Google Search trends you can’t ignore in Retail PPC advertising

Constantly grappling with diminishing returns or inexplicable performance dips in your Google Ads campaigns? For retail advertisers, the Google Ads landscape feels like a high-stakes game where the rules are constantly changing. The relentless pace of Google’s updates, the strategic moves of your competitors, and the broader economic currents create a dynamic environment that can feel overwhelming. It’s like trying to navigate a dense fog – you know opportunities and threats are out there, but without clear visibility, you’re left guessing.

The pressure? It’s real. With Google’s increasing reliance on AI and automation, think Performance Max, Smart Bidding, AI Max generative AI for creatives, and an intensified focus on first-party data and privacy, the black box of Google Ads often feels less like a tool and more like an unpredictable beast. 

This guide is your compass. It will equip you with the insights and tools to cut through the uncertainty, transform reactive guesswork into proactive strategy, and not just survive, but thrive amidst these challenges. 

We speak to retailers daily who frequently express anxieties that stem from:

The “Black Box” of Google Ads:

“We’re putting huge budgets into PMax, but we have no idea where our ads are really showing or why Google’s AI is making certain decisions.” 

This highlights the frustration with opaque campaign performance, leading to a feeling of limited control and wasted spend.

Constant SERP changes:

“Just when we’ve mastered one Google Ads update, another one rolls out that changes everything!”

The relentless stream of new features, policy changes, and AI integrations (like AI Overviews) makes it incredibly difficult to stay informed, let alone adapt strategies quickly enough.

Intense competitive pressure and inflating costs:

“It feels like everyone’s bidding on the same keywords, driving our CPCs through the roof.”

Retail is inherently competitive, and the struggle to maintain visibility and profitability without overspending creates constant tension.

Lack of actionable competitive insights for both shopping and text ads:
“We’re flying blind when it comes to what our competitors are doing – their prices points, discounts, promotions, winning ad copy, their new product pushes, or how they’re adapting to market shifts.”

This emphasizes the critical need for external market intelligence beyond their own account data.

Economic and industry volatility:

“Consumer spending habits are changing rapidly due to inflation, and supply chain issues are messing with our product availability and pricing.”

External economic factors create unpredictable shifts in demand and profitability, making it hard to justify consistent ad spend without clear market signals.

Measurement and attribution headaches:

“Are we truly tracking conversions accurately across all our channels, especially with privacy changes?”

The evolving landscape of data privacy (uncertainty around third-party cookies, first-party data emphasis) makes robust measurement and understanding true ROI increasingly complex.

As we have established,Google Ads is continuously evolving, with a strong emphasis on Artificial Intelligence (AI) and automation. Mastering these trends, despite their opacity, is non-negotiable for retail success.

The AI-first imperative (Performance Max, Smart Bidding, AI Max and Generative AI):

Google is pushing deeper into AI-driven automation. PMax is designed to find conversions across all Google channels. Smart Bidding leverages machine learning to optimize for your goals. AI Max helps to simplify campaign management, improve ad relevance, and drive better performance. Generative AI is increasingly used for creative asset generation. While powerful, their “black box” nature demands external intelligence to validate performance and inform human oversight.

Read our blog: The smarter way to optimize Performance Max campaigns

Google’s AIOs and the shifting SERP:

AI Overviews are fundamentally reshaping how users interact with search results, often placing concise answers and product summaries above traditional ads. For retail, this means a critical need to understand how your products or categories appear within AIOs, how to optimize for this visibility, and how to maintain ad prominence when organic and paid results are pushed further down the page.

Learn more in our blog: How Google’s AI Overviews are changing the game for PPC and Google Ads

The Amazon factor and retail media networks:

Amazon’s growing presence within Google’s search results introduces a formidable competitor directly within Google’s ecosystem. Additionally, the rise of other retail media networks means advertisers need a holistic view of competitive spending across all relevant platforms, not just Google. 

Learn more in our blog: Amazon’s Google Shopping Impression Share drops 50% since May

First-party data and privacy-centric measurement:

With uncertainty surrounding third-party cookies and heightened privacy regulations, the reliance on robust first-party data strategies is paramount. Accurate conversion tracking and effective audience segmentation are increasingly challenging, making it harder to feed Google’s AI with the signals it needs for optimal performance without external validation.

Beyond Google’s direct updates, wider market dynamics significantly influence your retail Google Ads performance:

Economic headwinds and consumer behavior shifts:

Inflation, interest rate changes, and the imposition of tariffs directly impact consumer purchasing power and confidence. Retail advertisers must understand if current market conditions are driving consumers towards value, specific product types, or alternative buying behaviors.

Learn more in our blog: The impact of tariffs on PPC Performance in Google Ads

Supply chain resilience and inventory management:

Global events continue to cause supply chain disruptions. Out-of-stock products or lengthy delivery times can instantly render ad spend useless. Real-time market intelligence helps you understand if competitors are gaining ground by having better stock or faster fulfilment.

