Google just posted its first positive agency performance trends in six quarters. Worth a closer look.
What’s improving:
✅ Search ROI is stabilizing
✅ CPCs are inflating predictably
✅ AI Overviews are boosting conversion rates
✅ YouTube still trending up, especially via Shorts and CTV
Instead of cannibalizing traffic like everyone predicted, AI overviews are improving it. Agencies are seeing better conversion rates on users coming from AI-generated snippets.
Oh, and ChatGPT’s “threat”? Minimal impact…different use case, no ads yet, Google engagement holding steady. Smart brands aren’t treating it as a near-term risk.
Mixed results from AI MAX. Not surprising. But most clients still want in. That says more about the roadmap than this quarter’s ROI.
What’s limiting Google right now? Not AI. Meta. Social platforms are outperforming on ROAS and taking budget. That’s the real competitive pressure.
The takeaway for DTC brands in your portfolio is this: Google’s getting back on stable footing. If you’ve pulled back spend, this might be the time to re-evaluate.
Seeing similar trends? Or still skeptical? Let’s compare notes.