Vidhya Srinivasan, Google’s Ads and Commerce lead, has outlined the company's ad strategy. Srinivasan said Google is changing how ads and shopping work for advertisers to attract target consumers. "That’s why we're reimagining ads and shopping options as avenues for tailored exploration," she explained.

According to Srinivasan, Google focuses on three key areas: AI, YouTube, and Search capabilities. 

Google’s AI-powered advertising strategy 

Google has been integrating AI into its ad products for years, but Srinivasan said the company is now going all in. She said AI is shaping everything from ad creation to shopping experiences. “In the last year, we've explored new applications of generative AI across our products — from improving image generation to better curating the products people see,” she said. 

The company has introduced AI ad tools and features in the past year. Recently, it added a tool to generate images using text prompts across multiple ad platforms. Google has also enhanced its shopping experience with AI. It added features like AI-powered search and virtual try-ons for clothing. 

Brendon Kraham, Google’s VP of Ads, has previously highlighted how AI automates creative, media, and measurement solutions. Google claims that these AI-driven innovations help businesses create more relevant and interactive content.

But Google isn’t alone in this shift. Meta has been leveraging AI to optimize ad targeting, while Amazon launches AI-powered tool, 'Brand+'. However, Google says it will keep enhancing its AI ad tools. “There’s more we can do. I see vast opportunities to help businesses create relevant, interactive, and beautiful content,” Srinivasan said.

YouTube’s growing role in Google advertising 

YouTube is another part of Google’s ad strategy. With users watching over 1 billion hours of content daily on their TVs, YouTube has outperformed Netflix, Prime Video, and Disney+ in U.S. streaming watch time for two consecutive years.

This could present a huge opportunity for advertisers. Google says online users are 98% more likely to trust recommendations from YouTube creators than from other social platforms.

To capitalize on this, Google has introduced new ad solutions for brands to reach their audience. It rolled out the ‘Promote’ button for Shorts that allows advertisers to launch campaigns without navigating Google Ads’ complex setup. Additionally, starting May 12, 2025, mid-roll ads will be placed at more natural breakpoints to reduce viewer drop-off.

Srinivasan also said Google is developing interactive ad formats, where viewers can interact with products within the ad itself. The company is also investing in brand-creator partnerships through its partnership ads program.

AI-powered search and Google advertising

Search remains a core part of Google’s advertising business and the company is enhancing Search with AI. Srinivasan said AI-powered Search features are “expanding the types of questions users can ask,” which creates new opportunities for businesses to connect with consumers.

The company has integrated Gemini 2.0 into AI Overviews and expanded its availability to more countries. Google Lens has also been upgraded with features like video search and voice command input, while Apple users can now search their screens directly within Chrome and the Google app.

However, Google is facing increasing competition. Microsoft has rolled out Bing’s generative search to all U.S. users, OpenAI has expanded SearchGPT to more countries, and Reddit plans to launch an enhanced search experience this year. Each of these companies is aggressively pushing AI-powered search, challenging Google’s dominance.

Google is also improving its Search ads. Last October, it introduced a feature that displays product information directly on the results page. Reports also suggest that Google is testing an ‘AI Mode’ that could bring conversational AI into Search.

But it seems Google is prepared to remain dominant in Search. The company’s CEO, Sundar Pichai, in December 2024 expressed confidence in AI’s ability to transform Search. “I think you’ll be surprised, even early in ‘25, the kind of newer things Search can do compared to where it is today,” he said.

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