The Decline of eCommerce Search Ads: Are Shopping Campaigns to Blame?

Traditional search ads are losing ground as Google prioritizes shopping. Before it’s too late, we must adjust our eCommerce advertising strategies. For years, search campaigns have been a cornerstone of any PPC strategy. However, the landscape is evolving as Google increasingly prioritizes shopping within the user experience, altering how users interact with SERPs and how advertisers approach strategies for eCommerce clients.

With continued investments in AI-powered tools like Performance Max—which has absorbed much of what traditional search once offered—and recent innovations such as AI Max, along with Google testing a massive new carousel format for Shopping ads, the platform is clearly moving toward a Shopping-first ecosystem.

As these changes roll out, traditional search ads are receiving less visibility, less control, and arguably, less relevance—especially for eCommerce brands.

Google Ads in eCommerce: Then and Now

Shopping on Google began with the launch of Froogle back in 2002. It evolved into Google Product Search in 2007 before transitioning to a paid-only model in 2012 with the introduction of product listing ads, or PLAs (now known as Shopping ads). In a surprising shift, Google reintroduced free product listings and an organic shopping experience in 2020, which was a game-changer.

Since then, Google has worked tirelessly to enhance the shopping experience, positioning itself as a one-stop shop for the widest array of products from all vendors.

Search Ads vs. Shopping Ads

Traditional search campaigns have long been the backbone of a strong eCommerce advertising strategy. Advertisers could strategically bid on high-intent keywords like “best-running shoes” or “warm winter jackets,” capturing buyers actively searching for specific products. Before the rise of Product Listing Ads (PLAs), these search ads were the primary way to connect interested shoppers directly to product pages, driving targeted traffic with clear purchase intent.

One of the biggest advantages of traditional search campaigns was the level of control they offered. Marketers had granular command over bids, could see exactly which search terms triggered their ads, and fine-tune their keyword lists to continuously optimize performance. This transparency made it easier to measure return on ad spend (ROAS) and refine campaigns for maximum impact.

Then came Product Listing Ads, changing the game by shifting focus from keywords to product feeds. PLAs display product images, prices, brand names, and other details right in the search results—without needing keywords to trigger them. This visual format gives shoppers a more immediate sense of what’s available, appealing directly to their browsing and comparison shopping habits.

Google further evolved this model with Smart Shopping campaigns, which introduced automation and machine learning to simplify campaign management. Advertisers could now promote products seamlessly across multiple Google networks—including Search, Display, YouTube, and Gmail—all within a single campaign. This consolidated approach saved time and allowed Google’s AI to optimize bidding and placements to maximize conversions.

More recently, Smart Shopping has matured into the AI-driven Performance Max campaigns. These leverage even more sophisticated algorithms to allocate budget dynamically across channels and formats, based on real-time data signals. Google’s goal is clear: create a unified, shopping-first experience that connects customers to products wherever they are online.

Over the past six months, Google has accelerated this shift with a series of significant updates:

• A complete redesign of Google Shopping, making it more immersive and user-friendly.
• Integration of shopping comparisons directly into AI-driven overviews, helping users make more informed choices quickly.
• The launch of Vision Match, which uses image recognition technology to connect shoppers with visually similar products.
• And several other AI enhancements aimed at making shopping on Google more seamless and personalized.

These developments highlight Google’s commitment to investing heavily in the Shopping ecosystem. For advertisers, this means that the traditional search landscape is evolving rapidly, with Shopping ads gaining prominence and reshaping how customers discover and buy products online.

The takeaway? To stay competitive, eCommerce marketers must embrace this shopping-first approach, leveraging new AI-powered tools and formats while still balancing traditional tactics where they make sense.

How Google Is Prioritizing Shopping Over Search Campaigns

Google’s SERPs look vastly different today compared to five years ago—or even a year ago. For instance, when searching for “Men’s Bike Helmet” on Google in the U.S., the results resemble a true shopping experience rather than a traditional SERP.

Everything above the fold is product-based, not text/traditional results-based, complete with filters on both the left-hand rail and at the top. Five years ago—or even a year ago—the majority of these results would have been Search Ads and organic listings.

We can expect even more changes to the SERPs following Google’s recent announcement of a new Shopping Ads carousel format, allowing users to view multiple rows of PLAs.

I noticed it myself while searching for “soccer balls.” This could be a game-changer for PLAs.

It encourages users to browse through Shopping Ads results longer, possibly preventing them from scrolling far enough to see a Search Ad.

In this case, there wasn’t a single Search Ad in sight. As marketers, we observe this trend in our accounts. Below is a screenshot of one of our client’s non-brand Search and Shopping campaigns’ average conversion value/cost so far this year.

In addition to refining the Google Shopping experience, several new AI campaign features have emerged, such as the beta AI Max.

Google is also experimenting with intent-based matching rather than keyword matching for Search campaigns. While this concept is somewhat familiar if you’re using Performance Max, testing this feature exclusively on Search campaigns is new.

So, is there a future for keywordless match search campaigns?

Why We Still Need Traditional Search

Despite the rise of Shopping in SERPs, Search campaigns still play a critical role in our account strategy, covering areas where Shopping falls short:

• Long-tail or complex queries (e.g., “organic dog food for large breeds with allergies”)
• Brand protection, ensuring competitors don’t hijack our traffic
• A/B testing different ad copy, landing pages, and assets

We’re not suggesting abandoning traditional Search Ads in Google Ads accounts. Instead, we should continue leveraging a full mix of campaign types to prevent gaps in coverage while mitigating overlap. With the addition of Performance Max spanning multiple networks, a well-thought-out approach to account structures is essential, ensuring campaigns complement rather than compete with each other.

What Does This Mean for eCommerce Marketers?

Search isn’t dead, but its role in driving eCommerce strategy within Google Ads accounts is diminishing. As Google’s SERPs increasingly favor feed-based and visually appealing Shopping results, traditional Search campaigns still hold value—but that value is shrinking.

eCommerce brands must adapt and diversify their strategies quickly, or they risk falling behind. Shopping ads are here to stay, even as new technologies emerge.