Is Google's new AI Max for Search the future, or is it a hidden trap?

In this episode of Growing E-commerce, Mike Ryan and Chris dive into brand-new, independent test data on AI Max for Search and discuss the strategic role of Demand Gen and the future of Dynamic Search Ads (DSA).

The analysis of over 250 e-commerce campaigns reveals significant concerns:

• AI Max delivers an average 35% lower Return on Ad Spend (ROAS) and a higher Cost Per Conversion (CPA) compared to traditional broad match campaigns in retail.
• The conversions AI Max drives are often at a lower Average Order Value (AOV), raising questions about incrementality versus cannibalization.

Mike predicts that Dynamic Search Ads (DSA) is on its way to being fully sunset/upgraded to AI Max by early 2026. The shift signals Google’s move to consolidate broad automation into AI Max and the visual discovery into Demand Gen. The hosts also warn that many advertisers are creating unnecessary data fragmentation and overlap by running AI Max, DSA, and PMAX concurrently.

The key discussion focuses on the Demand Gen Strategy: Demand Gen is best used as a visual discovery engine to compete with Paid Social/Meta and is heavily driven by video ads across YouTube and Shorts. Learn how to use it strategically as a mid-funnel tool to feed Performance Max (PMAX).

What to do now: AI Max is here to stay. Mike and Chris offer advice on how to use AI Max's built-in controls (like negative keywords) to make the feature work smarter for your business.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

Q3 earnings are in, and the consolidation is real. Hosts Mike Ryan and Chris dive into the gravity-defying numbers, confirming that Google's core ad revenue is up a strong 12.6% year-over-year (YoY), and their massive Cloud backlog sits at $155 billion USD. 

Chris states that Google is not the "bee-headed chicken" but remains the dominant "American eagle". The focus then shifts to Amazon, which has truly become a services business (Cloud and Ads), with its retail component no longer the core driver of its wealth.

But the big story isn't the growth—it's the crisis. Mike and Chris reveal a dangerous surge in ad costs: CPCs in PMAX and Shopping are up an alarming 30% year-to-date (since week one of the year), with Shopping CPCs specifically soaring by 36% YoY. Chris warns that this kind of inflation is a "real threat" to Google's business model because it is "forcing especially small and middle businesses out" of the auction. 

They discuss whether a competitor like OpenAI could challenge Google by offering "massively discounted CPCs" to eat into market share. Finally, Mike introduces the free smec Market Observer tool that helps online retailers benchmark their CPCs and check competition levels from giants like Amazon and Temu.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

This episode tackles the most urgent issues retail clients are facing right now: exploding costs and profound market uncertainty.

Hosts Mike Ryan and Chris dive into the alarming trend of increasing CPCs (Cost Per Click), which are soaring at rates of up to 30% in key categories. Chris calls these increases a "fucking pain in the ass" and a potential "business destroyer," especially for businesses with paper-thin margins. They debate whether Google is responsible or if it's purely a market-level crisis, and why Google must find a solution to prevent mid-sized players from running out of money.

The second major theme is the AI search disruption. The hosts discuss the pervasive uncertainty among retailers—from small shops to enterprise clients—about the future of search behavior and the need for a stronger Data Density strategy. They reveal the huge structural change that the average search query in AI mode is 2.5x longer than in standard search. Finally, they discuss the evolving role of the PPC manager, emphasizing the need for system thinking and an openness to human-machine collaboration to thrive.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

It's here! Ads are officially landing inside your AI search results, and Google’s not asking for permission. 

In this episode, Mike Ryan and Chris break down the massive global rollout of AI Overviews (AIO) and AI Mode (AIM). They reveal the experimental phase where ads will soon appear inside the AI content itself, and expose the most critical issue: advertisers currently have neither an opt-in nor an opt-out for these new properties. This means your existing ad budget is being automatically pushed into this new environment—a fundamental shift in search since the smartphone.

But the real disruption isn't just Google—it's OpenAI. They've launched an aggressive e-commerce shopping assistant model, complete with in-chat checkout and integrated with giants like Walmart and Target.Our hosts explain why this completely changes the game, essentially turning the AI into a marketplace. They discuss the only way retailers can survive this new reality: providing maximum information density (feeds, structured data, landing pages) to be visible to the AI, even as you are forced to compete in its new commission-based ecosystem.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

This controversial episode is tackling the messy side of shopping! Hosts Mike Ryan and Christian Scharmueller dive straight into the news that Zalando is tightening its return policy, issuing warnings and even year-long bans for shoppers with "disproportionately high return volumes". 

With fashion return rates soaring (sometimes 30-70%!), they break down why retailers are finally getting serious about profitability and why relying solely on order value is a massive, costly mistake for your advertising campaigns.

But don't panic! We offer the smart, proactive solution: leveraging off-channel first-party data. 

Mike and Chris explain how you can integrate return rate data into your campaigns using tools like Conversions with Cart Data and even Google’s Product Return Rate Predictor. Plus: Mike and Chris take a look at how Google is leading the pack with virtual try-on technology to stop returns before they even happen. 

