google ads 2026

August 16, 2026

Google Ads Changes in 2026: Why Keywords Alone Aren’t Enough

Google Ads AI updates in 2026 article header, illustrating why keywords alone aren't enough, featuring a man stepping beyond a traditional keyword list into an abstract AI-driven data landscape.

Remember when running Google Ads meant picking the right keywords, writing some copy, and letting it ride? That playbook just expired. Because, well, the Google Ads changes in 2026 are the biggest shake-up the platform has had in years.

AI Max went generally available in April. Dynamic Search Ads (DSA) are being retired and folded into AI Max. Performance Max finally cracked open its black box. If your campaigns are still built around keyword lists alone, you have a problem most small business owners don’t know about yet.

Here’s what changed, why “keywords alone” isn’t enough anymore, and the 4-step playbook to get your account ready

A Quick Crash Course

All of this lives inside Google Ads, the platform you log into to run paid ads. Two of these features (DSA and AI Max) sit inside Search campaigns. The third (PMax) is a separate campaign type that runs ads everywhere.

  • Dynamic Search Ads (DSA): The old way. You hand Google your website and it auto-creates ads from your page content. Set it, mostly forget it. Now being phased out in favor of AI Max.
  • AI Max: The replacement for DSA. Same idea, Google builds your ads from your assets, but now it uses AI to pick better keywords, write smarter copy, and match to more relevant searches. Way more powerful, and it needs a lot more inputs from you.
  • Performance Max (PMax): Google’s “we’ll run ads everywhere for you” campaign type. Search, YouTube, Display, Gmail, Maps, the whole network in one campaign. AI handles bidding and placement. It used to be a total black box. Not anymore.

The practical takeaway: AI Max is the new default for Search campaigns. PMax is a separate option for running ads across all of Google at once. If you advertise on Google, you’ll be using one, the other, or both.

Google Ads is shifting to an AI-first model. DSA is being retired and replaced by AI Max, which handles keyword matching and ad copy generation inside Search campaigns. PMax runs ads across the entire Google network in a single campaign. Most advertisers will end up using one or both.

What Just Changed in Google Ads

A cluster of updates landed between April and May, and these aren’t the usual “Google launches another beta” fluff. They change how your campaigns work.

1. AI Max Hits General Availability (And DSA Is Dead in September)

On April 15, Google announced that AI Max for Search exited beta. The bigger news: Dynamic Search Ads, automatically created assets (ACA), and the campaign-level broad match setting are all being auto-upgraded to AI Max. According to Search Engine Land, hundreds of thousands of advertisers are already on it, and AI Max is now the default when you create a new Search campaign.

Here’s the part you have to get right, because Google changed the timeline in June. There are now two clocks:

  • ACA and campaign-level broad match still auto-upgrade in September 2026. This deadline did not move. If your account leans on either, your nearest deadline is roughly two months out.
  • DSA auto-migration was pushed to February 2027. On June 11, Google delayed the DSA sunset and, in a reversal, reopened the ability to create new DSA campaigns as of June 15. New DSA creation closes again in January 2027, right before the February auto-migration.

Either way, the destination is the same: every one of these campaigns ends up on AI Max. The delay buys DSA users runway, not a reprieve. And it does nothing for ACA or broad match, which still move in September.

Google says AI Max can lift conversions by about 7% when you use the full feature set. One honest caveat: that number isn’t a head-to-head against the old Dynamic Search Ads. It’s the full AI Max suite (search term matching, text customization, and final URL expansion) measured against a stripped-down version of AI Max, for non-retail advertisers. Translation: it can work, but only if you use the tools rather than just flip the switch.

2. Performance Max Finally Has Real Controls

The PMax “trust the algorithm” era is over. Google’s 2026 updates added the controls advertisers have been asking for:

  • Exclude existing customers. Upload your customer list and Google will actually block those people from seeing your ads, instead of treating it as a hint.
  • Block bad search terms. Tell Google directly to skip certain searches. No more emailing support to beg.
  • Target by demographics. Age and gender controls are live.
  • A/B test your ads. Compare versions to see which actually performs.

