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Google is making major changes to its ad platform in 2027. Starting in February, Google Ads will automatically upgrade Dynamic Search Ads campaigns to AI Max and bring ad campaigns to AI-powered search experiences like AI Mode. Catalyst IQ has been tracking what’s changing, what it means for car dealerships, and which questions dealers should ask their marketing partner. |
Google is making some of its biggest changes to digital advertising.
AI is taking on more of the work behind Search campaigns, from finding relevant shoppers to adjusting ad messaging and deciding which page someone should see after they click. Google is also creating new opportunities for advertisers to reach people directly within its AI-powered search experiences.
Some of these changes are already underway. Others will become more important in 2027.
For automotive dealers, now is a good time to look at your car dealership digital marketing strategy and make sure it's keeping pace.
Google Search campaigns have traditionally relied heavily on keywords chosen by the advertiser. AI is giving Google more flexibility to look beyond those keywords and use additional signals to determine when an ad could be relevant.
AI Max for Search campaigns is a big part of that shift. In February 2027, Google will begin automatically upgrading campaigns using Dynamic Search Ads to AI Max.
AI Max can expand beyond existing keywords to find additional relevant searches, adjust ad copy based on what someone is looking for, and select a landing page that better matches the search. Advertisers also have controls for things like brands and locations.
If your dealership uses Dynamic Search Ads today, February shouldn't be the first time you think about AI Max. Talk with your marketing team about what you're using now, what will change, and whether there are opportunities to test AI Max ahead of the transition.
The Google search page is changing, too.
Shoppers can use AI Overviews and AI Mode to ask longer, more specific questions and get information organized around what they're trying to find. Google is building advertising into these experiences and testing formats designed specifically for AI Mode.
That is creating new possibilities for automotive digital advertising. Instead of searching something short like "used SUV near me," a shopper could ask Google for an SUV that fits three kids, handles well in snow, and falls within a certain budget.
Those detailed searches give Google more context about what the shopper needs. Dealers need campaigns that are prepared to reach people as this type of vehicle research becomes more common.
Ask your marketing partner whether your current campaigns are eligible to reach shoppers in Google's AI experiences and how they're evaluating new advertising opportunities as they become available.
As Google takes on more campaign decisions, your strategy needs to be grounded in what’s happening at your dealership and across your market right now.
That’s where Catalyst IQ has an advantage. MarketAI, our real-time data platform, tracks inventory, pricing, demand, sales, and competitive activity to give our automotive experts a clear view of where the strongest opportunities are. They use that intelligence to determine which inventory needs support and where your budget can make the biggest impact.
You don't need to know every technical detail behind AI Max or every new Google Ads feature. But you should know what your campaigns are doing.
As you plan for 2027, ask your marketing partner:
Google is only part of what's changing.
Our upcoming 2027 Automotive Retail Outlook report takes a closer look at the AI-driven advertising changes dealers need to have on their radar, including what's coming from Google and Meta and the questions dealers should be asking their marketing partners now.
The report launches December 2. Sign up below to get it when it's released.
One of the biggest confirmed changes is the move from Dynamic Search Ads to AI Max. Beginning in February 2027, Google will automatically upgrade campaigns using Dynamic Search Ads to AI Max, which uses AI to expand search reach, customize ad messaging, and direct shoppers to relevant landing pages. Google is also expanding advertising within its AI-powered Search experiences and developing new ways for advertisers to reach people as they use more conversational searches.
Yes. Google is integrating advertising into its AI-powered Search experiences and developing formats designed for increasingly conversational searches. Eligibility depends on the campaign and format, so dealers should review their current Google Ads setup with their marketing partner.
Dealers don't necessarily need to wait until 2027 to evaluate it. Google Ads currently allows advertisers to test AI Max through experiments before applying it across a campaign. That gives dealerships and their marketing partners an opportunity to evaluate performance and determine where it makes sense for their strategy.
About Catalyst IQ
Catalyst IQ is an automotive marketing agency that helps dealerships make smarter decisions and sell more cars using real-time data, AI-powered insights, and human support. From digital advertising and websites to SEO/AEO and lead capture, every solution drives growth.