‘CPC pain is real’: One year on, Google’s AI Max has pushed up search budgets – and costs

May 06, 2026

By Sam Bradley In the 12 months since Google debuted AI Max for Search, brands have increased their search budgets and seen cost-per-clicks (CPCs) rise, while compounding search’s transition into a media channel ruled by automation.

For some clients, search costs increased by as much as 15% in the last year, according to four media buyers who spoke with Digiday.

Unlike traditional methods of targeting search campaigns, AI Max generates target keywords and queries using a brand’s chosen landing page, creative and keywords as inputs. The result is an evolution away from keyword-based auctions, toward a market anchored around intent. Google claims that this technique enables advertisers to catch users they’d otherwise miss, leading to an average increase in conversions of 7%. The product was introduced May 6 last year and left beta status last week.Continue reading this article on digiday.com. Sign up for Digiday newsletters to get the latest on media, marketing and the future of TV. …read more

Source:: Digiday