SEM and Google Ads trends 2027:7 shifts in search ads

1. AI Max for Search becomes the default Search campaign

From February 2027, Google upgrades campaigns that use Dynamic Search Ads (DSA) to AI Max for Search automatically^[4], and campaign-level broad match and automatically created assets have been upgrading since September 2026^[5].

Is AI Max mandatory in 2027?

Not as a separate campaign type, but the upgrades are automatic. AI Max is a set of features on your existing Search campaigns^[6]. Google upgrades DSA campaigns from February 2027^[4], and you can still adjust the individual features^[6].

What does Google say AI Max does to results?

Google says AI Max for Search campaigns see an average of 7% more conversions or conversion value at a similar CPA or return on ad spend (ROAS)^[5]. That’s Google’s own 2026 data, for non-retail advertisers. Treat it as a hypothesis, and test it on your own account.

Does Microsoft have the same feature?

Yes. Microsoft announced on 27 August 2026 that AI Max for Search is available to all advertisers^[7]. In early tests, advertisers saw at least an 8% increase in conversions, in an analysis of 44 A/B experiments that kept bid strategy and campaign budget the same^[7]. If you’re using Google Import, AI Max settings can now be carried over from Google Ads^[7]. Read the 8% as a reason to test in a Singapore or Malaysia account.

Who should act on this?

Any account still running DSA, campaign-level broad match or automatically created assets. One limit: final URL expansion can send paid traffic to old or weak pages, so clean the site or exclude those URLs first. The guide to keyword match types shows how broad match behaves.

2. Ads move inside AI answers, on Google, Microsoft and ChatGPT

Google announced in May 2026 that it is testing Conversational Discovery ads and Highlighted Answers in AI Mode, clearly labelled “Sponsored”^[8].

Where do ads show in Google’s AI answers?

Mostly in tests for now. AI Overviews has over 2.5 billion monthly active users and AI Mode has passed 1 billion^[9]. Google says it is launching AI-powered Shopping ads, and that in the coming months it is bringing two new ways to give people real-time product advice on Search^[8]. In a survey Google commissioned from Ipsos in December 2025, 75% of 13,189 online shoppers in 25 countries who use AI Overviews or AI Mode for shopping said they make faster, more confident decisions using AI Mode^[8]. Read that as Google’s claim across 25 countries. Test it in your own Singapore or Malaysia account.

Can a Singapore or Malaysia business advertise in ChatGPT?

Yes. PPC Land reports that OpenAI announced on 23 September 2026 that ChatGPT Ads were rolling out to seven Asian markets, including Singapore and Malaysia^[10]. Ads show only to users on the Free and Go plans^[10]. You can buy through OpenAI’s sales team, a partner or the self-service Ads Manager, and access depends on where the buyer is incorporated. Where the audience sits does not decide it^[10].

What about Microsoft Copilot?

Don’t count on Copilot reach yet. In its June 2026 post, Microsoft says “AI Max and PMax are the most effective ways to make sure you’re capturing relevant intent”^[11]. The post doesn’t say that ads serve on Copilot surfaces, so check where your ads show first.

Who should act on this?

Lead-generation businesses whose buyers research before they enquire. One limit: the clicks that remain are fewer when an AI summary appears. Pew found users clicked a result link in 8% of visits with a summary and 15% without one, in a March 2025 study of 900 adults in the United States^[12]. Pew’s figures come from the United States, so treat them as a direction for Singapore and Malaysia.

3. Smart Bidding now spends to the target you set

Since 17 August 2026, Google has updated its bidding systems, so campaigns that are limited by budget and use a target-based bid strategy perform more consistently^[1].

Why did my CPA go up after August 2026?

Most likely because Google now spends up to the target you typed. Google’s own example is a Target CPA of US$10 that had been achieving US$5^[1]. App, Video reach and Video view campaigns keep their previous bidding behaviour^[1]. A higher CPA after that date isn’t a failed campaign. Check the target first, then decide whether to keep it, lower it or switch strategy.

Which bidding features are worth turning on?

Start with the ones tied to leads. Google says Search campaigns using Smart Bidding Exploration see 27% more unique converting users on average, based on its own data for Search text ads from 1 January to 20 February 2026^[13]. That isn’t a Singapore or Malaysia figure, so check it in your own account. Journey-aware bidding, in beta, learns from phone calls, form submissions and newsletter sign-ups^[13]. Campaign total budgets cut manual budget adjustments by 66% on average, Google says^[13].

