Digital Advertising Blog




Google's AI Magic: Superpowers for Car Dealership Ads

by Terry MacCauley - Posted 7 hours ago


We are thrilled to share how Google’s latest AI updates were unveiled at Google Marketing Live 2025 last Wednesday, just after hitting send for the previous week's newsletter. 2025 will transform how we help our auto dealer clients stand out. These AI-powered tools are like a team of superheroes, making it easier for us to create eye-catching ads, reach the right customers, and measure what drives sales. For auto dealers, this means more showroom visits and more cars sold.

 

However, it is essential to set expectations: as of May 28, 2025, not all of these tools are fully available. Some, like Smart Bidding Exploration, are live and ready to use, while others, such as the full integration of Veo and Imagen into Google Ads, are still rolling out or in development. This phased rollout means we at Big Time are leveraging what is available now and preparing to adopt new features as they become fully operational, ensuring our clients stay ahead in a competitive market.

To give you a clear picture, here is the current status of these AI updates:

  • Ads in AI Overviews and AI Mode:

    These allow ads to appear within AI-generated search results, expanding to desktop and targeting users early in their car-buying journey.  Ads are now appearing in AI Overviews on desktops in the U.S., with plans to expand to mobile (97% of BHPH Traffic is mobile) and desktops in select countries later this year. Google is testing ads in AI Mode, but full availability is still pending.

     
  • Creative Tools (Veo and Imagen):

    These are AI models for generating images and videos, aimed at simplifying ad creation.  Veo 3 and Imagen 4 are available in beta through Google’s AI platforms like Gemini and Flow for Google AI Ultra subscribers in the U.S. They are slated to integrate into Google Ads and Merchant Center soon. Still, they are not fully available in Google Ads.

     
  • Smart Bidding Exploration:

    An update to bidding strategies, pursuing high-performing searches. This major bidding update is available as an open beta starting May 2025 for randomly selected ad accounts.

     
  • AI Max for Search Campaigns:

    Enhances ad matching and customization based on user intent.  Announced on May 5, 2025, with an open beta starting May 27, 2025, for randomly selected ad accounts, and full rollout expected by early Q3 2025.

     
  • Power Pack Campaign Solutions:

    Combines Performance Max, AI Max, and Demand Gen for integrated campaign performance across platforms.  Announced as a next-generation suite combining Performance Max, AI Max, and Demand Gen, but specific availability details are unclear, suggesting it may still be in development or early rollout.

With this context, let’s explore these AI superpowers, how they benefit auto dealers, and how we use them at Big Time to keep our clients competitive.

 

What Are These AI Superpowers?

 

Google’s new AI tools are like a magical toolbox that makes advertising faster, smarter, and more effective. Here’s a breakdown of the key updates and how they work:

 

Ads in AI Overviews and AI Mode

 

Imagine you are asking a super-smart friend about the best cars for a family road trip, and they show you an ad for a minivan on sale nearby. That is what Google’s AI Overviews and AI Mode do.  They place ads in AI-driven search results, where people explore car options. With Google handling over 5 trillion searches a year (Google Marketing Live 2025), this is a huge opportunity to catch potential buyers early. Currently, these ads are live on desktop in the U.S., with global expansion planned for later in 2025.

  • Why it matters: We can show our dealers’ ads to people searching for “best SUVs for families,” increasing dealership visits. As AI Mode ads roll out, we will expand our reach further.

AI-Powered Creative Tools (Veo and Imagen)

 

Picture a magic artist who creates stunning car posters or videos in seconds, just by describing them. Google’s Imagen (for images) and Veo (for videos) do precisely that, producing professional-grade visuals without expensive designers or long production times (Octiv Digital). For example, we can create a video showcasing a truck’s towing power in minutes. These tools are available in beta on platforms like Gemini and Flow, with full Google Ads integration coming soon.  Our team is already playing with both Veo and Imagen. What we produce is remarkable when we lack video B-roll or need something better than the classic stock photography that does not match our customers.  It does not replace the need for humans; it just makes humans much more productive promptly.  The combination is powerful.

  • Why it matters: Once fully available, these tools will save time and money, letting us create ads that make our clients’ cars irresistible.

Performance Max Enhancements

 

Think of a super-smart robot that picks the best spot and sign for your dealership. Google’s Performance Max campaigns use AI to optimize ads, showing them to people most likely to buy cars. Google reports these campaigns have boosted advertisers' conversions by over 10% (Google Ads Help). These enhancements are fully available, building on last year’s 90+ quality improvements.

  • Why it matters: By targeting the right audience at the right time, we can help our dealers attract more customers.