Finally, the boys tackle the all-important Black Friday strategy, discussing the dilution of the sales event and Google's new "triple peak week" thesis: Surging Sunday, Black Friday, and Cyber Sunday.

Links mentioned in this episode:

https://smarter-ecommerce.com/en/smec-market-observer/
https://cloud.google.com/vertex-ai/generative-ai/docs/model-reference/virtual-try-on-api
https://github.com/google-marketing-solutions/product-return-predictor

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

In this solo episode, host Mike Ryan tackles the opaqueness of the digital advertising industry. He then reveals a previously confidential email from two senior Google executives. This internal communication confirms that Google’s “PMAXification” phase is over. While their old approach was to push Performance Max as the end-all solution, their new strategy is a broader, more complex one centered around a “holy trinity” of campaigns called the PowerPack.

Mike breaks down the roles of the three campaign types in the PowerPack—Performance Max (conversions), Demand Gen (consideration), and AI Max for Search (expansion). He then provides a critical look at how these technologies work together in reality, exposing the redundancies and potential for self-competition that could make a “hygienic, well-organized” account harder to manage than ever before. This is a must-watch for anyone who wants to look behind Google’s curtain and understand where your ad spend is really going.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

Will Google's new AI strategy kill ecommerce as you know it? In this episode of Growing Ecommerce, Mike Ryan and Chris Scharmueller dissect the biggest news from DMEXCO 2025 in Cologne, Germany, and reveal their bold take on the future of paid search and online retail.

Chris shares his on-the-ground insights from the conference, including his talk on a major stage in front of over 600 people. He and Mike dive deep into why Google Search is still an unstoppable "money printing machine" despite new competitors like ChatGPT and Perplexity. 

They discuss staggering online search stats, like the 5.8 trillion search queries that happen globally each year, with over 90% of them going through Google.

But here's the twist: They explore how new AI products like AI Overviews (AIOs) are already creating "zero-click events", which could massively disrupt the classic e-commerce funnel. 

Could Google's "buy on Google" feature make a comeback? And if it does, what does it mean for retailers who could become just a "warehouse for Google"?

This episode isn't just about what's happening; it's about what's coming. Don't miss this crucial conversation on how to adapt to the future of e-commerce.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

Welcome to Episode 10 of Growing ecommerce! Get ready to cut through the noise with your hosts Mike and Chris, as they tackle the real-world implications of three massive forces in the market.

First, they take on Google's newest AI-powered ad product, A/I Max. While Google promises performance, Mike and Chris reveal how it can lead to chaotic bidding on competitor terms and the low-quality Search Partner Network. The hosts also discuss why an "old school" strategy called search query sculpting is more relevant than ever to regain control and maximize your ad spend.

Then, the focus shifts to the critical, yet often overlooked, topic of conversion lag and latency. The hosts explain how this natural consumer behavior creates discrepancies between your ad platform data and your backend sales reports, and why it's a key metric for both marketing managers and business leaders.

Finally, they reveal the latest data on Temu’s staggering growth across Europe. With fresh numbers in hand, the hosts reveal which countries are feeling the most pressure from this new market giant and what this means for local retailers struggling to compete.

This episode is packed with the insights you need to navigate the ever-changing world of ecommerce. Tune in and get ready to level up your ad strategy.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

Welcome to Episode 9 of Growing Ecommerce! In a world buzzing with AI hype, we're cutting through the noise to ask the big question: Is this the next dot-com bubble, or a long-term, foundational shift for the future of business?

Join hosts Mike and Chris as they debate the financial health of the tech giants driving the AI revolution and challenge the notion that AI has delivered on its promised productivity gains. They'll also reveal some mind-blowing data on Google Shopping's mysterious lack of market shock when Amazon's ads disappeared, and expose the "hellscape" of Google Merchant Center account suspensions.

Tune in to get the full picture behind the headlines and learn what’s truly happening in the world of ecommerce.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/

In this week’s show, Mike Ryan and Chris Scharmueller dive headfirst into the "PMAXification" of the advertising landscape, a term Mike coined to describe how platforms from Google to TikTok are rushing to automate your ad spend. 

But just as we thought the black box was here to stay, Google is making a surprising U-turn, opening up more control and data for advertisers. We'll break down if the other platforms, like TikTok with its mandatory GMV Max campaigns and Meta with its "AI-first, no control" strategy, will follow suit.

Don't go anywhere because things get even spicier. Mike starts a "crusade" against Google's Search Partner Network, exposing why some of the "partnerships" are a little unsettling and what brands need to watch out for. 

And finally, in a lightning round you won't want to miss, the hosts go head-to-head on the most important question in tech right now: is AI a bubble, yes or no? One of them is a believer, and the other is a skeptic, and it's not who you think.

About smec (Smarter Ecommerce):

At smec - Smarter Ecommerce, we specialize in transforming business goals into optimized ad campaigns. With over 16 years of experience in Google & Microsoft Ads, our intelligent software and expert services help retailers achieve superior results.

We're committed to giving you the tools and insights needed to stay ahead in the ever-evolving world of digital advertising.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

• smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
• LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
• Newsletter: https://smarter-ecommerce.com/en/newsletter/
• Instagram: https://www.instagram.com/smarterecommerce/