The pace of change in pay‑per‑click advertising has never been faster. Over the past two years, the major digital platforms have shifted from incremental updates to sweeping structural changes driven by AI, automation, privacy regulation and new ad formats. For agencies and in‑house teams, 2026 isn’t just another year of optimisation — it’s a fundamental reshaping of how paid media works.

Below, we break down the most important upcoming changes across Google, Microsoft, TikTok and the wider ecosystem, and what they mean for running high‑performing campaigns for clients.

1. AI‑Led Search Results Are Becoming the New Default

Google’s AI Overviews and other AI‑style search modes are no longer experimental — they’re becoming a core part of the search experience. These AI‑generated summaries increasingly include paid placements, giving advertisers new real estate but also changing how users interact with search results.

What’s changing

• Ads now appear inside AI Overviews and follow‑up prompt areas.
• Users are performing longer, more exploratory queries.
• Clicks are shifting from short, direct searches to mid‑funnel interactions.

What it means for agencies

This shift requires a rethink of keyword strategy and creative. Traditional “exact intent” search behaviour is fragmenting, and brands need to show up in more conversational, research‑driven moments.

Practical implications:

• Build assets that read well in condensed AI cards.
• Expand creative to include how‑to content, comparisons and problem‑solving angles.
• Track assisted conversions, not just last‑click performance.

AI‑led search is less about bidding on the perfect keyword and more about supplying the right signals and content for Google’s models to surface.

2. Broad Match + Signals Is Becoming the New Standard

Google’s AI Max for Search and the broader shift towards automation means strict keyword control is fading. Broad match, combined with audience and CRM signals, is becoming the default optimisation path.

What’s changing

• Broad match is prioritised over phrase and exact.
• Negative lists and brand protections become more important.
• Search themes and value rules help steer automation.

What it means for agencies

Agencies must shift from micro‑managing keywords to managing signals. This includes CRM data, audience lists, conversion values and product feeds.

Practical implications:

• Build strong negative keyword lists from day one.
• Use value‑based bidding tied to margin, stock or lead quality.
• Review search terms weekly to keep automation aligned.

This is a mindset shift: you’re no longer “controlling” campaigns — you’re guiding them.

3. Performance Max Is Growing Up — With More Transparency

Performance Max (PMax) has been controversial, but 2026 brings better reporting, stronger brand exclusions and more control over placements. Agencies now have more levers to influence performance without dismantling the consolidated structure PMax relies on.

What’s changing

• More placement insights.
• Asset‑level signals and reporting.
• Stronger brand exclusions and inventory filters.

What it means for agencies

PMax is no longer a “black box” — but it still rewards consolidation and high‑quality creative.

Practical implications:

• Structure campaigns by product set or service line, not channel.
• Maintain a clean, varied asset library (problem, proof, price angles).
• Run regular uplift tests and retire weak assets.

PMax is becoming a creative‑led performance engine. Agencies that treat creative as a strategic lever will outperform those who treat it as an afterthought.

4. First‑Party Data Is Becoming Essential, Not Optional

With ongoing privacy changes, Chrome’s cookie controls and the continued rollout of Consent Mode v2 across the UK and EEA, first‑party data is now the backbone of PPC performance. Google’s Data Manager is also making it easier to connect and stream data into ad platforms.

What’s changing

• Chrome continues to phase out third‑party cookies.
• Consent Mode v2 is required for full measurement in the UK and EEA.
• Google’s Data Manager helps unify and stream first‑party data.

What it means for agencies

Agencies must help clients build durable data foundations — not just for compliance, but for performance.

Practical implications:

• Ensure Consent Mode v2 is implemented correctly.
• Connect CRM, analytics and offline conversion data.
• Use first‑party data to power audience expansion and modelling.

Without strong first‑party data, automated bidding and modelling will underperform.

