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Key Trends Shaping Paid Search in the Second Half of 2025
As we move into the second half of 2025, the landscape of paid search is evolving rapidly. While artificial intelligence (AI) continues to be a major topic of discussion, it’s not the only factor influencing the future of pay-per-click (PPC) marketing. Several other trends are shaping the industry, and understanding them can help marketers stay ahead of the curve.
Rising Engagement Costs: A Growing Challenge
One of the most significant challenges facing advertisers in 2025 is the sharp increase in engagement costs. Data from client campaigns indicates that Google Search cost-per-click (CPC) has risen by 45% compared to previous years. This figure is considered relatively modest when compared to increases seen on other platforms.
On LinkedIn, for example, there have been year-over-year increases of 209% in cost-per-mille (CPM) and 147% in CPC. Similarly, Meta has seen a 106% rise in CPM and a 64% increase in CPC. These numbers highlight the growing importance of efficient media management.
To navigate this environment, advertisers should focus on refining their messaging, targeting audiences more effectively, and aligning their funnel strategies. It’s also crucial to review campaign settings to avoid unnecessary spending, such as Google Search Partners or Meta/LinkedIn Audience Extensions.
For those looking to manage budgets more effectively, understanding when to adjust, scale, or optimize based on data is essential. This will be a critical skill for success in 2025.
Google’s New Feature Releases: More Than Just AI
While much of the attention has been on AI, Google has also introduced several valuable non-AI features that are worth noting. These updates aim to improve performance and provide better insights for advertisers.
Some of the notable improvements include enhanced visibility in Performance Max campaigns, device-level targeting, and lowered barriers for incrementality testing. Additionally, the new tag gateway, which relies on server-side tracking, offers more accurate measurement and richer customer insights. These features are critical for improving return on investment (ROI).
Advertisers would benefit from seeing more messaging-level data that helps identify which messages resonate best with users and drive conversions. As Google continues to roll out these features, staying informed about their impact on campaigns will be important.
Privacy and Regulation: A Major Shift in the Industry
Privacy and regulation are becoming increasingly significant factors in the PPC landscape. While cookies remain part of Google’s ecosystem, changes are on the horizon. Although Google has delayed its plan for an opt-in system for third-party cookies, the shift toward a different cookie ecosystem and more transparent data practices is likely.
These changes are influenced by privacy legislation, particularly in the European Union, and are expected to shape global standards. Advertisers must prepare for a more privacy-compliant future by investing in consent management, strengthening first-party data collection, and reducing reliance on third-party data.
Failure to adapt could lead to measurement blind spots and potential regulatory penalties. Smaller retargeting pools and modeled attribution will continue to affect performance marketing, making first-party data strategies even more essential.
Google’s ability to manipulate auction costs to compensate for lost revenue means that shareholders may not face immediate fallout. However, the long-term implications for advertisers remain uncertain.
The Impact of AI on PPC: A New Era
The rollout of Google’s AI Overview ads and AI Mode represents a major shift in the paid search landscape. These features, which are expected to be monetized through ad inventory, signal a move away from traditional search models and into a new AI-driven world.
Early signs suggest that user behavior, performance tracking, and engagement volume may change significantly. While the full impact of these developments is still unclear, marketers are closely monitoring how these new real estate options affect their campaigns.
Understanding how query lengths and user interactions change post-AI Mode will be crucial for adapting strategies moving forward.
What Advertisers Can Control in H2 2025
Despite the many challenges and changes in the market, there are several areas where advertisers can exert control. Macroeconomic forces, rising engagement costs, shifting search real estate, and evolving privacy laws are all factors beyond an advertiser’s influence.
However, there are steps that can be taken to mitigate these challenges:
- Tighten campaigns to eliminate waste and improve efficiency.
- Prepare data and measurement strategies that reduce reliance on cookies.
- Test and adopt new tools that enhance performance.
- Track changes in user behavior and develop creative ways to engage them.
- Ensure knowledge-sharing practices within organizations are up to date.
By focusing on these areas, advertisers can position themselves for success in the dynamic environment of 2025.