You can also finally see where your ads showed up. That’s a big deal for anyone quietly burning budget on Search Partner traffic they never asked for.

3. AI Brief Lets You Talk to the Algorithm in English

Google rolled out AI Brief, a Gemini-powered tool that lets you steer AI Max with natural-language guidelines. It’s a way to talk to AI Max in plain English. You tell it things like “never mention prices” or “prioritize health-conscious shoppers,” and it follows the instructions. That’s a real shift away from the keyword-guessing game and praying the algorithm reads your landing page right.

AI Max also expanded to Google Shopping campaigns and travel-specific formats. Both moves tell business owners the same thing: Google wants you giving it more inputs, not fewer.

4. Google Marketing Live Dropped Even More

On May 20, Google held its annual Marketing Live event and unveiled three more shifts you’ll feel within months:

  • New Gemini-powered ad formats for AI Search. Conversational Discovery ads (your ad answers a customer’s specific question with a custom-built response), Highlighted Answers (your ad gets featured when AI Mode lists recommendations, think “best language apps for travel”), AI-powered Shopping ads (Gemini writes a custom explainer for why your product fits the shopper), and Business Agent for Leads (a chatbot inside your ad replaces the static form). To be eligible for any of these, your campaigns have to be on AI Max for Search, AI Max for Shopping, or Performance Max.
  • Ask Advisor. A new AI agent that connects Google Ads, Analytics, and Merchant Center into one chat-driven workflow. Say “find new customers for my hair care products” and it pulls your product data, sets up the campaign, and reports back on what’s working. In beta now, with a broader rollout through 2026.
  • Asset Studio upgrades. Feed it your brand guidelines and website and it generates a full set of ad assets: copy, images, and soon video (via Google’s new Gemini Omni model). Includes one-click A/B testing on what it builds.

What do these Google Ads Changes in 2026 mean for your business? Well, Google isn’t just changing how you buy ads. It’s changing how you build them, manage them, and where they show up. Every announcement reinforced the same gatekeeper rule. AI Max, PMax, and broad match are how you get in. Manual keyword-only campaigns aren’t just behind. They’re locked out of the new placements.

Google Ads AI Max September auto-upgrade timeline infographic, showing the rollout from announcement in August 2026 through smarter targeting in late September.

Why "Keywords Alone" Doesn't Cut It Anymore

Here’s the part most small business owners haven’t caught yet. To get your ads shown inside AI Overviews or AI Mode, your campaigns need to be running AI Max, Performance Max, Shopping, or broad match targeting.

This isn’t our opinion. It’s Google’s own rule: exact-match and phrase-match keywords can still trigger ads above or below an AI Overview, but only broad match and keywordless targeting are eligible to serve within it. AI Overviews fire on complex, conversational, long-tail queries, which is exactly the traffic a rigid exact-match list was never built to catch.

So an exact-match-only account is shut out of the fastest-growing space on the results page, and it won’t get back in without changing how it targets. Keywords still pull their weight. They anchor your core terms and feed Google the intent it needs. But they’re one input in a setup that now runs on audiences, landing pages, and clean conversion data. Sort that out now and you’ll bank months of learning data before most of your competitors have even started.

Strict keyword lists no longer cover the full search landscape. Showing up in AI Overviews and AI Mode requires AI Max, Performance Max, or broad match targeting. Keywords are still relevant, but they are now just one input in a much larger system, not the strategy itself.

The 4-Step Playbook to Update Your Account

Here’s what to do this week:

1. Feed the algorithm better signals. Upload your Customer Match lists. Set first-party audience signals on every Performance Max campaign. The AI is only as good as what you give it. Starving it doesn’t make your account perform better, it just makes Google guess.

2. Layer negatives as guardrails, not gatekeepers. Broad match plus AI Max can burn through budget on irrelevant traffic fast. Use campaign-level negative keywords aggressively. Add brand exclusions on Performance Max and placement exclusions for sketchy Search Partner sites. Negatives are your steering wheel now.

3. Build audience-first, not keyword-first. Map your ideal customer before you map your keywords. Who are they? What lists do you have? What signals tell Google “this is a buyer”? The new system rewards audience clarity far more than keyword density.