5. Retail Media and Connected TV Are Moving From “Test” to “Core”

Retail media networks (RMNs) and connected TV (CTV) have exploded, and 2026 is the year they become mainstream PPC channels.

What’s changing

• Retail media is no longer experimental — it’s a core budget line.
• CTV offers new performance‑driven formats with measurable outcomes.

What it means for agencies

Agencies must expand their channel mix and develop new measurement frameworks.

Practical implications:

• Build retail media strategies for clients with physical or e‑commerce products.
• Use CTV for upper‑funnel reach with measurable conversions.
• Integrate RMN and CTV data into cross‑channel reporting.

This is a major opportunity for agencies to differentiate their offering.

6. Microsoft Copilot Ads Introduce Conversational Journeys

Microsoft’s integration of ads into Copilot‑powered search and chat experiences creates new conversational ad formats. These placements appear within AI‑driven responses, similar to Google’s AI Overviews.

What’s changing

• Ads appear inside conversational AI experiences.
• Users engage in multi‑step, chat‑based journeys.

What it means for agencies

This opens up new mid‑funnel opportunities, especially for B2B and service‑based clients.

Practical implications:

• Optimise assets for conversational discovery.
• Use structured data and clear value propositions.
• Track multi‑touch journeys across chat‑based interactions.

Microsoft’s share of search may be smaller, but its innovation pace is accelerating.

7. TikTok Search Ads Are Now Part of the Intent Mix

TikTok’s Search Ads are gaining traction, giving advertisers access to a younger, highly engaged audience performing intent‑driven searches within the app.

What’s changing

• TikTok Search Ads are expanding globally.
• Users search for product reviews, tutorials and recommendations.

What it means for agencies

TikTok is no longer just a creative awareness channel — it’s becoming a full‑funnel platform.

Practical implications:

• Build search‑optimised TikTok creative (UGC, tutorials, comparisons).
• Use TikTok’s keyword insights to shape content.
• Integrate TikTok Search into cross‑channel intent strategies.

For many brands, TikTok is now where the buying journey starts.

8. AI and Automation Are Accelerating — But Human Oversight Matters More Than Ever

Industry experts agree that 2025 and 2026 mark the fastest acceleration of AI in PPC’s 20‑year history. Automation is powerful, but it still needs human direction, structure and quality signals.

What’s changing

• AI is dominating search, creative and optimisation.
• Platforms are releasing new features at unprecedented speed.

What it means for agencies

Agencies must balance automation with fundamentals.

Practical implications:

• Maintain strong campaign structure.
• Provide high‑quality signals (keywords, audiences, creative).
• Use scripts and anomaly detection to catch issues early.

AI is only as good as the inputs you give it.

What This All Means for Agencies in 2026

1. Strategy and creative become the differentiators

As automation handles more of the execution, agencies win by providing strategic thinking, creative excellence and data integration.

2. First‑party data becomes a competitive advantage

Agencies that help clients build strong data pipelines will outperform those relying on platform defaults.

3. Cross‑channel expertise becomes essential

Search alone is no longer enough. Retail media, CTV, TikTok Search and conversational AI are now part of the core mix.

4. Measurement must evolve

With privacy changes and AI‑driven journeys, last‑click attribution is increasingly meaningless. Agencies must adopt multi‑touch and assisted‑conversion models.

5. Clients need more education and expectation‑setting

The landscape is changing fast. Agencies must guide clients through the shifts, explain the role of automation and set realistic expectations.

2026 is a transformative year for PPC. AI‑driven search, privacy‑first measurement, new ad formats and the rise of retail media are reshaping how campaigns are planned, executed and optimised. For agencies, the opportunity is huge — but only if you adapt.

The winners will be those who embrace automation while doubling down on strategy, creative and data. PPC is no longer about controlling every lever — it’s about guiding powerful systems with the right inputs, insights and intent.

Looking to keep your online presence ahead of the competition? Get in-touch to discuss how Notch can help improve your pay-per-click performance.