Omni-channel integration:

The modern retail shopper moves seamlessly between online and offline. Your Google Ads strategy needs to reflect this, leveraging Local Inventory Ads, store visits, and linking online campaigns to in-store performance. Understanding competitor omni-channel strategies becomes a strategic advantage.

Brand trust and authenticity:

In a crowded market, consumers are increasingly choosing brands they trust and those that align with their values (e.g. sustainability, ethical sourcing). Ad copy and messaging must authentically reflect this, and competitive insights can reveal how rivals are building trust or addressing these themes.

Navigating this opaque and volatile environment requires more than just internal data; it demands clear, real-time market intelligence. This is where Adthena cuts through the noise, transforming uncertainty into actionable strategy.

1. The Google Ads “Black Box” (especially PMax)

What we hear: Retailers feel a profound lack of transparency in automated campaigns like Performance Max. They struggle to understand where their ads truly show and why Google’s AI makes certain decisions, leading to limited control and wasted spend.

What we do:
PMax campaigns thrive on high-quality inputs. To ensure your PMax campaigns deliver strong performance, Adthena’s Whole Market View can help you optimize your product titles, ad copy, refine your search term coverage, and enhance your budget distribution. These optimizations are crucial for setting your campaigns up for success.

Adthena’s Search Term Detail, a feature of Whole Market View, shows your competitors PPC search terms so you can see which terms are driving clicks.

2. Relentless Google Ads updates and AI-first imperative

What we hear: Google’s constant stream of new features, policy changes, and AI integrations means retail strategies quickly become outdated. Advertisers worry about staying compliant, adapting fast enough, and truly leveraging AI without losing human oversight or understanding its real impact.

What we do:
Adthena’s Smart Monitor alerts you to changes to competitor market share, shopping ads and text – helps you to proactively stay ahead of competitors. This unique external perspective empowers you to identify top-performing competitor phrases, receive alerts for crucial competitor ad copy changes (like Black Friday updates), and rapidly adapt to maintain a strong competitive edge as the platform continuously evolves.

Market Movements, a feature of Smart Monitor, will help identify high-performing opportunities , allowing you to redirect budget effectively and maximize ROAS.

3. The evolving SERP and navigating Google’s AI Overviews

What we hear: The introduction of Google’s AI Overviews is fundamentally reshaping the SERP. Retailers are observing their traditional PPC ads and organic listings being pushed further down the page, leading to concerns about declining visibility, reduced CTRs, and the rise of “zero-click” searches. This shift creates uncertainty about the effectiveness of existing keyword strategies and the optimal placement for ad spend in a rapidly evolving search environment. Advertisers struggle to understand the real impact on their competitive landscape and how rivals are adapting to secure visibility within or alongside these new AI-generated responses.

What we do: Adthena’s Search Landscape dashboard provides a live, personalized view of these shifts, allowing businesses to track the prominence of features like AI Overviews, Product Listings Ads and Vehicle Listing Ads, across critical search terms and competitors. This enables you to understand the impact on your brand’s visibility, analyze competitive AI strategies, and gain essential context to identify performance shifts and protect campaign efficiency.

4. Intense competitive pressure and inflating costs

What we hear: Retail is a hyper-competitive space, and Google Ads often feels like a constant bidding war. Advertisers battle fierce competition for keywords, leading to skyrocketing CPCs and a struggle to maintain profitability without overspending.

What we do: Adthena’s Market Share reports deliver a precise understanding of your competitive landscape, revealing your exact Share of Voice (SOV) against rivals. We help you identify where competitors are overbidding and where you can win impressions more efficiently, allowing you to optimize for profit and avoid wasteful bidding wars. Our insights enable you to reduce budget wastage and lower CPCs by highlighting optimal bidding opportunities and even detecting potential ad hijacking.

5. Prevent affiliates from raising your CPCs and stealing your revenue unfairly

What we hear: “Why are our branded CPCs so high?” “We’re paying commissions on sales that should have been ours anyway!” The hidden competition from affiliates who bid on their own brand terms is a constant battle. This practice not only inflates your CPC and drains your budget but also diverts valuable, high-intent customers you should have captured directly. It’s a frustrating feeling of losing control and revenue to partners who are meant to support, not cannibalize, your efforts.

What we do: Adthena’s Ad Hijacking Detection monitors your branded search terms across the entire search landscape, identifying precisely when and where affiliates (or other unauthorized parties) are bidding on your brand keywords. Our platform not only detects these instances,  but also provides concrete evidence—like ad screenshots and affiliate IDs—allowing you to confidently enforce your affiliate agreements and report violations. 

