As conversations around AI in hotel marketing grow louder, so do questions about how it’s been leveraged to enhance campaigns and performance.
One question that’s been brought up frequently is: “How are we powering Google Ads campaigns with AI?”
The truth is: we’ve been leveraging AI for years in Google Ads campaigns through bid strategies, audience targeting, campaign types, and a lot of other Google ad settings—The emergence of generative AI platforms like ChatGPT, Perplexity and Google’s own AI Mode continue to change how AI is perceived as well as where it is showcased. There’s nothing wrong with how AI is viewed today, thanks to tools like ChatGPT and Gemini—it’s just applied a bit differently within Google Ads.
Google Ads has been integrating AI and machine learning into campaign strategies long before AI became a buzzword. And with growing interest and evolving tools, it’s more important than ever to understand how this technology works in practice.
In this article, we’ll break down:
- What “AI” means in Google Ads
- What AI components are used in Google Ads to build or optimize campaigns
- What’s on the horizon for Google Ads and AI
At GCommerce, we use AI tools with purpose, leveraging automation where it makes sense, while keeping strategic control in our expert, human hands.
Here’s how it all comes together.
What “AI” means in Google Ads
Before diving in, let’s define AI in the context of paid search.
No, we’re not handing over full control to a “robot” that runs your campaigns end-to-end (though Google does offer options that lean heavily on automation). In practice, AI in Google Ads typically refers to machine learning models running behind the scenes to:
- Predict outcomes, like the likelihood of a conversion
- Optimize ad delivery across channels
- Adjust bids in real time
- Assemble the best-performing creative combinations
If you’re using certain features—like Smart Bidding, broad match, or Performance Max you’re already tapping into AI. But the key isn’t just using AI. It’s using it strategically. These tools work best when paired with the right inputs and oversight so you’re getting smarter performance, not just automation for automation’s sake.
What AI components are used to build & optimize campaigns
AI-powered search campaign types & features we deploy
Several tools and campaign types can strategically be used on Google’s machine learning. Here are some examples where AI is already at work in Google campaigns:
- Performance Max uses AI to target users across Search, Display, YouTube, Gmail, and Discover. You provide the audience signals, keywords, and other data input, and Performance Max takes that data and uses it through machine learning to optimize and target towards the most relevant audiences based on what you’ve provided. Performance Max also allows for you to opt in with automated video asset creations. This works optimally with the best image assets. To learn more about Pmax, view our Pmax best practices guide here.
- Responsive Search Ads (RSAs):
Google’s AI & machine learning dynamically tests and serves combinations of up to 15 headlines and four descriptions that you provide. Google then takes those and makes an exponential number of combinations, serving up variations of ads based on what Google thinks will match best for your users. - Smart bidding strategies:
Algorithms determine the optimal bid for each auction. Strategies like Max Clicks, Maximize Conversions, or Target ROAS use real-time data to automatically adjust bids based on user signals. Common bid strategies include:- Target CPA. Optimizes campaigns at a target cost per acquisition.
- Target ROAS. Optimizes campaigns at a target return on ad spend.
- Maximize Conversions. Optimizes campaigns for producing the most amount of conversions
- Maximize Conversion Value. Optimizes campaigns for producing the most amount of revenue or conversion value.
If you’re familiar with these tools, then you’ve likely been using AI all along—just with less fanfare.
What control do we have over these AI-paid search campaign types & features?
AI in Google Ads isn’t “set-it-and-forget-it.” While automation handles the heavy lifting, we control the inputs that train and guide it:
| AI System | What Google controls | What we control |
| Performance Max | Ad placement, creative combinations, targeting | Creative assets, audience signals, goals |
| RSAs | Ad rotation & matching | Headlines, descriptions, images, CTAs |
| Smart Bidding | Bid adjustments per auction | Strategy selection, goal setting, exclusions |
| Audience Targeting | Predictive modeling | Audience lists, exclusions, remarketing inputs |
AI works best when it’s fed the right information. That’s where we come in, structuring, optimizing, and guiding campaigns to ensure AI works in your favor.
Other AI-enhanced tools we leverage for Paid Search:
- Automatically Created Assets (ACA):
Google’s AI can generate headlines and descriptions (optional; we often override with brand voice). - AI-powered recommendations:
Google’s interface uses AI to suggest optimizations. We selectively apply them when they make sense. - Conversational AI (beta features):
Tools that let us generate ads from landing page content or business descriptions, such as Dynamic Search Ads (DSAs).
What’s on the horizon for Google Ads and AI
As we look ahead, AI is going to play a bigger role in how ads show up in search results, especially with the rollout of Google’s new AI-powered search experience, often referred to as “AI Overviews” or “AI Mode.”
Google is planning on testing ads in AI Mode
Google has confirmed it’s pitching the idea of displaying ads within AI-generated search results. Instead of just showing traditional search ads as a list of blue links, Google is experimenting with blending ads directly into AI Mode-generated responses.
Google is getting ready to roll out AI Mode ads widely (before Q4): AI-curated search results with ads woven into the experience.
What will ads in Google AI Mode look like?
From what we’ve seen and heard so far, this is what ads in AI mode will look like:
- Ads will still be text-based, much like current search ads. The format is likely to remain simple for now—more like standard ads than conversational answers. Here is a visual that Google has provided (image credit to theverge.com):
What about advertiser control for how ads appear in AI Mode?
At this stage, there’s still a lot we don’t know:
- It’s unclear how much control advertisers will have over how or where their ads appear in AI answers.
- Google has not yet shared whether we’ll have visibility into performance, specifically within AI results.
We’ll be watching this closely to understand where optimization and strategy can still play a role.
What do we know so far?
To be eligible for these new ad placements, advertisers must already be using one or more of these tools, which include:
- Broad Match Keywords (on Search campaigns)
- AI Max for Search (currently in beta)
- Performance Max
In short, the more AI-driven your campaigns are now, the more likely your ads will be eligible to appear in Google’s AI Mode and search experiences as it continues to roll out.
Staying ahead of what’s next for AI in Paid Search
While much of this is still evolving, one thing is clear: Google is reshaping how search results and ads work together—and AI is at the center of it. At GCommerce, we’ll continue to test, adapt, and share what we learn to make sure your hotel campaigns stay ahead of the curve.
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