It’s time for a rethink.
In 2025, pay per click advertising (PPC ads) isn’t about driving traffic for its own sake. It’s about interpreting patterns, exposing waste, and extracting meaning from what the metrics aren't saying.
Even as search engine marketing (SEM) becomes more automated, understanding the why behind your click through rate, conversion tracking, or ad targeting separates good campaigns from strategic ones.
Ad delivery is determined by machine prediction, not just settings
AI-powered bidding strategies, notably those driven by machine learning, have been shown to reduce ad spend by up to 24% and improve click-through rates by around 28%1.
Gone are the days when ad scheduling and geo-targeting dictated who saw your ad. In 2025, platforms like Google and Meta use AI to weigh performance probabilities across real-time auctions. Your setup is just a signal. The platform decides when and where your pay per click ad gets served.
If your visibility on the search engine results page is lower than expected, the problem may not be budget. It may be a signal misfire.
Assets and formats now define whether your ad is even eligible
What used to be called ad extensions are now critical components of your Google Ads feature set. Assets like image ads, call buttons, and lead forms aren’t optional. They’re baked into how platforms calculate ad relevance, ad rank, and eligibility on the Google Display Network or search network.
Underperforming display ads often have less to do with creative quality and more to do with missing asset types. Some of the most overlooked but impactful assets include structured snippets, price extensions, and image formats tailored for mobile devices.
We use the term Asset Depth Index to describe the cumulative presence, variety, and platform optimisation of assets within a campaign. That’s because eligibility now depends on asset richness as much as bidding power.
The bottom line: Fix the structure before the story.
Granular ad groups are weakening your algorithmic advantage
Many advertisers still structure campaigns as if Google AdWords hadn't evolved. In an intent-driven world, segmenting based on keyword match types alone creates data silos that prevent the system from learning, restrict reach on the search network, and undercut performance across search results pages.
A smarter digital marketing strategy means grouping campaigns around behavior patterns and funnel stages, not one keyword per ad group.
We call this the Intent Alignment Model: a strategic framework that organises PPC ads by where the audience is in their journey: awareness, consideration, or conversion. By structuring ad groups this way, advertisers enhance ad targeting, signal intent more clearly, and make smarter delivery decisions by automation platforms.
This is how you shift from tactical setup to scalable, predictive search engine marketing.
Ad rank reflects experience quality, not just bids
If you’re paying more or losing impressions, the answer often lies in how well your ad text, landing page, and assets align. Ad rank today is based on:
- Your bid
- Historical performance
- Landing page quality
- Predicted impact of formats like Responsive Search Ads
Audience targeting is behavioral, not demographic
Today’s ad targeting doesn’t care much about age or income. It’s about behavioural signals: app usage, content views, in-market activity.
Feeding the platforms with CRM data, email hashes, and modeled segments via tools like Customer Match, LinkedIn Ads, and Facebook Dynamic Ads lets their systems predict intent and deliver to those who convert.
Automation needs data, not just goals
Smart bidding isn’t magic. Without robust conversion tracking, consistent structure, and conversion volume, platforms can’t optimise toward return on ad spend.
Google recommends having a minimum of 30 conversions in the past 30 days before switching from Maximize Conversions to Target CPA or Target Return on Ad Spend. This ensures smart bidding has enough data to make accurate predictions.
If your PPC ads are showing volatility in spend or ROI, look at your data quality. AI can’t optimise what it doesn’t understand.
Clicks mean nothing without downstream outcomes
Spikes in click through rate are not wins if your bounce rate stays high or conversions flatline. Look at where those clicks go. Is the ad or landing page aligned with the intent?
Clicks without context are just expensive distractions. If the post-click experience doesn’t move users forward, you're not running a funnel. You’re just burning budget.
Conversions should tie to revenue, not just actions
A form fill is not the same as a sale. Effective digital marketing focuses on outcomes that tie directly to revenue generated: sales, booked meetings, or high-quality leads that convert offline.
The advertiser pays only when results matter, or they shouldn't be paying at all.
Pacing is smart, but unpredictable
If your daily budget is inconsistently spent, don’t panic. Platforms front-load or back-load delivery based on when users are likely to convert.
Evaluate spend not by how evenly it’s used, but by how efficiently it aligns with performance. This is core to any digital marketing strategy.
