Spending on Google search ads rose 13% year over year in Q4 2025, up from 10% in Q3, based on Tinuiti’s latest benchmark report. Click growth for advertisers hit its strongest rate since early 2021, while average CPCs declined slightly for the second consecutive quarter. AI-driven results continue to expand overall query volume, including commercial searches.
Why we care. Google search ad clicks are surging while CPCs remain flat, a trend fueled in part by Amazon stepping back from U.S. Google Shopping auctions. Advertisers are seeing both opportunity (CPC mostly stable) and disruption as spend patterns shift across search and shopping.
Additionally, AI-driven query growth is expanding the overall search funnel, offering more opportunities to reach customers earlier in their buying journey.
Shopping ad trends: Google Shopping ad spend climbed 16% year over year as Target and Walmart stepped up during the holiday season. Amazon’s absence left a void in auctions, while Shein and Temu maintained smaller, less prominent presences. CPCs for Shopping Ads remained weak, falling 1% year over year.
Performance Max. PMax campaigns accounted for 62% of total Google Shopping spend and 61% of sales, slightly down from last year but up from earlier in 2025. Non-shopping inventory, including video and display, made up 39% of PMax spend, with YouTube video accounting for 13% of impressions outside of search.
Text ads. Google text ad clicks hit a 19-quarter high, growing 9% year over year. Spend rose 11%, while CPC growth stayed modest at 2%. Brand keyword CPC growth slowed to just 2% year over year, and declining CTRs were offset by strong impression growth, likely influenced by AI-driven overviews in search results.
Microsoft search growth. Microsoft outpaced Google in paid search spend growth, with a 16% year-over-year increase in Q4, up from 12% in Q3. Click growth slowed slightly to 10%, while CPCs rose 5%, as Amazon maintained its presence in Microsoft Shopping listings.
Amazon advertising. Sponsored Products clicks on Amazon rose 23% year over year, despite average CPCs declining 1%. Sponsored Brands saw modest spend growth (+2%) but declining clicks, while Sponsored Display spend fell 47%. Meanwhile, Amazon DSP spending rose 31% year over year, driven by offsite inventory and premium placements like Prime Video ads.
Walmart trends. Sponsored Products accounted for 89% of Walmart search ad spend, with conversions remaining elevated through the holiday season. Display ad spend grew to 35% of total, with 60% allocated to offsite inventory targeting.
Video and streaming ads. YouTube ad spend increased 13% year over year, with impressions up 38% and CPMs down 18%. Video now accounts for 66% of Google Demand Gen spending. Across traditional streaming platforms, Prime Video ad spend surged 31% from Q3 to Q4, surpassing Netflix in CPMs, while TV screens dominated traditional streaming spend but phones were critical for direct-response formats.
The bottom line. Google’s search and shopping ecosystems remain resilient, with AI-driven query growth and shifting retailer participation creating both opportunities and complexity. Meanwhile, Microsoft and Amazon are evolving their ad offerings, giving advertisers multiple avenues to reach high-intent audiences across search, display, and streaming.
Dig Deeper. Digital Ads Benchmark Report Q4 2025
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