Internal Research Brief

Google AI Max
for Search

A comprehensive research report on Google's AI Max feature - what it does, what the industry is saying, and what it means for the BusCharter account.

Prepared for: BusCharter (BCTNA)
Date: 11 February 2026
Prepared by: Market Lead

Executive Summary

Google's AI Max for Search is an automation layer that expands keyword matching, generates ad copy, and reroutes landing pages - all within existing Search campaigns. Google claims a 14% conversion lift. However, independent testing from agencies and practitioners paints a starkly different picture: only 16% of advertisers report positive results, CPAs have increased up to 90% in controlled tests, and attribution reporting is fundamentally unreliable.

Our recommendation: Do not activate AI Max for BusCharter at this time. The account's tight CPA targets, geographic precision, and lead quality requirements make it a high-risk candidate. If a test is considered, it should follow a strict framework with safeguards.

What is AI Max for Search?

A toggleable feature inside existing Search campaigns - not a new campaign type.

AI Max for Search was announced at Google Marketing Live 2025 and is now rolling out globally. It adds three automation layers to standard Search campaigns:

Search Term Matching

Treats all keywords as broad match + keywordless matching to find new queries. Uses contextual, behavioral, and semantic data - not just keyword text.

Text Customisation

Auto-generates headlines and descriptions from landing pages and existing ads. Runs without prior advertiser approval. Only 25 excluded words allowed.

Final URL Expansion

Reroutes traffic to different landing pages Google thinks will perform better. Cannot be disabled independently - must be paired with text customisation.

Key point: Unlike Performance Max, AI Max stays within the Search network and provides search term-level reporting. However, it effectively overrides your match types, ad copy, and landing page selections.

AI Max Transparency: What You Can and Can't See

One of the biggest questions - how much visibility do you actually get?

What You CAN See

  • Full search term report - Every query that triggered your ads, with cost, clicks, impressions, conversions
  • AI Max match type label - Since July 2025, AI Max shows as its own match type in reports (separate from broad/exact/phrase)
  • Which campaigns/ad groups were matched to which search terms
  • Landing pages that received traffic (if URL expansion is on)
  • Generated ad copy - You can see the headlines/descriptions that were created
  • Negative keywords - Full support at campaign and ad group level
  • Search partner vs. Google.com breakdown in reports

What You CAN'T See or Control

  • Why a query was matched - No visibility into Google's AI reasoning for matching decisions
  • True incrementality - AI Max claims credit for conversions your existing keywords would have captured anyway (Brad Geddes, Adalysis)
  • Ad preview before it runs - Auto-generated ads go live without approval
  • Keyword-level match type control - AI Max treats ALL keywords as broad match regardless of your settings
  • URL expansion control - Can't disable independently; must be paired with text customisation
  • Separated conversion data - Must manually de-duplicate AI Max conversions from existing keyword conversions via spreadsheets
  • Real-time budget controls - No automated pause rules if CPA exceeds thresholds

AI Max vs PMax vs Standard Search: Transparency Comparison

Feature Standard Search AI Max for Search Performance Max
Search term visibility ✅ Full ✅ Full ❌ Very limited
Match type control ✅ Exact, Phrase, Broad ❌ All treated as broad ❌ No keywords at all
Negative keyword support ✅ Full ✅ Full ❌ Limited (added late)
Ad copy control ✅ Full - you write it ❌ Auto-generated without approval ❌ Auto-generated
Landing page control ✅ You choose ❌ Google can override (URL expansion) ❌ Google chooses
Network control ✅ Search only ✅ Search only ❌ All networks (Search, Display, YouTube, Gmail, etc.)
Attribution clarity ✅ Clear keyword attribution ❌ Claims credit for existing keyword conversions ❌ Black box
Incrementality measurement ✅ Straightforward ❌ Requires manual spreadsheet de-duplication ❌ Nearly impossible
❌ Bottom line: AI Max gives you more transparency than PMax (you can see search terms), but far less control than standard Search. The biggest gap is attribution - you genuinely cannot tell if AI Max is driving new leads or just stealing credit from your existing keywords.

BusCharter Account Snapshot

Current account structure and performance - last 30 days

$30.2K
Total Spend (30d)
5,547
Total Clicks
2,532
Total Conversions
20
Active Campaigns
$7-$16.50
Target CPA Range
7,434
Search Terms (30d)

Top Campaigns by Spend

Campaign Spend Clicks Conv. CPA
Minibus CBD (BusCharter)$7,6902,154808$9.52
Brand [Global]$6,5271,802634$10.30
NZ | Whole Country Location$2,569651154$16.68
Sydney$2,497283157$15.90
Sydney [Mobile Only]$1,991374118$16.87
Melbourne$1,899236165$11.51
Melbourne [Mobile Only]$1,33028393$14.30
Auckland Location Based [NZ]$1,14626669$16.61

Account Characteristics Relevant to AI Max

Performance Max History in This Account

PMax ran July-September 2025 across 4 campaigns, then was paused for poor results.