4. Migrate on your terms, before Google does it on its. Know which clock applies to you. If you’re running ACA or campaign-level broad match, your auto-upgrade is still September 2026, so move now. If you’re on DSA, you have until February 2027, but the smart play is to use the extra runway to run a side-by-side test against AI Max and capture a clean baseline, not to sit on it. Migrating yourself means you keep your settings and your negative keywords instead of inheriting Google’s defaults.

This is also where a free marketing audit saves you a lot of trial and error. Sometimes the fastest way to know what’s broken is to have someone who lives in Google Ads look at it.

Marketing team reviewing Google Ads performance data ahead of the September 2026 AI Max auto-upgrade deadline, with a checklist to prepare, optimize, and perform.

Bottom Line

The Google Ads changes in 2026 aren’t a tweak. They’re a rebuild. AI Max is the new default, PMax got teeth, and AI Brief is how you’ll steer the algorithm going forward.

Keywords aren’t gone. They’ve been demoted from headliner to opening act. The advertisers winning right now are the ones giving Google more inputs, better guardrails, and cleaner first-party data, not the ones clutching their 2018 keyword spreadsheet.

Want help updating your account before your deadline hits? Our team handles Google Ads management for small businesses every day. We’ll audit your campaigns, set the new controls correctly, and migrate your DSA and broad match setups on your schedule instead of Google’s, without making your accountant cry.

Thanks for reading. Schedule a free demo whenever you’re ready.

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July 11, 2026

How to Optimize Google Ads Demand Gen Campaigns

Optimizing Google Ads Demand Gen Campaigns for Improved KPIs

optimize google ads demand gen

Google Demand Gen ads are AI powered visual ad campaigns. These ads are not like the traditional Search Ads where bid on keywords & intent, they display on platforms like YouTube, YouTube Shorts, Discover, Gmail, Maps, and Google Display Network. Google describes them as a campaign type built to drive engagement and action across these browse/discovery platforms, not just people actively searching on Google Search. (Google Help). Learn how to Optimize Google Ads Deman Gen campaigns for your business to thrive and improve ROI by reading this full article by Momentum Digital. 

Personally, I’ve been using Google Ads for nearly 2 decades, starting out as a business owner in college, back when CPCs were <$1. Here we are 16, years later, and I’ve managed over $20 Million in campaign dollars across thousands of clients. What I’ve noticed is how Google Ads Search Campaigns have become extremely competitive and expensive, so they’re now trying to leverage AI based campaigns and user data across all their Google Platforms, in order to drive more leads for their advertisers, at a similar cost per acquisition. However, it doesnt always seem to work as expected. The CPCs & CPMs are much lower, but the CPA and overall transparency are much worse.

This is a step-by-step guide to Optimize Google Ads Demand Gen Campaigns.

How Demand Gen targeting works?

Demand Gen Ads targets audiences, not keywords.

You can target users using:

  • Your first party data: Website visitors, customer lists, app users, YouTube viewers, purchasers, cart abandoners, etc.
  • Lookalike segments: Demand Gen supports lookalike audiences based on seed lists such as purchasers, site visitors, or YouTube viewers. Google is transitioning lookalikes in 2026 toward more of a “suggestion/signal” model, meaning the seed audience helps guide Google AI rather than acting as a strict audience filter. (Google Help)
  • Custom segments: These can be based on keywords, URLs, and apps related to your ideal audience. For example, a roofing company could use competitor URLs, “roof replacement cost,” “storm damage roof repair,” “best roofing company,” etc. Google’s FAQ recommends 10–15 search keywords for custom segments when using Max Clicks. (Google Help)
  • In-market, affinity, life events, and detailed demographics: Google estimates audiences based on interests, intent, demographics, Google activity, and third-party website behavior. (Google Help)
  • Optimized targeting (AI expansion): This is the big one. Optimized targeting uses your selected audiences or keywords as signals, then Google may go beyond them to find people more likely to convert. Google states that your audience selections are only a starting point. As the campaign learns, it may serve fewer impressions to your original audiences if it finds higher-performing users elsewhere. (Google Help)

You guide the machine, but you do not fully control every impression.

how to use demand gen ad campaigns

What Industries should use Google Ads Deman Generation Campaigns?

