SEM & Paid Social Ad Platform Updates for Q2 2025
We saw major shifts across SEM and Paid Social Ad platforms during 2025's Q2. From Google’s push toward Performance Max transparency, to Microsoft’s AI-driven search evolution, to Meta’s new bidding and creative automation tools, the landscape continues to evolve.
USIM has reviewed these developments to determine which updates matter most for advertisers.
This white paper outlines the updates, their implications, and our recommendations to keep your campaigns efficient, transparent, and future-ready.
TL;DR: Our picks for the most relevant and impactful features:
- Google Ads Channel Reporting in Performance Max
- Meta Value Optimization (tROAS) Bidding
Google Ads Updates
Google Ads Channel Reporting in Performance Max
What's the Update
Google is testing channel-level reporting (search, display, video, etc.) in Performance Max (PMax), now in limited rollout to large advertisers.
There are also updates to targeting, reporting and further visibility:
- Google says it finds the best conversions at the lowest CPA across channels (e.g., Search $2 CPA, YouTube $8 CPA, Display $7 CPA).
- Support for up to 10k negative keywords at campaign level.
- "Source" insights for search theme performance.
- Usefulness indicator under asset groups.
- New retention goal option (likely requires automated CRM data).
- Device and age exclusions now possible.
Why It Matters
Channel-level data improves transparency and optimization insights, although there is still no control over individual channel spends. New targeting and creative features could help maximize conversions and ROAS. The ability to exclude devices/ages and add negative keywords offers more control, but it is minimal compared to separate campaigns per channel.
USIM Recommendations
- Run and review channel reports as they become available.
- Keep using scripts for channel data until full rollout.
- Update creatives with video assets to capture Google’s reported 12% lift in conversions.
- Use reCaptcha to filter bots.
- Include creatives in all sizes and formats
- Retention goals and usefulness indicators can be used toward the still limited adjustment options.
Google Ads Parked Domains Exclusion
What's the Update
Between April and July 2025, Google began automatically excluding parked domains at the account level across Display Network, Video Partners, and Search Partner Network. A parked domain is now opted out by default. No more manual exclusion needed.
Note: USIM already excludes the Search Partner Network (which is ~99.9% parked domains), so this broader change reinforces the existing setup.
Why It Matters
Parked domains are low-quality, often fraudulent sites that inflate ad spend without delivering conversions. Auto-exclusion helps reduce impressions from low-quality sites, wasted clicks and spend, misleading conversions, and higher cost per conversion in campaigns that previously used Search Partners.
USIM Recommendations
- No changes needed, as most USIM-managed search campaigns are excluded from the entire Google Search Partners Network.
- Google does not report search partner URLs, so there’s no method to verify this, other than checking for decreased volume from Search Partners in any campaigns opted-in.
Google Ads Demand Gen Features
What's the Update
Beginning in March 2025, Demand Gen campaigns now include channel-level controls. Advertisers can choose between YouTube, Discover, Gmail, and the full Google Display Network (previously "Video Partners") at the ad group level.
As of April 2025, creating new Video Action Campaigns is no longer possible and existing ones will be auto-upgraded to Demand Gen beginning in July 2025.
Why It Matters
Channel control provides more tactical flexibility, and any Video Action YouTube campaigns will be auto-upgraded to Demand Gen.
USIM Recommendations
- Existing video action campaigns auto-upgraded to Demand Gen will run as before, no change to delivery or placements, as their creative assets are limited to video.
- In the future, we will utilize Demand Gen to run any video campaigns that are auto-bid for conversions.
Microsoft Ads Updates
AI-Powered Search Transforms Ad Strategy
What's the Update
Search is now dynamic, multi-modal, and personalized (text, voice, image queries). Ads must shift from static keywords to AI-driven targeting and rich content. Early adopters are seeing an average of 15% higher conversions (per MSN), and this is mostly for ecommerce.
Why It Matters
Modern users expect conversational, helpful experiences. Brands using AI/ML to match natural queries and deliver contextually relevant information can effectively boost ROI.
USIM Recommendations
- Consider testing conversational keywords and broad match types, but we can also review search term reports to gauge current conversational query volume.
- Leverage Microsoft AI tools like Performance Max and automated bidding.
- Monitor chat/voice trends and adjust bids/budgets.
- Also note that there are no options nor reporting to control or see volume of delivery in AIOs, in Co-Pilot, other AI search experiences.
Microsoft Copilot Boosts Ad Relevance & Conversions
What's the Update
MSN says Copilot ads are about 25% more relevant and drive an average of 53% higher purchase rates within 30 minutes, claiming that the AI chat format accelerates the path to purchase. Again, this is mostly related to ecommerce.
Why It Matters
Higher relevance equals faster conversions. Copilot placements drive strong lifts in engagement and sales.
USIM Recommendations
- Make ad copy more conversational and question-focused.
- Increase budgets by ~10-20% to secure Copilot spots, though this can’t be reported nor controlled.
- Use automated campaign features to generate variants and reach Copilot users.
Prioritize Desktop & AI-Ready Experiences
What's the Update
86% of Microsoft search traffic is desktop with desktop users converting 52% better, and are on average 19-20% more likely to click or add to cart. Microsoft urges fast, clear, AI-optimized sites with low CLS and strong trust signals.
