Short Answer: Yes, Google Ads are still worth it for e-commerce in 2025, but the strategies have evolved. Success today depends on how well you align AI-driven automation, product feed optimization, and SEO integration. Traditional keyword campaigns aren’t enough anymore because the best returns come from Performance Max, Shopping Ads, and unified data across channels.

Introduction: My Early Experience with E-Commerce Ads

When I worked for Home Controls, Inc., an e-commerce company that sells smart home products, I managed our Google Ads campaigns (then called AdWords). We consistently saw a strong ROI across branded campaigns, product text ads, and Shopping Ads. It was so effective it paid for my salary and then some.

That experience gave me a deep understanding of how intent-based advertising connects customers to products at the exact right moment. While the landscape has changed dramatically since then, from manual bidding to AI-powered automation, the foundation of profitable advertising remains the same: visibility, precision, and measurement.

And in 2025, the question “Are Google Ads still worth it?” is more relevant than ever. According to WordStream’s 2025 Google Ads Benchmarks, the average cost per click (CPC) has risen to $5.26, increasing year-over-year in 87 percent of industries. Yet despite higher costs, the average conversion rate (CVR) now stands at 7.52 percent, improving in roughly 65 percent of industries.

That contrast tells the real story: yes, clicks are pricier, but ads are also more efficient. For e-commerce brands that optimize their data and creative, Google Ads can still deliver a strong, scalable return.

Key Takeaways

• Google Ads remain highly profitable for e-commerce when backed by clean data and strong creative strategy.

• Despite higher CPCs, improved CVRs show ads are still delivering measurable ROI.

• Shopping Ads dominate retail ad spend and click share, making them essential for online stores.

• The best results come from combining paid visibility with organic optimization for full-funnel growth.

• AI Overviews add a new layer of visibility for advertisers already running strong campaigns.

Why E-Commerce Brands Still Invest in Google Ads

Despite the rise of social commerce and AI shopping assistants, Google Ads continue to dominate e-commerce performance marketing. Over 60 percent of product discovery still begins on Google Search or Google Shopping, where users have high intent to buy.

The dominance of Shopping Ads makes the case even clearer. According to DemandSage:

• Google Shopping Ads account for 76.4% of all retail search ad spend in the U.S.

• They drive 85.3% of all clicks across Google Ads and Shopping campaigns.

Even as Google introduces AI Overviews into more search results, Shopping Ads typically appear before or in place of AI-generated summaries, keeping them front and center for commercial queries. This visibility makes them a vital part of the buyer’s journey and a signal that paid shopping placements aren’t going anywhere.

For online retailers, Google Ads provide:

• Instant visibility in front of shoppers already searching for your products

• Dynamic visuals and pricing through Shopping Ads that influence decisions before a click

• Cross-platform reach via YouTube, Display, and Search campaigns that reinforce awareness and remarketing

Industries like apparel, home electronics, beauty, and supplements continue to thrive because paid search reaches users at the moment of consideration, not distraction.

How Google Ads Have Evolved for E-Commerce

In 2025, Performance Max has become the core campaign type for e-commerce. It combines Search, Display, YouTube, and Discover placements under Google’s AI-driven optimization system.

Key changes shaping success this year include:

• AI bidding where Google adjusts bids automatically based on conversion likelihood

• Dynamic creative optimization where ad headlines and visuals adapt to user behavior and device

• Feed quality as a ranking factor meaning product data accuracy now influences both ad visibility and AI Overview inclusion

For e-commerce brands, that means your Merchant Center feed is as important as your ad copy. The better your data, including images, GTINs, descriptions, and categories, the more likely your ads will appear in profitable placements.

Are Google Ads Profitable for Online Stores?

Profitability varies by niche, but success depends on precision, not just budget.

What drives the best ROI:

• Clean and complete product feeds

• Accurate conversion tracking in GA4 and Google Ads

• Smart remarketing for cart abandoners and past purchasers

• Optimizing for lifetime value (LTV), not just immediate clicks

Google Ads often outperform social platforms when the goal is direct sales. High-intent searches like “buy wireless doorbell online” or “best smart thermostat for Alexa” are far more conversion-ready than passive social audiences.

Google Shopping Ads vs AI Overviews: What E-Commerce Marketers Need to Know

In 2025, e-commerce advertisers aren’t just competing for clicks in search results anymore. They’re also competing for visibility inside Google’s AI Overviews, the generative summaries that appear above or alongside traditional listings. These overviews often blend organic content, product details, and paid ads into a single AI-driven experience.

According to SEO.com, the ads that appear in AI Overviews aren’t a new format. They’re existing Search or Shopping Ads that Google surfaces automatically when a query has commercial intent and your ads are relevant to the AI-generated summary. Ads can show up before, within, or after the overview text, but advertisers don’t have direct control over when or where they appear.

