- Nov 29, 2022
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Google is once again offering affiliate marketers and PPC specialists not just new challenges, but real opportunities to boost performance. In 2025, the search giant introduced several major updates — expanded placement controls in Demand Gen campaigns, the still-mysterious AI Max suite, and even a new format: ads integrated directly into AI chatbot conversations.
In this article, we’ll break down what these updates mean, how to make the most of them, and how to navigate the learning curve without wasting ad spend.
Granular Placement Control in Demand Gen Campaigns
Until recently, advertisers using Demand Gen campaigns had limited control over where their ads appeared. It was an “all or nothing” approach — but that’s changed. Google now allows marketers to select specific placements: YouTube (including a dedicated option for YouTube Shorts), Discover, and Gmail. Additionally, campaigns can be extended across over 3 million partner sites and apps via the Google Display Network.
While it may seem like a simple UI update, this feature marks a significant shift: advertisers can now tailor their strategies for each platform. Instead of casting a wide net across YouTube, you can target Shorts specifically, crafting short-form, fast-paced creatives akin to TikTok or Instagram Reels.
The benefits are clear:
• More efficient budget allocation by reducing irrelevant impressions
• Greater creative flexibility — static assets for Gmail, motion-based ones for Shorts
• Integration with Google Merchant Center enables rich product info in ads, including local availability, which enhances both online and offline conversions
Initially, some marketers voiced concerns about reporting opacity — metrics for various channels were lumped together. Google responded promptly, and segmented reporting is now available, offering transparency into the performance of each placement.
AI Max: Next-Level Automation or Risky Experiment?
Google presents AI Max not as a new campaign type, but as a collection of advanced features designed to supercharge Search campaigns. Among them:
• Expanded keyword matching
• Dynamic final URL customization
• Real-time adaptation of headlines and descriptions
The system relies less on traditional keyword structures, instead learning from existing creative, landing pages, and past performance to identify untapped, high-potential search queries. Ads evolve in real time — adapting to user intent and sending traffic to the most relevant page based on context.
Early case studies from brands like L’Oréal and MyConnect show strong results, such as a doubling of conversions or 13–31% lower CPA. These examples may come from safer verticals, but they demonstrate potential for affiliates who’ve maxed out their current keyword strategies.
Still, many experienced marketers are cautious. Giving up granular control over creatives and targeting — particularly in highly regulated verticals like finance, crypto, or gaming — can feel risky. The algorithm’s behavior remains partly opaque, and the shift toward “keywordless” targeting raises concerns about traffic quality, especially for lead generation.
While Google claims advertisers will be able to toggle individual AI Max components, these tools still require careful testing and a readiness to pivot when needed.
Advertising in AI Chatbots
In a bold move, Google is starting to integrate AdSense for Search directly into AI chatbot conversations. Sponsored messages now appear within dialogue threads — a reflection of changing user behavior as more people consult chatbots rather than traditional search engines.It’s important to note this feature is limited to websites that have implemented their own AI-powered interfaces and opted into AdSense for conversational formats. This means ads won’t show up in widely-used bots like ChatGPT unless those platforms explicitly opt in. Instead, they’ll appear on partner sites using Google’s conversational tech.
This creates an entirely new ad environment — one where user attention is deeply focused. The challenge is crafting ad content that feels like a natural extension of the conversation, not an interruption. Relevance becomes everything.
Classic metrics like CTR may take a backseat to new engagement-based KPIs. For performance marketers, exploring this space will require fresh resources, new creative strategies, and a willingness to experiment.
The Bottom Line
These updates are not a reason to panic — they’re a call to adapt. Granular controls in Demand Gen offer precision targeting and budget savings. AI Max, while still evolving, presents new paths for scaling. Ads in chatbot interfaces represent a glimpse into the next era of user interaction.As always, affiliate success will depend on one key principle: test aggressively, analyze thoroughly, and adjust continuously. Those who embrace these changes with discipline and creativity will be the ones to unlock the next wave of opportunity.