$32.8K
Total PMax Spend (3 months)
1-3%
CTR (vs 10-15% on Search)
❌ Zero
Search Terms Available

PMax Monthly Performance

Campaign Month Spend Clicks Impressions CTR Conv.
Sydney [PMax]Jul 2025$1,72585370,3691.2%214
Melbourne [PMax]Jul 2025$1,54961962,1451.0%125
Brisbane [PMax]Jul 2025$2,08379768,2501.2%168
NZ [PMax]Jul 2025$46382,2081.7%1
Sydney [PMax]Aug 2025$4,9241,68772,5842.3%528
Melbourne [PMax]Aug 2025$3,6661,15390,6211.3%291
Brisbane [PMax]Aug 2025$4,1891,24581,8711.5%382
NZ [PMax]Aug 2025$2,2271,07890,5091.2%180
Sydney [PMax]Sep 2025$4,5071,27140,6613.1%728
Melbourne [PMax]Sep 2025$3,57074641,6331.8%442
Brisbane [PMax]Sep 2025$3,57981443,0001.9%413
NZ [PMax]Sep 2025$76046343,2241.1%98
❌ Why PMax was a problem:
  • CTR of 1-3% indicates majority of impressions were Display/YouTube placements - NOT genuine search intent (current Search campaigns run 10-15% CTR)
  • Zero search term data available - we pulled the API and confirmed no search terms exist for these PMax campaigns. Complete black box.
  • "Conversions" were likely inflated by Display/YouTube touchpoints that don't represent genuine charter requests
  • No way to verify lead quality - the 3,570 reported conversions over 3 months cannot be audited against actual quote requests
  • $32.8K spent with no accountability - no search terms, no network-level reporting, no visibility into what the money was actually spent on
Why this matters for AI Max: AI Max shares the same automation philosophy as PMax - broad matching, AI-generated creative, automated landing page selection. While AI Max is Search-only (an improvement), the core concern remains: Google's automation prioritises volume over quality, and this account has already proven that doesn't work here.

Google's Claims vs. Reality

What Google says versus what practitioners are actually experiencing.

Google's Claims

  • +14% more conversions at similar CPA
  • +27% uplift for exact/phrase-only campaigns
  • L'Oreal: 2x conversion rate, -31% cost per conversion
  • MyConnect: +16% leads, -13% cost per lead
  • 30% conversions from entirely new queries
  • "More transparency than PMax" - full search term reporting

Independent Testing

  • ❌ Only 16% of advertisers report positive results (LinkedIn poll)
  • 99% of impressions = zero conversions (~30K terms, Monks Agency)
  • $100.37/conv vs $43.97 phrase match - 128% CPA increase (Mantica test)
  • -35% ROAS vs traditional match types (250+ retail campaigns)
  • ❌ CPCs +15-25% in competitive niches
  • ❌ Lead quality -18% in B2B SaaS scenarios
  • ❌ Bounce rates +15% from URL expansion
  • ❌ Budget overruns of 20%+ from irrelevant matches
❌ Attribution Warning: Brad Geddes (Adalysis) documented that AI Max treats all keywords as broad match regardless of specified match type and claims credit for conversions that would have occurred through existing exact/phrase match keywords. This makes true incrementality assessment extremely difficult. Xavier Mantica's 4-month test concluded: "I'm done with AI Max. After 4 months of testing, the data is brutal."

What the Industry is Saying

Public sentiment from practitioners, agencies, and PPC communities.

Overall Sentiment Distribution

Negative 55%
Mixed 29%
Positive 16%
R

Reddit (r/PPC, r/googleads)

❌ "AI Max is just Google's way of turning all your carefully set match types into broad match without telling you. My CPAs went through the roof."
- r/PPC thread, PPC Practitioner
❌ "Turned it on for a lead gen client. Volume went up, quality went to garbage. Took 2 weeks to undo the damage."
- r/googleads thread, Agency Account Manager
❌ "The reporting makes it look like it's working, but when you dig into the search terms it's matching to competitor and irrelevant queries."
- r/PPC thread, Senior PPC Specialist

Reddit consensus: Overwhelmingly negative for lead gen accounts. Most common complaints: CPA increases, irrelevant search term matching, loss of geographic/keyword control.

in

LinkedIn

❌ "Only 16% of respondents reported good performance from AI Max."
- Adriaan Dekker, Google Ads Specialist (LinkedIn Poll)
❌ "AI Max will target as 'opportunities' those pockets of traffic advertisers intentionally avoided, particularly competitor keywords and brand terms."
- Mike Ryan, Smarter Ecommerce
❌ "If everyone lets AI write their ads, your brand voice will sound like everybody else's."
- VIADS Analysis (LinkedIn)

LinkedIn consensus: Most experienced PPC practitioners are cautious or outright negative. Google reps are bullish. The divide between Google's marketing and practitioner experience is stark.