Why It Matters
Slow or messy pages hurt AI and traditional ad performance. Desktop drives more in-depth shopping,and the strong performance here reinforces the need for seamless user experiences.
USIM Recommendations
- MSN recommends shifting budgets and bids toward desktop, yet most campaigns use automated bidding which should handle this for advertisers if greater performance from computers is available.
- Optimize page speed and fix layout shifts (CLS ≤ 0.1).
- Add trust signals (reviews, clear branding) and easy navigation.
Meta Ads Updates: Facebook, Instagram & WhatsApp
Live Partnership Ads
What's the Update
The new ad format allows advertisers to boost creator partners’ branded livestreams. Ads will be delivered in Feed and Reels placements to start, and expanded to other placements and platforms later.
Why It Matters
This gives advertisers new opportunities to collaborate with creators and influencers, and helps deepen consumers’ connections with the businesses and brands they love.
USIM Recommendations
- For interested clients, we can research collaboration options with influencers and creators.
Instagram Sitelinks Mobile Feed Ads
What's the Update
Sitelinks are now available in Instagram Mobile Feed Ads.
Why It Matters
Sitelinks were already available for Facebook Feed, and although IG Mobile Feed volume is much lower than FB Mobile Feed, it’s still a high percent of overall IG volume, so it’s a logical and valuable placement that boosts click-through options in a high-engagement environment.
USIM Recommendations
- If we’re already using sitelinks in Meta Ads, they’ll now show on this placement.
- If we have ads that could benefit from adding sitelinks, please inquire with Liquid Audience about adding them to the creative checklist. Note that most of our social ads direct to one specific page, which precludes us from using sitelinks.
Meta Incremental Conversions/Attribution
What's the Update
The Meta update featuring Incremental attribution is now available to all advertisers. This setting optimizes ad delivery for incremental conversions (conversions that Meta deems are directly a result from Meta ads, not those which would have occurred without Meta ads being seen and/or clicked).
Why It Matters
Meta reports that advertisers experienced a 46% average lift in performance. However, it does not define which metrics improved or explain why focusing solely on incremental sales would yield better results. This is especially important given that many Meta conversions come from view-through retargeting, which are unlikely to be fully incremental since other ad sources often contribute to those conversions.
USIM Recommendations
- We can view incremental attribution results for current campaigns, back to April 1, 2025. Initial research in select accounts indicates that Meta is taking ‘incremental credit’ for upward of 90% of conversions, but limited closer to 50% for retargeting audiences.
- Since most of our campaigns split prospecting vs. retargeting, we’re technically already optimizing prospecting campaigns for incremental conversions, and if we were to optimize retargeting campaigns solely for incremental conversions, that could cause CPA/CPL to increase which most clients probably wouldn’t want.
Meta Instant Forms “Require Work Email”
What's the Update
A new option in Instant Form (lead ads) is set to require a work email address rather than a personal email address in the lead form.
Why It Matters
This is important for B2B advertisers to increase lead contact rates.
USIM Recommendations
- If a B2B client is running lead form ads, or plans to, we should use this option.
- All current lead-form campaigns are for B2C clients and should continue personal email targeting.
Meta Value Optimization (tROAS) Bidding
What's the Update
An updated bidding method focuses on ROAS instead of just conversions or conversion value.
Why It Matters
This Meta update is important for clients who want to maximize ROAS instead of just sales.
USIM Recommendations
- If this fits any specific clients, Liquid Audience is available to test this bidding strategy.
- Please note this would require that the Meta purchase conversion pixel passes revenue data.
Meta Flexible Media
What's the Update
A new creative automation update diversifies creatives by matching different creative assets tailored to other placements, like editing/cropping/resizing a 9:16 ratio file intended for Stories placement to use in a Feed placement that would normally require a 4:5 ratio file.
Why It Matters
This could reduce creative asset quantity needs and it continues to train Meta’s ad creation AI. This could potentially save production time, but limits design control.
USIM Recommendations
- Most of our clients require us to ensure their ads show as designed and desired, which precludes us from using most ad automation like this. There are flexible media previews available in ads manager, but this doesn’t appear available via the preview links, yet.
- If/when we see this option in the preview links, we can offer this option to any interested clients, specifically clients who do in-house design.
- We’ve currently had to append our ad building and QA process to include disabling this feature that Meta auto-enables for all new ads.
WhatsApp Ads
What's the Update
There are now options to promote WhatsApp channels, paid channel subscriptions, and Ads in Status for businesses to show promotions and products.
Why It Matters
These will show in the Updates tab of WhatsApp and unlocks access to an estimated 1.5B daily users.
USIM Recommendations
- If any clients have active WhatsApp accounts and are interested in growing their following or using the App for paid ads, please contact Liquid Audience and we’ll research more details.
- Ad personalization (at least what we can choose) will be limited to geo, language, and channel engagement.
USIM Thoughts On 2025’s Q2
While platforms are offering more transparency and creative flexibility, automation continues to lead, requiring careful oversight to protect brand integrity. As AI reshapes user behavior and bidding shifts toward profitability over volume, it’s important for advertisers to adapt strategies to balance efficiency with control.
Contact USIM today to navigate evolving ad platforms with precision and turn industry updates into measurable growth.
