Market Signals #4: AI Moves Deeper Into Advertising Infrastructure
Over the past two weeks, a common theme emerged across the advertising industry: platforms are giving AI greater responsibility for how advertising decisions are made.
Google introduced new AI-powered bidding capabilities for Shopping campaigns, Merchant Center gained new signals designed for conversational search, Google delayed one of its biggest AI campaign migrations, and Cannes Lions showed just how quickly AI is reshaping advertising strategy.
Together, these updates suggest AI is becoming part of the infrastructure behind paid media rather than simply another feature.
Here's what changed, and what it means for performance marketing.
1. Google Ads Adds Maximize Conversion Value Bidding to Standard Shopping Campaigns
Google is rolling out Maximize Conversion Value as a bidding option for Standard Shopping campaigns without requiring advertisers to set a Target ROAS.
Previously, advertisers looking to optimize toward conversion value often had two choices: set a Target ROAS, even when sufficient data wasn't available, or move into Performance Max to access Google's value-based bidding. Many retailers adopted feed-only Performance Max campaigns primarily to unlock this bidding strategy rather than because Performance Max best suited their objectives.
The new option gives advertisers another path. They can now optimize toward conversion value while remaining within a Standard Shopping campaign structure.
Our take: Standard Shopping gains more AI-powered bidding flexibility
This is more than another bidding option.
It removes one of the biggest structural reasons advertisers felt pushed toward Performance Max. Teams that value the transparency and control of Standard Shopping can now combine those advantages with Google's AI-driven value optimization.
It also creates a more practical path for advertisers still building enough conversion data to support reliable Target ROAS bidding. Rather than choosing between manual optimization and full automation, they now have greater flexibility to adopt value-based bidding at the right stage of maturity.
More broadly, it's another sign that Google's AI capabilities are no longer confined to Performance Max. They're gradually becoming standard across its advertising products.
2. Google Merchant Center Introduces Popularity Rank for AI Shopping and AI Search
Google has introduced a new optional Popularity Rank attribute within Merchant Center's conversational attributes.
Merchants can assign products a score from 0 to 100 based on how well they sell relative to the rest of their catalogue. Google says this signal helps AI-powered Shopping experiences and conversational search understand which products should be surfaced when users make broad or open-ended shopping requests.
The attribute can be implemented through supplemental feeds or automated attribute rules without modifying the primary product feed.
Our take: Product feeds are becoming AI recommendation signals
At first glance, this looks like a minor feed update. In reality, it signals an important change in how product information is being used.
Historically, product feeds helped Google understand what a product is. Increasingly, they're helping Google's AI understand which products deserve recommendation.
As AI-powered shopping experiences expand, Merchant Center becomes more than a catalogue management tool. It becomes a way for merchants to communicate commercial priorities directly to Google's recommendation systems.
Product data is no longer just product data. It is becoming positioning data.
For more information on feed management and agentic commerce, listen to our podcast, Growth, Interrupted: Preparing product data for AI-driven and agentic commerce
3. Google Delays AI Max Migration for Dynamic Search Ads
Google has postponed the automatic migration of Dynamic Search Ads (DSA) to AI Max for Search by five months. Advertisers can once again create new DSA campaigns through January 2027, with automatic migration now scheduled for February 2027.
The extended timeline gives advertisers additional time to test AI Max before the transition becomes mandatory.
Our take: Use the extra time to prepare for AI-first Search campaigns
The delay shouldn't be mistaken for a change in direction. Google's long-term strategy remains clear: AI-powered Search campaigns will increasingly replace legacy campaign types.
The additional five months simply acknowledge that advertisers need more time to validate performance, refine migration plans, and compare results across campaign structures.
Teams that use this window to build meaningful benchmarks will enter the transition with confidence. Those that wait until migration becomes automatic will have fewer opportunities to understand how AI Max performs relative to their existing campaigns.
4. Cannes Lions 2026 Shows AI Is Changing Advertising, but Creativity Still Wins
This year's Cannes Lions reflected a noticeable shift in how the industry is thinking about AI.
According to Campaign, around 40% of award submissions incorporated AI in some form, demonstrating how quickly the technology has become embedded across advertising workflows. Yet many of the festival's most celebrated campaigns relied on distinctive creative craft rather than AI itself.
At the same time, creator marketing continued its rapid expansion. According to the IAB, U.S. creator advertising spend reached $37 billion in 2025 and is projected to reach $44 billion in 2026, with nearly half of advertiser buyers now describing creator partnerships as a "must buy."
Our take: AI improves efficiency, but creativity remains the competitive advantage
The conversation around AI is becoming more mature. Instead of asking whether AI belongs in advertising, the industry is beginning to separate where AI creates efficiency from where originality still creates competitive advantage.
AI is increasingly becoming part of campaign production, optimisation, and measurement. Creativity remains the element that differentiates brands once those efficiencies become widely available.
The creator economy reflects a similar evolution. With spending projected to reach $44 billion, creators are no longer an experimental channel. They have become an increasingly important part of modern media planning.
What These Google AI Updates Mean for Performance Marketing
Across all four updates, one direction is becoming increasingly clear.
Google is strengthening the connection between product data, bidding strategies, Shopping campaigns, and AI-powered Search. Rather than launching standalone AI products, it's embedding intelligence directly into the systems advertisers already use every day.
Cannes Lions reinforced a similar message. AI is quickly becoming part of the industry's infrastructure, but strategy, creative thinking, and distinctive brand building remain the areas where businesses can truly differentiate themselves.
For performance marketers, the opportunity lies in using automation with purpose. Better product data, stronger creative, and sound commercial judgment will increasingly determine how much value AI can deliver.
Key Takeaways
· AI is becoming the infrastructure behind paid media. Google's latest updates show AI being embedded into bidding, Shopping, Search, and product management rather than existing as standalone features.
· Standard Shopping campaigns now offer greater AI-powered bidding flexibility. Advertisers can optimise for conversion value without setting a Target ROAS, providing more automation while retaining greater campaign control.
· Product feeds are becoming recommendation signals. Merchant Center's new Popularity Rank helps Google's AI understand which products should be surfaced in AI powered Shopping and conversational search experiences.
· AI-first Search campaigns are becoming inevitable. Google's delayed AI Max migration gives advertisers more time to test and prepare, but its long-term strategy remains focused on AI-driven campaign management.
· AI improves efficiency, but creativity remains the competitive advantage. Cannes Lions 2026 demonstrated that while AI is increasingly embedded across advertising workflows, original ideas and strong creative strategy continue to differentiate brands.
· Successful paid media strategies will combine AI with strong fundamentals. High-quality product data, effective creative, and sound commercial decision-making will increasingly determine how much value advertisers gain from AI.
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Unsure how these AI updates could impact your campaigns? Reach out to us.
Relevant Insights:
· Article: ChatGPT Ads: A Strategic Preparation Guide for Digital Media Leaders
· Article: Personalization in Marketing with GenAI: Data-Driven Strategies for Better Engagement
About Crealytics
Crealytics is an award-winning full-funnel digital marketing agency fueling the profitable growth of over 100 well-known B2C and B2B businesses, including ASOS, The Hut Group, Staples and Urban Outfitters. A global company with an inclusive team of 100+ international employees, we operate from our hubs in Berlin, New York, Chicago, London, and Mumbai.
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