Rare Beauty employed AI-powered YouTube and Search strategies to reach Gen Z audiences, resulting in a sevenfold return on ad spend.

Google is launching a suite of new AI-powered tools and features aimed at enhancing performance marketing, including smarter insights in Google Merchant Center, expanded creative options in Product Studio, generative AI in Asset Studio, and automated budget management across campaigns to optimize holiday results.

Consumers are researching and purchasing over longer periods, prompting retailers to appear earlier, stay visible longer, and employ smarter strategies to capture demand.

Google is developing text guidelines to help create brand-safe, high-performing ad copy for AI Max and Performance Max campaigns, ensuring they meet business standards.

L'Oréal doubled its conversion rates and reduced costs per conversion by 31% using AI Max to identify new search opportunities.

Adopting these AI and data-driven strategies enables retailers to deliver personalized experiences, maximize value throughout the customer journey, and capitalize on the holiday season.

U.S. impulse buying has decreased from 30% to 26%, as consumers conduct more research and utilize AI tools for answers, reflecting a shift toward more deliberate purchasing.

Brands like Nike are using AI-driven bidding strategies that dynamically adjust ad spend based on user signals, often achieving ROAS over 5x, while smaller retailers benefit from automated campaigns like Smart Shopping.

The platform now offers shoppable YouTube Masthead ads, allowing brands to showcase specific products directly within the ad, aligning with business goals.

Sephora is leveraging personalized ads based on customer loyalty tiers, which have increased click-through rates by 20% and boosted customer engagement.

Retailers like ba&sh are adopting omnichannel strategies, focusing on store visits, which have led to increased revenue both online and offline, with ROAS improving by 8.5%.

In response to privacy concerns, retailers are emphasizing first-party data, contextual targeting, and privacy-compliant tools, while exploring AI visual search and loyalty integrations to boost engagement.

Consumers are condensing their shopping into three months to manage budgets, increasingly using AI-enabled tools like YouTube, Search, and AI Mode for longer, conversational queries.