Swipe Right on the Hottest February Media Updates

Welcome to the sixth edition of our ad ops-themed newsletter! Love may be in the air this month, but advertisers are feeling more chills than thrills as AI shakes up the digital marketing landscape. From Google’s AI-powered search updates giving paid and organic CTRs the cold shoulder to Meta’s ad prices heating up amid TikTok uncertainty, there’s no shortage of news to swoon over (or stress about). So, grab some heart-shaped treats, bundle up, and let’s dive into the latest ad ops updates before things get any frostier!

In the News

Google Ads plans major AI Push in 2025, reshaping search marketing

Google Ads is preparing for a significant transformation in 2025, integrating artificial intelligence (AI) to revolutionize consumer search and advertising. Brendon Kraham, Vice President of Global Search Ads and Commerce, describes this shift as a "seismic shift" in consumer search behavior, with AI playing a central role in how users discover information and interact with businesses. This change is expected to be more profound than the mobile revolution, signaling a fundamental shift in how advertisers will need to approach digital marketing.?

Google is focusing on three major areas to drive this transformation:

• Evolution of Search Behavior: Moving beyond traditional keyword-based searches toward multimodal experiences that incorporate voice, images, and other inputs.
• AI-Powered Creative Tools: Providing marketers with advanced tools to create more engaging and personalized ad content.
• Enhanced Measurement Capabilities: Offering improved analytics across all channels to better understand and optimize campaign performance.

These initiatives aim to fundamentally change how consumers discover products and services, requiring businesses to adapt their strategies to stay competitive.

Learn more here.

Google’s AI Overviews are Impacting Paid amp; Organic CTRs In a Bad Way

The AI Overview is a very helpful product Google has rolled out for users seeking answers to questions instantly without having to click through Paid or Organic links. As Google intends to push more AI in 2025, Brands and Advertisers are already seeing the negative effects it’s having on their CTR.?

According to an analysis by Seer Interactive, CTR across Organic is down nearly -55% year-over-year when AI Overviews appeared. Meanwhile, Paid ads saw a decrease overall whether AI Overview was shown or not.

So if you’re noticing a decrease in traffic and efficiency across your Paid and Organic efforts, just know you’re not alone, as AI Overview is here to stay and its impact is being felt across the board.

Learn more here.

“AI-Mode” is Being Tested on Google

Google is internally testing a new "AI Mode" for its search engine, aiming to handle open-ended and exploratory queries more effectively. This feature organizes information into concise summaries with links for deeper exploration, enhancing the search experience for complex questions. It's designed to assist with advice, comparisons, and follow-up inquiries, utilizing the Gemini 2.0 AI model. For example, a user could ask how electric, gas and induction stoves compare in terms of energy efficiency, cooking speed, and maintenance. This development could influence how users interact with search results and the subsequent traffic to websites.

Learn More here.

YouTube testing cost-per-hour masthead

YouTube is testing a new advertising model that allows brands to secure its prime ad space—the Masthead—on an hourly basis. This Cost-Per-Hour (CPH) Masthead offering grants advertisers exclusive visibility across all YouTube devices during selected timeframes, providing a strategic advantage for key marketing moments.

Key Features:

Exclusive Ownership: Advertisers can purchase specific hours leading up to, during, or after significant events, ensuring complete ownership of eligible Masthead impressions across desktop, mobile, connected TV, and tablet devices.

Enhanced Flexibility: This model complements YouTube’s existing Cost-Per-Thousand Impressions (CPM) Masthead offering, giving brands more control over their advertising strategies and budgets.

Potential Applications:

• Major Product Launches: Secure prime placement during critical product unveilings to maximize awareness and engagement.

• Time-Sensitive Announcements: Ensure maximum reach for urgent communications, such as corporate updates or promotional campaigns.
• Holiday & Seasonal Campaigns: Capitalize on peak shopping seasons with targeted visibility at crucial moments.
• Livestream Event Promotion: Drive engagement for live events by ensuring high visibility at key times when viewership is highest.