That makes AI Overviews both a challenge and an opportunity. You can’t create a separate campaign for them, but if your ads already perform well and meet Google’s quality signals, they’re eligible to appear in this new high-visibility space. The catch is that Google currently doesn’t provide specific reporting for AI Overview placements, so performance impact has to be inferred from broader campaign metrics.

How Shopping Ads Still Dominate the Paid Retail Landscape

While AI Overviews are changing how search looks, Google Shopping Ads remain the backbone of retail advertising. They’re still responsible for the majority of paid e-commerce performance. According to DemandSage:

• Google Shopping Ads account for 76.4% of all retail search ad spend in the U.S.

• They drive 85.3% of all clicks across Google Ads and Shopping campaigns.

Shopping Ads remain unmatched in visibility and intent alignment. They display product images, prices, ratings, and promotions directly inside search results, all of which feed Google’s algorithms with structured, trustworthy data. This data quality also helps your brand appear more frequently inside AI Overviews since Google relies on accurate, well-optimized product feeds to populate its generative summaries.

Shopping Ads vs AI Overviews: Key Differences

How to Prepare for Both

The best e-commerce marketers in 2025 aren’t choosing between Shopping Ads and AI Overviews. They’re preparing for both.

• Prioritize feed quality. Both systems rely on structured, accurate product data.

• Align ad copy with conversational search. Write titles and descriptions that match how users ask questions in natural language.

• Monitor campaign shifts. Look for changes in conversion rate or CTR that might indicate AI Overview exposure.

• Refine bidding and segmentation. Use Performance Max to automatically distribute spend across both placements.

In short, Shopping Ads deliver the volume, while AI Overviews add new visibility opportunities in a generative search world. Together, they represent Google’s evolving balance between transactional intent and AI-driven discovery, and smart e-commerce brands are optimizing for both.

Google Ads vs SEO: Which Performs Better in 2025?

There’s no longer a clear winner between SEO and PPC because the two now complement each other. For a deeper look at how these channels compare, check out this breakdown of whether SEO is better than PPC in 2025.

• SEO builds long-term visibility and trust, helping brands appear in AI Overviews and organic listings

• Google Ads capture customers ready to buy right now

• Together, they form a Unified SEO + SEM strategy that dominates visibility across both organic and paid spaces

In 2025, Google frequently merges these surfaces. AI Overviews, Shopping listings, and paid placements often appear together. Brands leveraging both earn twice the exposure and deeper user insights.

How to Maximize E-Commerce ROI with Google Ads

1. Optimize your product feed. Include detailed attributes, clear pricing, and accurate GTINs.

2. Use Performance Max with audience signals. Give Google a clear starting point based on your ideal customers.

3. Track the right metrics. Import GA4 events and focus on ROAS, LTV, and conversion rate, not just clicks.

4. Invest in remarketing. Target users who viewed products or abandoned carts.

5. Enhance with Merchant Promotions and product ratings. Visual trust factors boost click-through rates and conversions.

When you combine feed optimization, smart automation, and proper tracking, your campaigns do more than drive clicks. They drive sustained profit.

Common Mistakes That Hurt E-Commerce Ad Performance

• Using incomplete or inaccurate product data in feeds

• Ignoring negative keywords that waste spend

• Letting automation run unchecked without reviewing reports

• Sending users to slow or confusing checkout pages

• Treating Google Ads as a “set it and forget it” channel

Automation is powerful, but it still requires human oversight to catch inefficiencies and protect your margins.

FAQs

How much should an e-commerce store spend on Google Ads?
Start with around 10–20 percent of monthly revenue or a test budget between $1,000 and $5,000, adjusting based on proven ROAS.

Do Google Shopping Ads still work in 2025?
Yes, they’re integrated into Performance Max and responsible for the majority of clicks and spend across retail campaigns.

How does AI improve ad performance?
AI refines targeting, adjusts bids, and tests creative variations, but human feed optimization still drives quality results.

Are Google Ads better than Meta Ads for online stores?
They serve different goals. Meta builds awareness and discovery, while Google captures high-intent buyers. Successful brands use both.

Conclusion: Smarter Ads for Smarter Shoppers

Google Ads are still worth it for e-commerce in 2025, just not in the same way they were a few years ago. Manual campaigns have given way to AI-assisted strategies that rely on clean data, dynamic content, and connected analytics.

If your product feeds, tracking setup, and creative assets are aligned, your ads can generate consistent sales while feeding valuable insight back into your SEO and content strategy.

Want help optimizing your product feed and ad campaigns for 2025? Contact me to build an AI-first e-commerce ad strategy that actually converts.