pace.
Google AI Mode Pros & Cons
Google released a new tab in Search called “AI Mode“. AI Mode appears to be an expanded version of AI Overviews. Available now in Google Labs, AI Mode could provide a sneak peek into the future of Google Search. Large summaries with supplemental links to other resources. Its unclear how the platform would feature ads.
Digiday is claiming this can have a big negative impact to publishers and SEO consultancies but a big win for advertisers and perhaps niche publishers. Traditional SEO metrics like links and citations could be at risk as these metrics could be less heavily weighted in AI Mode results. Although its unclear how this will make its way into the main Search product in the future. Other AI LLMs like ChatGPT have yet to monetize their free audience with ads so there’s a chance Google may delay a full all-in AI layout layered with ads for many months or a couple years.
Navigating 2025 For DTC Brands
Q1 & Q2 have been challenging for DTC Brands. World event noise has contributed to less engagement, tariff announcements hitting site activity and impacting consumer sentiment, Search Engine AI updates impacting publishers. While most of these are out of your control as a brand manager or CMO, there are timeless strategies that still work. Our May POV takes a look at some tactics to help combat changes to consumer behavior, ad marketplace, and digital marketing channel mix.