How AI is changing PPC in 2025 | The Paid Social Marketer Newsletter

PLUS: Meta or Google? Your ad budget answer depends on this

Author

Zihan Lyu
April 09, 2025 • Estimated Reading Time: 30 minutes

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Welcome to The Paid Social Marketer, your essential newsletter for social media marketers and eCommerce professionals.

Editor’s Pick 🌟

Curious to know the optimal way to allocate your Google Ads budget? Fospha’s latest analysis of top performers reveals key insights into balancing Performance Max (PMAX) and Paid Search:

🥇 How Top-Performers Do It: For the highest-performing 25% of brands, a strategic allocation of around 55% of total Google budget to Performance Max and 12% to Paid Search appears to be the sweet spot for driving results.

🏢 Size Matters: Note, this optimal allocation does vary slightly between different brand sizes. Top-performing small brands were found to have a 52% PMAX / 15% Paid Search split, while top-performing large brands allocated more to PMAX, with a 59% PMAX / 9% Paid Search split.

Why? With extensive product catalogs and diverse customer segments, large brands can leverage PMAX's AI-driven optimization, while smaller brands benefit from the precision targeting of Paid Search to capture high-intent traffic while still leveraging PMAX for efficiency

Unlock the full potential of your Google Ads budget! Fospha’s new Performance Max and Paid Search Playbook is your guide to cultivating cross-channel synergies, reducing wasted ad spend, and maximizing blended performance.

Sector Spotlight 🎥

SOCIAL MEDIA STRATEGY

President Trump has extended ByteDance's deadline to sell TikTok's U.S. operations by 75 days, staving off an immediate ban and preserving its marketing value. This delay allows marketers to continue capitalizing on TikTok's youth-oriented audience, although potential geopolitical shifts could impact future advertising strategies. The extension underscores the platform's importance in reaching younger demographics amid growing U.S.-China trade tensions.

INNOVATIVE MARKETING TECHNOLOGIES

AI is the cornerstone of PPC in 2025, drastically enhancing automation, personalization, and data analytics. Google leads with AI-driven bid strategies and Performance Max campaigns, optimizing ads across channels for maximum exposure. Embracing AI tools is crucial for marketers seeking efficiency and competitive advantage.

SOCIAL MEDIA STRATEGY

Amazon, AppLovin, and OnlyFans' Tim Stokely have surprisingly joined Oracle in bidding for TikTok as its possible ban looms. Marketers should note the potential shift in ad spend towards platforms like YouTube and CTV, depending on TikTok's future ownership and operational changes.

CONTENT MARKETING STRATEGIES

Ryan Bartlett transformed True Classic into a near billion-dollar brand by employing a content marketing strategy that relied heavily on solving fit, comfort, and pricing issues with men's t-shirts. His approach to Facebook advertising, humor incorporation, and static image use proved successful, offering valuable insights for marketers aiming to balance conversion-focused content with brand-building efforts. This showcases the potential of focused content and agile advertising to achieve extraordinary growth in eCommerce.

BUDGET ALLOCATION

In deciding between Google Ads and Meta Ads, brand goals and customer behavior dictate ad spend allocation. Google Ads suits high-intent searches, while Meta is ideal for brand-building and discovery, especially for visually engaging products. Ad budgets should remain flexible, adapting to performance data and market shifts for optimal results.

Influencer Corner 📢'

We chatted with Amy J. Oelkers, TikTok’s GM, US Head of Commerce, about how the power of discovery on TikTok is driving commerce everywhere | TikTok for Business

📌 4 in 5 users are discovering brands through creators' recommendations.

📌 After discovering something on TikTok (via a creator), 45% of users continued searching for more information on the platform.

📌 1 in 4 users search within the first 30 seconds of opening the app (internal user data).

In our Shoptalk 2025 wrap up with ClickZ.com, one thing was clear | Lee Arthur

This industry is operating in a new reality. From full-funnel AI to omnichannel orchestration, the conversations weren’t speculative,they were tactical.

Here are the biggest shifts we heard on the ground:

🔹 AI is everywhere
“AI isn’t a concept -it’s a capability,” summed up by voices across the floor. From text-to-buy to media measurement, brands are moving from testing to scaling.

🔹 Omnichannel is baseline
“Omnichannel isn’t a trend - it’s the new baseline,” said Sam Carter, CEO at Fospha. The new standard is unified journeys online and off.

Optimization Hub ⚙️

BUSINESS MEASUREMENT FRAMEWORK

Breaking organizational silos is essential for building effective measurement frameworks, ensuring data-driven insights drive marketing success. By involving all stakeholders and focusing on real-world applications, businesses can align metrics with strategic objectives. Tailored frameworks improve communication and performance across departments, essential for today's competitive landscape.

SOCIAL MEDIA MARKETING

Instagram's new monthly recap feature provides creators with valuable insights into their content performance, including total views, follower engagement, and specific audience activity times. This feature aids marketers by offering actionable tips to enhance content strategy based on the unique behaviors of their audiences, fostering a more tailored approach to growth and engagement.

ECOMMERCE OPTIMIZATION

Adjusting the Google Ads bid strategy, specifically the Target ROAS, can enhance Shopping Ads revenue without reducing profitability for eCommerce businesses. Use Impression Share and Search Lost IS metrics to identify and rectify revenue loss. Gradual budget and ROAS adjustments ensure consistent performance improvement.

📲 Like what you’re seeing?

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