If you’re managing campaigns in Google Ads in 2025, the latest Google Ads update could be the difference between breaking even and scaling profitably. With new improvements to Performance Max and Demand Gen campaigns, this update reshapes how advertisers build and optimize their strategies.
With more precise targeting options, improved transparency, and enhanced controls, these updates empower advertisers to fine-tune campaigns and drive meaningful results. Whether you’re aiming for increased conversions, improved ROI, or higher brand visibility, these new tools provide an exciting opportunity to level-up your strategy.
At Xari Agency, we implement these updates early for our clients, aligning them with long-term goals and maximizing their ROI from day one.
Want a digital partner that helps you stay ahead of Google Ads 2025 updates? Let’s talk today.
Quick Article Summary: What’s New in Google Ads 2025 (Performance Max and Demand Gen Campaigns)
Performance Max (PMax):
- Up to 1,000 negative keywords per campaign
- Brand exclusions for Search (while keeping Shopping traffic)
- New network-level visibility (Search, Shopping, Display, Video)
- “URL Contains” targeting rules for smarter page-level control
Demand Gen Campaigns:
- Custom placement selection (YouTube, Shorts, Discover, Gmail, GDN)
- Option to disable optimized targeting for full audience control
What It Means for You:
These updates unlock better control, cleaner data, and more efficient budget usage—giving advertisers the tools to improve conversions, ROI, and targeting precision across the funnel.
Google Ads Update 2025: What’s New with Performance Max and Demand Gen
Performance Max (PMax) campaigns are Google’s all-in-one solution, designed for full-funnel advertising across Search, Display, Shopping, YouTube, and more. Built to leverage Google’s automation and machine learning, PMax simplifies campaign management and enhances Performance Max optimization, aiming to drive conversions and efficiency.
On the other hand, Demand Gen campaigns specifically target user engagement and brand discovery across Google’s visually-driven platforms like YouTube, Discover, Gmail, and Display. By focusing heavily on precise audience targeting and compelling creatives, Demand Gen targeting helps build brand awareness and attract qualified leads.
- In other words, do you need sales today? PMax.
- Want to grow your brand and warm up leads? Demand Gen.
- Together, they give you full-funnel control.
What We Do at Xari Agency
At Xari Agency, we don’t just run ads—we build strategies. Our approach blends data-driven targeting, creative testing, and real-time optimization to get the most from Performance Max and Demand Gen campaigns.
From onboarding to monthly reviews, we prioritize communication, results, and client education. That’s how we’ve helped brands go from inefficient ad spend to 3x ROAS in under 90 days.
Explore our Google Ads services here.
Google Ads Update for 2025: Performance Max Campaigns
Why This Google Ads Update Changes the Game for 2025
The 2025 Google Ads update marks a turning point in how advertisers approach campaign management, performance tracking, and audience targeting. For years, one of the biggest challenges with Google Ads was limited control—especially in fully automated campaigns like Performance Max. But this update begins to shift the power back into the hands of advertisers.
With features like the expanded 1,000 negative keyword limit, URL-based targeting, and network-level transparency, you can now guide Google’s automation with far more precision. That means fewer wasted impressions, more qualified clicks, and stronger return on ad spend. For businesses that rely on brand-specific strategies, the ability to exclude branded keywords from PMax search—while keeping them in Shopping—is a major win.
Demand Gen campaigns are also evolving fast. Placement control and the option to turn off optimized targeting give marketers more flexibility, especially those used to Meta Ads-style precision.
In short, this Google Ads update isn’t just an iteration—it’s a meaningful shift toward customization, efficiency, and smarter scaling. If you’ve ever felt limited by automation or unsure where your ad spend was going, these updates were made with you in mind.
Expanded Negative Keyword Limit
One of the most requested features from advertisers is finally here: the Performance Max negative keyword limit has been increased from 100 to 1,000 per campaign. This update gives advertisers far more control in filtering out irrelevant or low-intent traffic—leading to more efficient spend and better-quality leads.
Previously, adding only a handful of negative keywords meant having to be extremely selective or rely on support to apply them at the account level. Now, with ten times the capacity, you can proactively exclude searches that don’t align with your goals. Common examples worth excluding include “free”, “cheap”, “review”, and “discount code” — terms that often signal low purchase intent or budget-conscious browsers.
By refining who your ads don’t reach, you improve the relevance of every impression—and avoid wasting budget on clicks unlikely to convert.
Upcoming Brand Exclusions
Google is also rolling out the ability to exclude branded search terms from Performance Max campaigns—specifically for the Search network—while still allowing branded traffic to flow through Shopping. This update gives businesses tighter control over their brand strategy, avoiding overlap between Search and PMax campaigns and minimizing inflated cost-per-clicks caused by internal competition.
For advertisers who run separate branded Search campaigns, this change is especially helpful—it prevents unnecessary cannibalization while ensuring a cleaner reporting structure.
Enhanced Network-Level Visibility
Until now, one of the biggest challenges with Performance Max has been the lack of visibility into how your budget is distributed across different Google networks. That’s changing.
With the new network-level performance data, advertisers will be able to see how campaigns perform across Search, Shopping, Display, and Video. This enhanced transparency makes it easier to assess what’s working—and where to shift budget to get the best results.
URL-Based Targeting Rules
Another valuable addition is the ability to use “URL Contains” logic to guide campaign targeting. This means advertisers can tell Google which pages or product categories to prioritize—without relying solely on product feeds or asset groups.
For ecommerce brands or large sites with multiple product types, this update allows for sharper control over where traffic is directed, leading to more relevant journeys and better conversion potential.
With these updates, Performance Max campaigns are becoming more intelligent, customizable, and aligned with the real needs of advertisers—helping you get more from every campaign you run.
Google Ads Update: Demand Gen Campaign Updates for 2025
Precision Placement Controls
In 2025, Demand Gen campaigns are introducing greater control over ad placements, providing advertisers with more precise ways to reach their target audiences. The updated placement options now include YouTube, YouTube Shorts, Discover, Gmail, and the Google Display Network. This change significantly enhances your ability to select channels that align with your audience’s habits, improving relevance and engagement.
By strategically choosing where your ads appear, you can ensure a higher return on your advertising spend, reaching prospects who are most likely to engage. Whether your objective is brand discovery, lead generation, or maximizing engagement, having control over specific placements translates directly into more efficient budget allocation and enhanced audience targeting.
Full Control by Turning Off Optimized Targeting
Another important update is the ability to disable optimized targeting in Demand Gen campaigns. Previously, Google automatically expanded targeting beyond selected audiences, sometimes diluting precision. Now, by turning off this feature, you have complete control over exactly who sees your ads, similar to the targeting accuracy advertisers are accustomed to on Meta Ads.
Disabling optimized targeting ensures your ads are shown only to the audience segments you’ve identified as valuable. This precision targeting reduces wasted impressions, increases relevance, and ultimately results in higher-quality traffic and conversions. With tighter alignment between your ads and the intended audience, your advertising budget is used more effectively—delivering clear, measurable results.
Why Google Ads Update in 2025 Matter for Your Business
Adopting these 2025 updates early positions your business to achieve a competitive edge. Leveraging advanced placement controls and targeting precision means higher returns on investment, improved ad efficiency, and better budget management. By quickly incorporating these changes, you’ll stay ahead of your competitors, maximizing your ad performance and profitability.
This Google Ads update gives marketers more control overto Performance Max and Demand Gen campaigns offer new ways to win in a crowded market. The sooner you adapt, the faster you’ll see results.
Looking to implement the latest Google Ads updates into your 2025 strategy? Partner with Xari Agency and unlock the full power of Google Ads in 2025.
