Google’s AI Max for Search drives 15% search budget increases and CPC rises one year after launch, agencies report

In the 12 months since Google launched AI Max for Search, brands have increased their search budgets by as much as 15%, with cost-per-clicks rising 10-15% on average and as high as 25% for some clients, according to four media buyers who spoke with Digiday. AI Max generates target keywords and queries using a brand's chosen landing page, creative, and keywords as inputs, replacing keyword-based auctions with an intent-anchored market that Google claims leads to an average 7% increase in conversions. The rise in CPCs is likely a consequence of increased competition between advertisers, with Adthena estimating that the number of advertisers participating in search ad auctions has increased 35% year-on-year. AI Max is also the gateway to running ads in Google's AI Mode or adjacent to its Overviews, with Google telling Modern Retail that some brands credited an 80% sales uplift to AI Max ads in those environments.