Not every type of company or industry should try or use Demand Gen. So if you never start one of these campaigns you wont really need to learn how to optimize a Google Ads Demand Gen campaign. These campaigns are better suited for driving targeted awareness to clicks, and then remarketed to for conversions.

As a former Googler and CEO of Momentum Digital, I recommend Demand Gen campaigns for businesses that need to reach potential customers before they actively search.

They work especially well for ecommerce brands, home service companies, medical and cosmetic practices, real estate professionals, law firms, fitness and wellness brands, education companies, B2B businesses, franchises, and event-based companies.

List of Industries that can benefit:

  • Ecommerce brands – Showcase products visually and drive online sales through YouTube, Gmail, Discover, and Shorts.
  • Home service companies (roofers, remodelers, landscapers, painters, etc.) – Stay top-of-mind before customers are actively searching.
  • Medical & cosmetic practices – Promote elective services like med spas, dental implants, plastic surgery, and weight loss.
  • Real estate agents & home builders – Build awareness and nurture buyers over longer decision cycles.
  • Law firms – Great for practice areas where people research before hiring (estate planning, family law, personal injury).
  • Fitness, wellness & beauty brands – Drive memberships, appointments, and product sales with engaging visual content.
  • Education & online courses – Generate leads from users discovering new learning opportunities.
  • B2B companies – Build brand awareness, generate leads, and remarket to decision-makers.
  • Franchises & multi-location businesses – Increase local awareness and reach new audiences.
  • Event venues, entertainment & hospitality – Promote seasonal offers, events, and bookings.

Demand Gen uses visual ads across YouTube, Shorts, Discover, and Gmail to build awareness, introduce offers, retarget interested audiences, and generate leads or sales. It is most effective for businesses with strong creative assets, clear offers, longer buying cycles, or a need to expand beyond traditional Search campaigns.

How to optimize Demand Gen Targeting

1. Start with stronger first-party data

The best targeting seed is usually:

  • Past purchasers
  • Qualified leads
  • High-value customers
  • Add-to-cart users
  • Checkout abandoners
  • Email list / CRM list
  • Website visitors from high-intent pages
  • YouTube viewers who watched meaningful videos

For ecommerce, use purchaser lists and product viewers. For lead gen, use qualified leads, booked calls, completed forms, and closed customers.

2. Separate prospecting and remarketing

Avoid combining everything into one campaign.

Instead, build separate campaigns:

Campaign 1: Prospecting
Custom segments, lookalikes, in-market audiences, competitor URLs, and interest-based audiences.

Campaign 2: Remarketing
Website visitors, cart abandoners, product viewers, lead form visitors, YouTube engagers, email list, and past customers if relevant.

This makes reporting and budget control much easier.

3. Use better conversion signals

Bad Demand Gen performance often comes from weak conversion goals.

Avoid optimizing only for:

  • Page views
  • Time on site
  • Low-quality form fills
  • Button clicks
  • Newsletter signups, unless that is truly the goal

Better conversion actions:

  • Purchases
  • Qualified leads
  • Booked appointments
  • Quote requests
  • Calls over a certain duration
  • Add to cart / begin checkout for ecommerce
  • Offline imported qualified leads or closed sales

Google recommends conversion-focused bidding like Maximize Conversions or Target CPA when your goal is conversions, because the system relies on conversion data to optimize performance. (Google Help)

4. Build tighter custom segments

For better targeting, build custom segments around actual buyer intent.

Bad custom segment:

  • marketing
  • business
  • services
  • home
  • laptop

Better custom segment examples:

  • “roof replacement cost”
  • “emergency roof repair near me”
  • “gaming laptop RTX 4080”
  • “best laptop for video editing”
  • competitor URLs
  • product category URLs
  • industry blogs/forums/review sites

Think of custom segments as audience intent signals, not exact search keyword targeting.

5. Monitor Demographics and Creative Performance

Demand Gen reporting includes campaign/ad group reporting, top ads, video analytics, conversions, demographics, and other performance views. (Google Help)

Check:

  • Age
  • Gender
  • Household income, where available
  • Devices
  • Locations
  • Top creatives
  • Video performance
  • Ad group performance
  • Audience segment performance
  • Conversion quality by campaign

Then remove or separate obvious weak performers.