B

Industry Blogs & Expert Analysis

❌ "For performance-based clients, it really hasn't been proven out yet. In most cases, unfortunately, it's two to three times higher than our traditional search."
- Tim Lathrop, VP Platform Digital, Mediassociates (Digiday)
❌ "Generated keywords were so broad - or only tangentially linked to a category. There's a lot of optimization that needs to happen... it almost defeats the purpose."
- Vitya Vijayan, Global Head of Search & Social, M&C Saatchi Performance
❌ "The time savings were negligible. In some cases, we spent more time correcting errors than we would have crafting the ads manually."
- Altitude Marketing (30-day controlled test)
❌ "AI is tactical, not strategic - it optimizes for quick conversions without understanding brand positioning, competitive dynamics, or customer lifetime value."
- Lunio Analysis
"Disabling creative features has produced good results. You have to be willing to part with some tactical and strategic control."
- Sam Clarke, Head of Search, Crossmedia

PPCChat Expert Discussion Highlights

From the PPCChat community discussion (moderated by Ginny Marvin, Google Ads):

Key Risks for BusCharter

Why this account is particularly vulnerable to AI Max problems.

❌ HIGH

Geographic Muddling

AI Max could serve Sydney ads to Melbourne users or mix AUS/NZ traffic. Your carefully segmented city-by-city structure - the backbone of your account - would be undermined. URL expansion could send Melbourne searchers to Sydney landing pages.

❌ HIGH

Lead Quality Degradation

Broad matching means queries like "how much does a bus cost to buy" or "bus driver jobs" could trigger your ads. For a lead gen account where every inquiry must be a genuine charter request, this is unacceptable waste. B2B lead quality drops of 18% have been documented.

❌ HIGH

CPA Targets Too Tight for Learning

Your target CPAs of $7-$16.50 leave almost no room for AI Max's "learning period." Google recommends budgets of 15x target CPA ($750/day minimum) - most of your campaigns run well below this threshold. AI Max will likely blow past CPA targets.

❌ HIGH

Attribution Gaming

AI Max claims credit for conversions that would have happened anyway via your existing exact/phrase match keywords. You won't be able to tell if it's actually driving incremental leads or just stealing attribution from campaigns that are already working.

❌ MED

Competitor Term Waste

One documented case showed 69% of AI Max impressions came from competitor brand terms. For BusCharter, this means your budget could go toward people searching for "Greyhound" or "Murrays Coaches" - low-intent, high-cost clicks.

❌ MED

PMax Precedent

Performance Max was paused in this account after $32.8K spend with poor results and zero search term visibility. AI Max shares the same automation philosophy - broad matching, AI-generated creative, automated landing page selection. Different name, similar DNA.

Our Recommendation

Position

Do not activate AI Max for BusCharter at this stage. The account is performing well with standard Search campaigns, tight CPA targets, and geographic precision. The risks of AI Max - CPA blowout, geographic muddling, lead quality degradation, and attribution manipulation - far outweigh any potential upside for this specific account type.

If Wade and Midori provide compelling lead-gen specific case studies (not e-commerce, not global brands), we would consider a controlled test under the following strict framework:

  • 1
    Require lead gen case studies - Not L'Oreal or retail. Show us a service-based, lead gen business with tight CPAs that saw genuine improvement.
  • 2
    One campaign only - Test on a single, smaller campaign (e.g., Dunedin Location Based at ~$174/month spend) to limit blast radius.
  • 3
    Disable creative features - Turn OFF Text Customisation and URL Expansion. Only test Search Term Matching in isolation.
  • 4
    Weekly negative keyword audits - Review AI Max search terms weekly and aggressively negative irrelevant queries.
  • 5
    8-week minimum - Run for 8 weeks before making any conclusions. Compare vs. the same campaign's pre-test performance.
  • 6
    Kill switch ready - If CPA exceeds 120% of target at any point, pause immediately. No "let it learn" grace period on a performing account.

The Bigger Picture

Where AI Max fits in Google's long-term strategy.

AI Max is not going away. It's part of Google's broader push to automate all aspects of Search advertising - similar to the trajectory of Smart Bidding and Performance Max before it. Google will likely make it the default for all Search campaigns in the coming months.

However, being first to adopt doesn't mean being smart to adopt. The data shows AI Max works best for:

BusCharter does not fit this profile. The account relies on geographic precision, tight CPAs, and high-quality leads. We should revisit AI Max in 6 months when:

Sources & References