Google’s spent the last few years nudging us all towards consolidation. Fewer campaigns, broader targeting, let the AI do its thing. But this week, they’ve quietly shifted their messaging—and it’s worth paying attention to what’s changed.
The platform has officially clarified its stance on campaign consolidation, and the message is more nuanced than the “consolidate everything” drumbeat we’ve been hearing. For anyone running an e-commerce store and trying to make sense of what Google’s actually recommending, this matters.
The Consolidation Confusion Clears Up
Here’s what Google’s now saying: consolidation isn’t a universal rule. It depends entirely on your business structure, your product range, and your goals.
For years, the advice seemed straightforward—combine your campaigns, give Smart Bidding more data to work with, and watch the AI work its magic. And for some businesses, that genuinely works. If you’re selling similar products to similar audiences with similar margins, consolidation can help Google’s algorithms learn faster and optimise more effectively.
But if you’re running an online store with distinct product categories—say, budget items and premium products, or completely different customer segments—smashing everything into one campaign can muddy the waters. Google’s algorithms might prioritise the easy wins (usually the cheaper, higher-volume products) whilst your premium range gets starved of budget.
The clarification? Structure your campaigns based on business logic first, algorithmic efficiency second. If your products have different profit margins, different seasonality, or target genuinely different customers, keep them separated. Give yourself the control to allocate budget where it actually matters to your business.
Shopping Ads Get an AI Mode Makeover
Meanwhile, Google’s been testing something called “AI Mode” for Shopping ads. The details are still emerging, but this appears to be another step in Google’s march towards automation.
What does AI Mode actually mean? From what we’re seeing, it’s about letting Google’s systems make more decisions about how your products are shown, which searches trigger your ads, and how your budget gets distributed. Think of it as Performance Max’s cousin—less manual control, more algorithmic decision-making.
Now, Performance Max already does this across multiple channels (Shopping, Search, YouTube, Display, Discover, and Gmail), so if AI Mode for Shopping becomes standard, you’ll want to keep a close eye on where your spend is actually going. Shopping ads and Search ads behave very differently—Shopping typically captures people browsing and comparing, whilst Search often catches folks with specific intent. If Google’s blending these together more aggressively, you’ll need to break down your data properly to understand what’s actually driving sales.
Is this something to worry about? Not necessarily. But it is something to watch. The testing phase means this isn’t rolling out everywhere yet, but it signals where Google’s heading. More automation, less granular control.
The Keyword Strategy Shift Nobody’s Talking About
Alongside the Shopping changes, there’s been a noticeable shift in how keyword strategy is being discussed across the industry. Microsoft’s released guidance on AI-powered search, and the underlying message applies to Google too: exact match isn’t what it used to be.
We’ve known for a while that Google’s “close variants” have stretched the definition of exact match considerably. But the direction of travel is clear—keywords are becoming targeting signals rather than precise triggers. Google’s AI interprets intent, not just the specific words someone types.
What does this mean for your campaigns? Your keyword lists matter less than they did five years ago, but they’re not irrelevant. Think of them as guardrails rather than precise instructions. You’re telling Google the territory you want to play in, and the algorithms decide exactly where to show up within that space.
For e-commerce businesses, this actually creates an opportunity. Instead of building enormous keyword lists trying to capture every possible product variation, focus on the core terms that define what you sell and who you sell to. Then let the AI find the variations. But—and this is crucial—monitor your search term reports religiously. The AI will wander if you don’t keep an eye on it.
What Actually Drives Conversions in 2025
With all these automation changes swirling around, it’s easy to forget the fundamentals. But industry analysis this week highlighted what’s still actually driving conversions, and it’s worth a reminder.
First up: landing page experience still trumps everything. Google can optimise your bids perfectly, but if someone clicks through to a slow, confusing, or mobile-unfriendly page, you’re toast. The algorithm can’t fix a poor customer experience.
Second: audience signals matter more than ever. If you’re not feeding Google data about who converts—through customer lists, website visitors, or engagement data—you’re fighting with one hand tied behind your back. The AI needs something to work with.
Third: creative quality counts. With Shopping campaigns especially, your product images and titles are doing heavy lifting. Google’s systems can show your ads to the right people at the right time, but if your product photo looks like it was taken on a phone from 2010, nobody’s clicking.
These aren’t revolutionary insights, but they’re easy to overlook when you’re caught up in campaign structures and bidding strategies. The automation handles the how and when—you need to handle the what and why.
Fixing Low Conversion Rates: The Practical Stuff
Speaking of fundamentals, there’s been useful guidance circulating about addressing poor conversion rates in Google Ads. Most of it boils down to this: check your basics before you blame the algorithm.
Are your conversion tracking tags actually firing? You’d be surprised how often this is the culprit. Is your attribution window appropriate for your business? If you’re selling considered purchases with longer decision cycles, a seven-day window might be cutting off conversions that genuinely resulted from your ads.
Are you excluding existing customers from acquisition campaigns? Are you running ads overnight when your customer service team can’t respond to enquiries? Are your mobile bids accounting for the fact that many people browse on mobile but convert on desktop?
None of this is glamorous, but it’s where real improvements happen. Google’s automation is sophisticated, but it can’t overcome fundamental misconfigurations.
What This All Means Going Forward
The thread connecting all of these developments is the same one we’ve been following for years: Google wants more control, less manual management, and broader targeting. But this week’s consolidation clarification suggests they’re hearing the pushback. Blind consolidation doesn’t work for everyone.
For e-commerce businesses, the path forward is about finding the right balance. Use Google’s automation where it genuinely helps—bidding, ad rotation, some targeting expansion. But maintain structure where it reflects genuine business differences. Keep your premium products separate from your bargain bins. Keep your remarketing separate from cold prospecting. Give yourself the ability to make business decisions, not just algorithmic ones.
And most importantly, keep watching your data. Break it down by product, by channel, by device, by time of day. The more Google automates, the more important it becomes to understand what’s actually happening beneath the surface. The AI will optimise towards something—you need to make sure it’s optimising towards what actually matters to your business.