Consumers continue to rely on Google to search for information and shop online, making Google Search Ads marketing one of the most powerful digital advertising platforms. Google’s latest financial data and industry benchmarks clearly support this trend.
Google Search Ad Spend and Click Growth Rise in Q4 2025
Spending on Google Search Ads rose 13% year over year in Q4 2025, up from 10% growth in Q3, according to Tinuiti’s latest benchmark report. Advertiser click growth reached its strongest level since early 2021, signaling renewed momentum in search demand.
At the same time, average cost-per-click (CPC) declined slightly for the second consecutive quarter, helping advertisers generate more traffic without significantly increasing acquisition costs.
Google Shopping Ads See Holiday Boost From Major Retailers
Beyond traditional search advertising, Google Shopping ad spend climbed 16% year over year during the holiday season. Large retailers such as Target and Walmart increased their presence in auctions, driving competitive activity across product listings.
Amazon’s reduced participation in Google Shopping created a noticeable gap in auctions, while brands like Shein and Temu maintained smaller, less prominent ad footprints. Despite higher spending, Shopping ad CPCs remained soft, declining 1% year over year, providing advertisers with cost-efficient opportunities to scale visibility.
Performance Max Continues to Dominate Shopping Campaigns
Performance Max (PMax) campaigns remain a major driver of Shopping performance. In Q4, PMax accounted for 62% of total Google Shopping ad spend and 61% of Shopping sales.
While these figures represent a slight decline compared to last year, they show growth compared to earlier quarters in 2025. Non-shopping inventory, including display and video placements, made up 39% of PMax ad spend, with YouTube video accounting for 13% of non-search impressions. This highlights Google’s continued push toward multi-channel, AI-driven campaign delivery.
Google Text Ads Reach a 19-Quarter High in Click Volume
Google text ad performance also strengthened in Q4. Text ad clicks reached a 19-quarter high, growing 9% year over year. Overall spend increased 11%, while CPC growth remained modest at just 2%.
Brand keyword CPC growth slowed to only 2% year over year, helping advertisers maintain strong branded visibility at stable costs. While click-through rates declined slightly, this was offset by higher impression volumes, a trend likely influenced by the expansion of AI-generated overviews and enhanced search result layouts.
YouTube and Streaming Ads Continue to Gain Momentum
Video advertising remains a major growth channel within Google’s ecosystem. YouTube ad spend increased 13% year over year, driven by a 38% increase in impressions and an 18% decline in CPMs, making video placements more cost-effective for advertisers.
Video now represents 66% of Google Demand Gen campaign spending, reinforcing YouTube’s growing role in upper- and mid-funnel marketing strategies.
Across traditional streaming platforms, Prime Video ad spend surged 31% from Q3 to Q4, surpassing Netflix in CPM rates. While connected TV screens accounted for the majority of streaming ad investment, mobile devices continued to play a critical role in direct-response and performance-focused campaigns.
What This Means for Advertisers in 2026
Google’s search and shopping ads remain incredibly strong, as consumers continue to use Google to search for products and information. At the same time, shifts in retailer participation and increased automation through Performance Max are reshaping how advertisers approach campaign strategy.
For advertisers, success in 2026 will depend on balancing automation with strong creative, smart bidding strategies, and diversified channel investments to maximize performance across the digital advertising landscape.
