Spending on Google search ads increased 13% year over year in Q4 2025, up from 10% in Q3, based on Tinuiti’s latest benchmark report. Advertiser click-through growth reached its strongest level since early 2021, while average CPCs declined slightly for the second quarter in a row. AI-driven results continue to increase the volume of all queries, including commercial searches.
Why do we care. Google search ad clicks are increasing while CPCs remain flat, a trend fueled in part by Amazon pulling back from US Google Shopping auctions. Marketers see both opportunity (CPC is very stable) and disruption as usage patterns change across searches and purchases.
Additionally, the growth of AI-driven queries is expanding the search funnel, providing more opportunities to reach customers earlier in their purchase journey.
Shopping ad trends: Google Shopping ad usage increased 16% year-over-year as Target and Walmart increased during the holiday season. Amazon’s absence has left a void in auctions, while Shein and Temu have maintained a smaller, less prominent presence. CPCs for Shopping Ads remain weak, falling 1% year over year.
High performance. PMax campaigns accounted for 62% of total Google Shopping spend and 61% of sales, down slightly from last year but up from early 2025. Shoppable keywords, which include video and display, make up 39% of PMax spend, with YouTube video accounting for 13% of non-search impressions.
Text ads. Google text ad clicks hit a 19-quarter high, growing 9% year-over-year. Consumption increased by 11%, while CPC growth remained modest at 2%. Keyword CPC growth slowed to just 2% year-over-year, and the drop in CTRs was influenced by strong impression growth, likely influenced by AI-driven overviews of search results.
The growth of Microsoft search. Microsoft surpassed Google in the growth of paid search spending, with a 16% year-over-year increase in Q4, up from 12% in Q3. Click growth slowed to 10%, while CPCs increased 5%, as Amazon maintained its presence in the Microsoft Shopping list.
Amazon Advertising. Clicks on Sponsored Products on Amazon increased 23% year-over-year, despite average CPC falling 1%. Sponsored Brands saw lower spend growth (+2%) but lower clicks, while Sponsored Display usage fell 47%. Meanwhile, Amazon DSP spending increased 31% year over year, driven by offsite placements and premium placements like Prime Video ads.
Walmart trends. Sponsored products accounted for 89% of Walmart search spend, with conversions remaining high during the holiday season. The amount spent on advertising grew to 35% of the total, while 60% was allocated to managing off-site assets.
Video and broadcast ads. YouTube ad spend increased 13% year over year, impressions increased 38% and CPMs decreased 18%. Video now accounts for 66% of Google Demand Gen spending. Across all traditional broadcast platforms, Prime Video ad spend increased 31% from Q3 to Q4, surpassing Netflix in CPMs, while TV screens dominated traditional broadcast revenue but phones were key in direct response formats.
An important point. Google’s search and shopping landscape remains strong, with the growth of AI-driven queries and changing merchant participation creating both opportunity and complexity. Meanwhile, Microsoft and Amazon are improving their ad offerings, giving advertisers more ways to reach highly targeted audiences in search, display, and broadcast.
Dig Deeper. Digital Ads Benchmark Report Q4 2025
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