Google Ads demand gen guide
Negatives and Exclusions to Reduce Bad Clicks

Demand Gen handles exclusions differently than Search campaigns. And this is important, because you can end of wasting a ton of ad dollars on terrible irrelevant clicks. So here are some key campaign exclusions to be aware of using.

1. Use audience exclusions

Demand Gen allows you to exclude audience segments, including first-party data. (Google Help)

Good exclusions:

  • Existing customers, if you only want new customers
  • Recent converters
  • Employees
  • Job seekers
  • Unqualified lead lists
  • Low-value customer lists
  • Support-only visitors
  • Careers page visitors
  • Current clients
  • People who already purchased, unless upselling

For lead gen, I’d almost always exclude:

  • Existing customers
  • Recent form submissions
  • Careers/job seekers
  • Low-quality lead lists
  • Competitor/internal traffic where possible

2. Use account-level content suitability

For Demand Gen, brand safety and content exclusions are mostly handled at the account-level Content Suitability page. Google says core suitability settings are not available at the campaign level for Demand Gen, and keyword exclusions are available at the account level under Excluded content keywords. (Google Help)

Use this to exclude broad junk themes like:

  • jobs
  • careers
  • free
  • DIY
  • cheap
  • template
  • scam
  • lawsuit
  • complaint
  • used
  • torrent
  • repair manual
  • discount only
  • training
  • course
  • student

But remember: these are content exclusions, not Search-style negative keywords.

3. Use placement exclusions carefully

Google allows account-level placement exclusions, but Demand Gen doesn’t offer the same campaign-level placement controls as traditional Display campaigns.

Instead of manually cleaning up placements, you’ll generally manage brand safety through account-level content suitability settings.

4. Exclude bad locations

Tighten geo settings aggressively.

For local lead gen:

  • Target exact service areas
  • Exclude locations outside service area
  • Watch city/location reports
  • Avoid overly broad state or national targeting unless the business truly serves it

For national ecommerce:

  • Exclude states/regions with poor CPA or low purchase quality
  • Separate high-performing regions into their own campaign if volume supports it

5. Exclude irrelevant demographics

If the data clearly shows certain demographics aren’t converting, consider excluding or separating them.

Examples:

  • Luxury remodeler: maybe exclude younger age groups if they click but never convert
  • B2B SaaS: exclude low-value consumer audiences if irrelevant
  • High-ticket ecommerce: review age, device, income, and location trends before cutting

Don’t overdo this too early. Give the campaign enough data first.

google demand gen ads examples
The Best Demand Gen Setup

I believe every advertiser (industry) should use Google Ads, but in a specific way related to their goals, targeting and budget. For example, search ads might work very well for a local repair company, and display ads may work better for a new product via ecommerce.

So, to Optimize Google Ads Demand Gen campaigns, try this:

  • Build separate campaigns for prospecting and remarketing.
  • Use strong first-party data: purchasers, qualified leads, high-intent visitors.
  • Create tight custom segments using buyer keywords, competitor URLs, product/category URLs, and industry websites.
  • Use Maximize Conversions or Target CPA, not Max Clicks, if lead quality matters.
  • Exclude recent converters, existing customers, job seekers, bad-fit lists, and low-quality lead lists.
  • Add account-level content keyword exclusions for junk traffic themes.
  • Review demographics, locations, devices, audiences, and top ads weekly.
  • Pause weak creative fast, but give targeting and bidding enough learning time. Google recommends waiting at least two weeks, or 50 conversions for new campaigns, before judging optimized targeting performance. (Google Help)

Demand Gen is not about finding perfect keyword intent. It is about giving Google the best audience signals, conversion signals, creative signals, and exclusion guardrails so the algorithm learns who is actually worth paying for.

Need help with Google Demand Gen Ads? Contact us today!

Our expert team knows how to tailor strategies that get your business noticed by the people who matter most, right in your own backyard.

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“My name is Mac and I used to work for Google. Now I help small businesses grow online and rank higher on Google”