Google prioritizes shopping ads over search in ecommerce strategy

AI-powered campaigns and new formats signal Google’s shift toward a Shopping-first SERP.

Illustration by Febrina Tiara

By Alana Salsabila and Widya Putri

Google is transforming its ecommerce advertising landscape as it increasingly prioritizes shopping ads over traditional search campaigns. The move, driven by a surge in artificial intelligence integration and the deployment of powerful tools like Performance Max and AI Max, is reshaping how brands approach pay-per-click (PPC) strategies on the platform.

In recent years, Google has significantly enhanced the visibility and functionality of Shopping ads, investing in AI to automate, optimize, and personalize user experiences. This evolution signals a decisive shift: Google prioritizes shopping ads within its Search Engine Results Pages (SERPs), compelling ecommerce marketers to reevaluate their digital advertising strategies.

The evolution of Google Shopping

The story of Google Shopping began over two decades ago with the launch of Froogle in 2002. This early product search tool evolved into Google Product Search in 2007, and by 2012, it transitioned into a paid-only platform through the introduction of Product Listing Ads (PLAs).

These PLAs marked a turning point in ecommerce advertising, enabling marketers to showcase products with images, prices, and brand information—without relying on keywords. The format transformed how users discovered and interacted with products online.

In 2020, in response to competition and changing user expectations, Google brought back free product listings. This shift allowed merchants to gain organic visibility and consumers to enjoy a more seamless shopping experience within Google Search.

Today, Shopping ads are not only more prominent but are backed by a sophisticated AI-driven infrastructure, highlighting that Google prioritizes shopping ads as its primary ecommerce advertising format.

Performance Max and the automation revolution

A major contributor to this transformation is Google’s rollout of Performance Max campaigns. Designed to run across Search, Display, YouTube, Gmail, and Discover, Performance Max consolidates campaign management into a single, AI-optimized platform.

These campaigns have absorbed many traditional search functions, using machine learning to automate bidding, audience targeting, and creative placement. Ecommerce marketers no longer need to manually manage keyword lists or split budgets across networks—Performance Max does it all in real-time.

Recent updates like the AI Max beta further illustrate Google's push toward AI-centric ad strategies. These tools continue to absorb responsibilities once handled by traditional Search Ads, reinforcing the trend that Google prioritizes shopping ads over older formats.

Google’s SERPs: A shopping-first experience

Visual changes to the SERPs also reflect this shift. Search results for product-related terms, such as “men’s bike helmet” or “soccer balls,” now resemble full-fledged ecommerce storefronts rather than a blend of text ads and organic listings.

At the top of these SERPs, users encounter carousels filled with Shopping Ads featuring multiple rows, pricing filters, and product imagery. In many cases, traditional Search Ads have been pushed below the fold—or eliminated entirely.

This visual transformation underscores Google’s strategy to enhance user engagement and conversion by streamlining the path from search to purchase. And it’s working: advertisers are reporting higher conversion values from Shopping campaigns compared to standard Search Ads.

The impact on advertisers

As Google continues to prioritize Shopping ads, ecommerce marketers must adapt or risk losing competitive ground. Traditional Search campaigns, once the cornerstone of PPC strategy, are receiving less visibility and offering diminishing returns in certain segments.

Key impacts include:

• Reduced control: Keyword-level targeting and bid adjustments are now largely automated.
• Less visibility: Shopping ads dominate above-the-fold real estate.
• Shrinking relevance: For product-based queries, Shopping Ads often outperform text-based Search Ads in both engagement and conversion.

Still, this doesn't mean that Search campaigns are obsolete. They remain valuable for:

• Long-tail searches that Shopping feeds might not address, such as complex or very specific queries.
• Brand protection, ensuring that competitors don't hijack your branded terms.
• Strategic A/B testing of ad copy, landing pages, and creative variations.

Savvy advertisers are integrating both Search and Shopping campaigns into a broader strategy that leverages each format’s strengths while minimizing overlap.

AI reshaping campaign management

The deeper integration of AI in campaign management is arguably the most transformative element of Google’s shift. Performance Max and AI Max utilize predictive modeling to automate everything from bid adjustments to creative selections.

Features like Vision Match allow Google’s algorithms to match users with products based on visual cues and behavioral data, while intent-based matching is gradually replacing keyword targeting in some campaign types.

The net effect is a system that favors automated, AI-managed campaigns—particularly Shopping ads—while reducing advertiser input in granular decisions. For some, this results in greater efficiency. For others, it’s a loss of transparency and control.

Rethinking account structures

The rise of AI-powered campaigns means ecommerce marketers must rethink their account structures. Rather than separating campaigns by network or product type, advertisers should focus on unified strategies where Search, Shopping, Display, and YouTube campaigns complement each other.

A holistic view helps ensure better coverage while minimizing redundancy. For instance, using Performance Max alongside traditional Search can fill visibility gaps and help optimize performance across multiple touchpoints.

Marketers must also prepare for continuous learning and adjustment. As AI evolves, so too will the metrics and strategies that define success in Google Ads. Being flexible and data-driven is more important than ever.

The future of ecommerce on Google

While Google prioritizes shopping ads today, the pace of change suggests even more innovation is on the horizon. With the company continuing to refine SERPs, test new ad formats, and invest in AI research, advertisers can expect further consolidation of shopping and search experiences.

Traditional Search campaigns are unlikely to vanish overnight, but their role in ecommerce will likely continue to decline relative to Shopping formats. Ecommerce brands that proactively adjust their strategies to focus on feed-driven, AI-powered advertising will be better positioned to thrive in this new landscape.

Ultimately, the message is clear: Shopping is no longer just a feature—it is the future of ecommerce on Google. Brands that embrace this shift and invest in optimizing their product feeds, creative assets, and Performance Max strategies will find themselves ahead of the curve.

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