During the final quarter of 2025, I noticed a remarkable 13% rise in spending on Google search ads compared to the previous year, as reported by Tinuiti’s latest benchmark. It was eye-opening to see this surge in click growth, marking the strongest pace since early 2021, particularly as average CPCs slightly declined for the second quarter in a row. The expansion of AI-driven results seemed to be increasing the overall query volume, including those crucial commercial searches.
Why we care. As I’ve observed, Google search ad clicks are skyrocketing while CPCs stay flat. This trend is largely due to Amazon’s strategic withdrawal from U.S. Google Shopping auctions, which has opened the door for advertisers to find both opportunities and challenges as spending patterns shift between search and shopping.
Additionally, AI-driven query growth is broadening the search funnel, offering more chances to connect with customers earlier in their buying process.
Shopping ad trends: During the holiday season, I followed how Google Shopping ad expenditure jumped 16% year over year, propelled by Target and Walmart stepping up while Amazon’s absence left a noticeable gap in auctions. Meanwhile, Shein and Temu maintained smaller roles. Interestingly, CPCs for Shopping Ads weakened slightly, falling 1% year over year.
Performance Max. PMax campaigns captured my attention as they represented 62% of total Google Shopping spend and 61% of sales, which, although slightly down from the last year, showed an increase from earlier in 2025. Non-shopping inventory, such as video and display, accounted for 39% of PMax spending, with YouTube video making up 13% of impressions beyond search.
Text ads. It’s exciting to note that Google text ad clicks reached a 19-quarter high, climbing 9% year over year. Spending was up by 11%, with CPC growth remaining modest at 2%. Brand keyword CPC growth saw a slowdown to just 2% year over year, with declining CTRs counterbalanced by strong impression growth, likely driven by AI-driven overviews in search results.
Microsoft search growth. Microsoft appeared to outpace Google in paid search spend growth, with a 16% year-over-year jump in Q4, rising from 12% in Q3. Click growth slowed slightly to 10%, while CPCs increased by 5%, as Amazon kept its presence in Microsoft Shopping listings.
Amazon advertising. I observed that Sponsored Products clicks on Amazon rose by 23% year over year, showcasing an intriguing pattern despite a 1% drop in average CPCs. Sponsored Brands experienced modest spend growth (+2%) but with declining clicks, whereas Sponsored Display spending fell 47%. Meanwhile, Amazon DSP spending rose 31% year over year, propelled by offsite inventory and premium placements like Prime Video ads.
Walmart trends. Sponsored Products were a dominant force in Walmart’s search ad spend, accounting for 89% with conversions remaining high through the holiday season. Display ad spending grew to 35% of the total, with 60% geared toward offsite inventory targeting.
Video and streaming ads. I found it fascinating that YouTube ad spending increased by 13% year over year, coupled with a sharp 38% rise in impressions and an 18% drop in CPMs. Video now commands 66% of Google Demand Gen spending. Across traditional streaming platforms, Prime Video ad spending surged 31% from Q3 to Q4, overtaking Netflix in CPMs, while TV screens dominated spending, with phones crucial for direct-response formats.
The bottom line. Google’s search and shopping landscapes continue to thrive, driven by AI-enhanced query growth and evolving retailer participation, presenting both opportunities and challenges. Meanwhile, Microsoft and Amazon are advancing their ad offerings, providing me with diverse options to engage high-intent audiences across search, display, and streaming.
Dig Deeper. Digital Ads Benchmark Report Q4 2025
Inspired by this post on Search Engine Land.
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