Google Boosts Commerce Media with New AI Tools – June 20, 2025

Google has enhanced its commerce media suite with AI-powered tools tailored for platforms like Search, YouTube, and Display & Video 360. This evolution aims to optimize marketing campaigns for brands and retailers, making commerce media integral to digital marketing’s future. By 2029, it is projected that commerce media will account for nearly 25% of U.S. advertisers’ digital budgets, amounting to $118.4 billion, with a 15.3% compounded annual growth rate from 2025 to 2029. The sector is expanding beyond consumer packaged goods (CPG) to diverse industries like finance and healthcare, integrating ads seamlessly into customer experiences. Nearly half of advertisers plan to increase spending in commerce media, indicating a strategic pivot towards performance and off-site audience targeting. Google also introduced features for improved self-service options and launched pilots for product-level measurement, supporting a mix of ad formats to enhance engagement and ROI across digital and physical spaces, signaling potential for significant growth.

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