Adthena’s Ad Hijacking detection helps you identify and stop ad hijacking to reclaim your brand traffic, protect revenue, and safeguard your reputation with detailed, actionable insights.

6. Lack of actionable market and competitor insight

What we hear: Beyond their own account data, retailers often feel “flying blind” about the wider market. They lack granular, real-time intelligence on competitor strategies, winning ad copy, new product launches, or how rivals adapt to market changes. This absence of external perspective makes proactive strategy nearly impossible.

What we do:
Adthena lifts the lid on your competitors’ every move. We provide unparalleled PPC competitive intelligence detailing every ad run by every rival in your market. This includes analyzing their ad copy themes, product offerings, promotional tactics, and even detecting emerging pushes. With this comprehensive view, you can benchmark your performance, identify successful messaging, and proactively adapt your campaigns to counter rivals or capitalize on their weaknesses.

Analyze competitor ad copy and identify winning strategies, craft compelling ad copy that resonates with your target audience, and stay ahead of industry trends.

7. Economic volatility and disconnected performance

What we hear: Rapid shifts in consumer spending habits due to inflation, supply chain disruptions, and broader economic uncertainty directly impact demand and profitability. Advertisers struggle to align Google Ads spend with these unpredictable market dynamics, leading to inconsistent performance and difficulty justifying budgets without clear, real-time market signals.

What we do:
Adthena’s Market Trends report provides a crucial external lens on industry shifts. Our platform allows you to observe how major economic trends are impacting consumer search demand and, critically, how competitors are adjusting their strategies in response (e.g., pivoting to value messaging, promoting in-stock items). This real-time market pulse empowers you to align your ad spend with actual consumer intent and competitive adaptations, making data-backed decisions even in uncertain times.

See how your market share, spend, impressions, and position compare to the competition with Adthena’s Market Trends.

Our Market Share reports give you an instant snapshot into PPC industry trends, competitor activity, and share of voice from the previous month. 

Here are some trends we recently spotted in three key retail categories…

UK Apparel and Accessories Share of Spend

Shein’s spend share started strong at 16.5%, peaking at 17.32% before declining to 6.14% by month’s end. JD Sports fluctuated, ending at 4.39%. ASOS rose from 1.0% to 3.13%. BBC Ice Cream saw a mid-month peak, closing at 2.03%. Amazon remained steady, finishing at 1.69%. Lululemon’s share increased, ending at 1.65%. Next’s share varied, closing at 1.62%. Nike’s share was stable, ending at 1.42%. Marks & Spencer’s share dipped, closing at 1.41%. MandM Direct’s share fluctuated, ending at 1.37%.

View full report

UK Health and Beauty Share of Impressions

Amazon led with a peak impression share of 13.52% on the 12th. Ulta surged to 10.53% by month-end. Sephora peaked at 15.68% on the 26th. CVS, Target, and others showed varied trends, ending with Amazon’s dominance.

View full report

Australia Grocery and Food Market Loss and Market Gains

Woolworths.com.au surged with a 4.56% click share increase, while liquorland.com.au faced a 1.42% decline. Coles.com.au rose by 1.04%, contrasting with danmurphys.com.au’s 1.19% drop.

View full report

Navigating Retail PPC can feel like an uphill battle, especially with unpredictable seasonal shifts, relentless competition, and the constant evolution of Google’s AI-driven landscape, from opaque Performance Max campaigns to the emergence of AI Overviews. Retail advertisers often feel “blinded” by the “black box” of Google Ads, struggling to understand why their budgets are spent, where their ads truly appear, and how to adapt fast enough to avoid “skyrocketing CPCs” and missed opportunities. This anxiety stems from a critical lack of real-time, actionable competitive insight.

This is where Adthena steps in, providing the unparalleled visibility you crave. Our Market Share reports offer a crucial external lens, revealing real-time seasonal trends, granular competitor activity, and precise market share shifts specific to your retail categories. While Google’s AI and automation (PMax, Smart Bidding, generative AI) offer powerful capabilities, they inherently demand a deeper understanding of the competitive environment to truly leverage them. Adthena complements Google’s insights by demystifying the “black box,” transforming raw data into the actionable intelligence you need to make confident decisions.

Don’t just react to the market – shape it. By combining your deep industry knowledge with Adthena’s comprehensive search intelligence, you gain the power to:

• Forecast with precision: Understand past seasonal patterns and current competitive moves to predict future performance.
• Optimize for profit: Identify keyword gaps and ad copy trends that drive higher ROI.
• Outmaneuver the competition: Proactively adapt your strategies based on real-time competitive intelligence.
• Dominate your market share: Turn every Google Ads campaign into a strategic advantage, consistently winning against your rivals, even during challenging periods.

The future of PPC in retail is intelligent, automated, and fiercely competitive. But with Adthena, you’re not just participating – you’re leading.

Book your personalized demo.