Power Pack Campaign Solutions

 

Imagine a dream team of marketers making your dealership the best in town. Google’s “Power Pack” combines Performance Max, AI Max for Search, and Demand Gen to make ads effective across Google Search, YouTube, and more (Google Ads Help). Demand Gen creates visually appealing YouTube ads that are perfect for showcasing cars. While announced, Power Pack’s full availability is unclear, suggesting it is in early stages.

  • Why it matters: As it rolls out, we will create integrated campaigns to reach buyers everywhere, driving more sales.

Better Measurement Tools

 

Picture a scoreboard that shows how many vehicles you sold and why. Google’s new analytics tools, like Data Manager and expanded incrementality testing, provide clear insights into which ads drive those coveted dealership visits. For example, we can see if a YouTube ad led to more test drives than a search ad. These tools are available and improving campaign optimization.

  • Why it matters: We can fine-tune campaigns to ensure every ad dollar delivers the best results.

Why Do Car Dealerships Need These Superpowers?

 

Selling cars is like running a lemonade stand in a town full of competitors; standing out is no easy task. Auto dealers must attract customers online, where buyers research vehicles before visiting showrooms. These AI tools help:

  • Reach Customers EarlyAds in AI Overviews and AI Mode connect with people at the start of their car-buying journey, like showing a lemonade ad to someone thirsty. This increases showroom visits. We are thrilled to see Google backing up what we have believed for over a decade. Everyone wants to see conversion on a dashboard, but historically, it only points to the last click attribution, which is an absolute rookie mistake. We are excited about this development.

     
  • Save Time and Money: Creating high-quality ads was costly and slow. With Imagen and Veo (once fully available), we can produce stunning visuals more quickly, letting dealers focus on their sales.

     
  • Boost SalesSmarter campaigns like Performance Max target the right audience, such as families needing minivans or young drivers wanting sports cars, driving more sales.

     
  • Stay Competitive: In a crowded market, dealers need an edge. These tools help us create engaging ads that outshine competitors.

How We Use These Tools at Big Time

At Big Time Advertising & Marketing, we are top-shelf digital marketing experts for car dealerships. These Google AI updates give us powerful new ways to help our dealers succeed:

  • Creating Stunning Ads Quickly: With Imagen and Veo (available in beta and soon in Google Ads), we can produce high-quality images and videos in minutes. For example, we could create a video highlighting a new SUV’s safety features without a big budget.

     
  • Targeting the Right Customers: Using Performance Max and Power Pack (as it rolls out), we ensure ads reach the perfect audience, like someone searching “reliable used cars near me,” driving more dealership visits.

     
  • Measuring Success BetterNew analytics tools let us see what works, like whether a YouTube ad or search ad led to more test drives, allowing us to maximize results.

     
  • Staying Ahead of the Competition: We leverage these tools to position ourselves as a leading automotive digital ad agency. An X post by @CoryLindholm (CoryLindholm Post) notes that while AI is powerful, expert agencies like ours are crucial for custom strategies, reinforcing our value.

Explaining It Like We Are 5

 

Imagine we are selling lemonade and want everyone to know about it. Typically, we would shout or spend hours making signs. Now, picture a superhero who:

  • Puts your ad where people are looking, like when they are super thirsty.

  • Draws awesome posters and videos within seconds that match the customer.

  • Finds the best location and times to sell, so more people buy.

  • Gives us a report card showing which flavors people love and buy.

For car dealerships, Google’s AI tools are like that superhero. They help us show our dealers' cars to the right people, create amazing ads, and determine what works best. At Big Time, we are using these superpowers now and will harness more as they become available, making our clients’ dealerships the talk of the town.

 

The Impact on Staying Competitive

 

These AI updates give Big Time Advertising a massive advantage in helping our auto dealer clients stay ahead. Here is how we use each tool to keep our clients competitive:




These tools streamline our work and amplify results, helping our dealers outshine competitors. For example, we can use AI-generated videos to showcase a new car model, target ads to local buyers, and track which ads lead to test drives, all with our expert guidance.

 

Google’s AI updates from Google Marketing Live 2025 are like giving our auto dealer clients a superhero team for their advertising. Tools like ads in AI Overviews, AI-powered creative generators, enhanced Performance Max campaigns, Power Pack solutions, and advanced analytics help us reach more customers, create better ads, and drive more sales. While some tools are still rolling out, we at Big Time Advertising & Marketing are ready to harness these superpowers as they become available, keeping our dealers ahead in a competitive market. We are proud to lead the way for our auto dealer partners.

 

-by Terry MacCauley, Founder & CEO