Who should act on this?

Every account with a target-based bid strategy and a budget that runs out.

4. Conversion tracking and first-party data decide what the AI optimises toward

Google confirmed in April 2025 that Chrome keeps its current approach to third-party cookie choice and won’t roll out a new standalone prompt^[14].

What does good tracking look like in practice?

It follows a lead from click to sale. In a 2Stallions case study, every lead for a US healthcare compliance software provider was attributed to its platform, campaign and keyword, and qualified within seven days of entering the funnel^[15]. Over three months, leads rose 45% (1,155 more), cost per lead fell 28% and return on ad spend reached 723%^[15].

That programme began with search, display and social ads, so it shows what tracking makes possible. It says nothing yet about AI Max. Read the case study.

A fixed date makes the measure plain. On Google Ads, we ran lead generation for an education institute and sold out its event two weeks before the due date, under budget.

Do I still need to plan for the end of third-party cookies?

No. Chrome keeps third-party cookie choice^[14], so waiting for cookies to die isn’t a plan. The trend is the data you own: your tracking, your CRM and your consent records. Check the privacy rules for your market, and ask a legal adviser about the details.

Who should act on this?

Any business whose leads close offline or weeks later. A low cost per lead means little if the sales team can’t close those leads. Tracking fixes take developer time, so book it before the February deadlines in trend 6.

5. Agentic assistants join the ad account, and a person still approves

Google’s Ask Advisor, built on Gemini, is in beta and makes suggested changes once you approve them^[16].

What can Ask Advisor do today?

It can identify areas for improvement, troubleshoot and apply changes with your approval, and it isn’t available in manager accounts^[16]. Google announced it as Ads Advisor in November 2025, coming to English-language accounts that December^[17]. At Google Marketing Live in May 2026, it described one Gemini agent across Google Ads, Google Analytics, Merchant Center and Google Marketing Platform^[18].

What does Microsoft’s Copilot do in the ad platform?

Microsoft says Copilot in the Advertising Platform explains why performance spiked or dropped, and checks that your Universal Event Tracking (UET) tags and conversion goals are set up correctly^[19].

Who should act on this?

Teams without a dedicated analyst. One limit: an assistant optimises for what it can see. It can’t see whether a lead became a client unless you send that back (trend 4).

6. Google tidies the account: the deadlines you cannot skip

Google stopped supporting new call-only ads in January 2026, and existing ones stop serving in February 2027^[20].

• Call-only ads: existing ones stop serving in February 2027^[20]. Replace them with responsive search ads that use call assets.
• Smart campaigns: new ones can’t be created from 23 September 2026^[20]. Plan standard Search campaigns instead.
• Language targeting: no longer supported for Search, AI Max for Search and Performance Max on Google Search from September 2026. Ads match on the language of your ads and landing pages^[20]. An account that runs English, Malay and Chinese needs ads and pages in each language.
• Dynamic Search Ads: upgraded to AI Max from February 2027 (trend 1)^[4].

Which deadlines hit a Singapore or Malaysia account first?

Smart campaigns went first, on 23 September 2026, and language targeting followed in September 2026^[20]. Language targeting matters most for accounts that reach English, Malay and Chinese speakers, because each language now needs its own ads and pages. Call-only ads and Dynamic Search Ads follow in February 2027^[20][4].

Where do I check for the next change?

Start with Google’s own help pages and the Google Ads API deprecations page^[20]. Read the live page in the week you act.

Who should act on this?

Anyone with call-only ads, Smart campaigns or multilingual targeting.

7. Microsoft Advertising earns a test next to Google

Microsoft announced on 27 August 2026 that AI Max for Search is available to all Microsoft Advertising advertisers^[7].

What is new in Microsoft Advertising for 2027?

Microsoft says advertisers using its Performance Max see an average 8% increase in incremental conversions, based on its own global data from September 2024 to September 2025^[19]. It has also added new customer acquisition goals and announced a pilot of term exclusions^[19]. LinkedIn profile targeting for job seniority is in pilot in the United States and Canada^[19], so don’t plan around it in Singapore or Malaysia yet. The 8% is Microsoft’s global figure, so test it on one campaign first.

Why test Microsoft next to Google?

A small test shows how your own leads respond on a second search engine. Microsoft’s own case, in its June 2026 post, is that “AI Max and PMax are the most effective ways to make sure you’re capturing relevant intent”^[11].

Who should act on this?

B2B and professional services advertisers whose buyers work on Windows and Edge.