What This Means for Advertisers

While YouTube has not disclosed specific pricing details, the flat cost-per-hour model offers a predictable and potentially more cost-effective budgeting approach compared to impression-based pricing. It also allows advertisers to align their campaigns with cultural moments, live sports, entertainment events, and other key timeframes to ensure maximum impact.

By offering greater precision in ad timing, this move highlights YouTube’s commitment to providing brands with more flexible and impactful advertising solutions. Advertisers interested in leveraging this new model should reach out to their YouTube representative for further details and availability.

Learn more here.

Changes In Meta’s Ad Prices Show Dollars Shifting There Ahead of TikTok Ban

As discussions of a potential TikTok ban in the U.S. continue, advertisers are reassessing their digital marketing strategies. Meta is already seeing increased ad spend, with rising cost-per-thousand-impression (CPM) rates suggesting brands are shifting budgets toward its platforms. If TikTok were to be banned, the digital ad landscape could see a significant shake-up.

Key Implications:

• Ad Spend Reallocation: With uncertainty around TikTok, advertisers are diversifying investments, funneling more dollars into Meta and other platforms to ensure continued reach.
• Brand & Creator Impact: Businesses that rely heavily on TikTok may need to pivot their marketing strategies, while creators face potential monetization challenges, making diversification across platforms crucial.
• Market Shifts: A ban could trigger a major redistribution of ad dollars, reshaping the competitive landscape for digital advertising.

What This Means for Advertisers

Advertisers should proactively explore alternative platforms and avoid over-reliance on any single channel. By staying adaptable and monitoring regulatory changes, brands can safeguard their digital marketing efforts and maintain audience engagement in an evolving landscape.

Learn more here.

Google’s Image AI Model Now Can Generate Humans? What a Time to be Alive

Google is rolling out AI-powered human image generation for ads using its Imagen 3 model. Advertisers can now create lifestyle images featuring people with customizable attributes like age, gender, and ethnicity—helping tailor campaigns more effectively. To prevent misuse, Google has safeguards in place, restricting brand-name products, public figures, minors, and explicit content. AI-generated images will also carry a SynthID watermark for transparency. This update streamlines ad production, cutting costs and time while offering more flexibility in creating diverse, targeted visuals.

Learn more here.

Vendor Updates

Meta Launching Ads on Threads

We knew it was coming but it is finally official - Meta has begun testing Threads ads providing yet another avenue for advertisers to reach the app’s 300 million active users.

• How does it work? It’s pretty simple - advertisers can add Threads to their campaigns’ reach by checking a box in Ads Manager. The test, available to a limited number of advertisers, will initially feature image ads between content in the home feed.?

• When will it be available for everyone? Meta intends to gradually expand the ad program, guided by user feedback and engagement insights

• Is it worth it?? With 300 million monthly active users and 3 out of 4 Threads users already following a business (per Meta’s data), advertisers will have access to a new, quickly growing platform without having to do much additional work to be there.?

Learn more here.

Meta Updates Advantage+ and Adds Leads Campaigns

Meta is enhancing its Advantage+ suite with AI-powered automation for campaign setup, streamlining the process for sales, app, and lead campaigns. A new Advantage+ leads campaign tool aims to improve lead quality and lower costs, with early reports showing a 10% drop in cost per qualified lead. Additionally, Meta is introducing an expanded opportunity score (0-100) to help advertisers optimize performance with actionable insights. These updates make advanced AI tools more accessible for advertisers of all levels.

Learn more here.

Google Display & Video 360 API gets major update

Google has rolled out an important update to its Display & Video 360 API, offering advertisers more flexibility in managing campaigns. The update introduces new audience targeting options, improved reporting tools, and the ability to automate campaign creation and management at scale, which streamlines workflows. It also enhances integration with other Google services, making it easier for advertisers to consolidate data and optimize campaigns across platforms. The update is available now and will roll out gradually with more features over the coming months. For businesses looking to streamline their processes and optimize digital advertising strategies, this update provides valuable tools to improve campaign performance and ad targeting, saving both time and resources.

Learn more here.

Live, laugh, launch campaigns.?

– Arm Candy Ad Ops Team