Mismatched URLs can erode trust before a click
Long, cryptic, or misaligned display URLs reduce trust, especially in text ads and display ads. Worse, they impact landing page quality and ad relevance before a user even engages.
A clean, human-readable URL isn’t just cosmetic. It’s a trust signal.
Headlines are your best shot
Headlines drive intent alignment in responsive formats. With Responsive Search Ads, your ad rotation relies on automation. But if headlines lack relevance or clarity, even the smartest rotation fails.
High performers lead with benefit-led language. Think: ‘Free next-day delivery’ not ‘Explore our features.’
Impressions are not performance metrics
A high number of impressions on the Google Network Site or display network doesn’t mean your campaign is working. It just means your ad was shown. Measure impact through clicks, conversions, and audience actions.
Match types control scale, not just relevance
Choosing exact match, phrase match, or broad match determines not only who sees your ad, but how much data the algorithm gets to work with. Smart advertisers also leverage dynamic keyword insertion and aggressive negative keywords to improve targeting precision.
Landing pages must carry the conversion weight
Your landing page quality directly influences your cost per click (CPC), conversion rate, and Quality Score. If your ad copy sets expectations your landing page can’t meet, or if the page loads too slowly, you’re likely to pay more and convert less.
Success hinges on the 3 Cs of Conversion Readiness:
Clarity – Is the offer immediately obvious? Are your headlines, call-to-actions, and layout straightforward and easy to understand?
Consistency – Does the landing page reflect the promise made in the ad? Do your visuals, messaging, and keyword intent align from click to conversion?
Credibility – Can the user trust you? Testimonials, security badges, brand mentions, and clear privacy policies reinforce reliability.
Customising pages to match search intent isn’t optional. It’s fundamental. High-performing landing pages don’t just support the ad. They complete the promise. Learn more about when to use a landing page.
The search terms report is where the truth lives
Your search terms report reveals what users actually typed when they saw your pay per click ad. If you’re spending money on irrelevant queries, that’s not a targeting issue. It’s a visibility problem. Fix it here.
Performance Max automates broadly, but still needs direction
Performance Max campaigns consolidate every Google Ads feature: Search, Display ads, Video ads, Image ads, Dynamic ads, Responsive Search Ads, and even platforms like Gmail and YouTube into one powerful system. It’s a cornerstone of modern digital marketing strategy, especially for advertisers seeking reach and efficiency.
But while Performance Max excels in automation, it can’t replace sharp human input. Without well crafted ad text, audience signals, strong landing page quality, and a clear conversion tracking setup, it may deliver impressions but fall short on click-through rate or return on ad spend.
You gain scale, but sacrifice manual control over key levers like ad rotation, ad scheduling, and keyword match types. Automation must be guided with intent.
What you gain vs. what you give up in Performance Max
What you gain:
- Broad reach across Google Display Network and search engine marketing
- Automated optimisation across search engine results pages
- Access to Facebook Dynamic Ads, Instagram Ads, LinkedIn Ads
- Easier scaling of dynamic keyword insertion and online advertising
What you lose:
- Channel-specific control and search network focus
- Granular ad targeting and asset-level insights
- Manual management of pay-per-click advertising
- Visibility into how each text ad or format performs
First-party data is now your primary advantage
With third-party cookies disappearing, online advertising now hinges on what you own: CRM lists, hashed emails, and platform integrations. Use tools like Google Ad Grants, Instagram Ads, and LinkedIn Ads to plug first-party data directly into platform learning.
Closing thought: PPC is now a prediction engine, not a media buy
Forget just showing up. Search Engine Marketing is about learning. Today’s paid ads should be part of a live feedback loop, where user behavior, performance data, and business outcomes inform every next move.
If your campaigns aren’t teaching you something, they’re wasting your budget. And if you still treat PPC as ad buying, you’re already behind. This is behavioral science at scale: every impression, click, and conversion should sharpen your future strategy.
You may also be interested in our blog Popular Terms in PPC Marketing Explained. which further unravels the mystery of PPC marketing acronyms and terms!
Get to know h2o. We don’t just run campaigns. We help you extract meaning from your PPC data and turn it into action. Whether you’re stuck in keyword chaos or trying to scale smarter with automation, we’ll help you make sense of the signals.
Let’s turn your ad spend into strategic insight. Get in touch.