Overview
The digital advertising landscape continues to evolve rapidly. This update covers the most significant changes affecting performance marketers in Q1 2026.
Google Ads Updates
Performance Max Enhancements
Google has expanded Performance Max capabilities:
- Asset-Level Reporting: Now see performance metrics for individual creative assets
- Brand Guidelines Integration: Upload brand assets for consistent AI-generated creatives
- Negative Keywords: Finally available at campaign level (limited rollout)
Search Generative Experience (SGE) Ads
AI-powered search results now include:
- Integrated shopping recommendations
- Conversational ad extensions
- New "AI Overview" ad placements
Demand Gen Updates
- YouTube Shorts ads now available in Demand Gen
- Discover feed expansion to more surfaces
- Improved audience signals for lookalike targeting
Meta Platform Changes
Advantage+ Expansion
Meta's AI-driven campaign tools now include:
- Advantage+ Creative: Automatic aspect ratio adjustment, background generation
- Advantage+ Audience: Broader targeting with ML optimization
- Advantage+ Placements: Cross-platform optimization including Threads
Threads Advertising
Threads ads are now available globally:
- Text-first format with optional media
- Integrated with existing Instagram campaigns
- Conversation-driving objectives
Privacy & Tracking
- Enhanced Conversions now required for optimal tracking
- Conversions API (CAPI) strongly recommended
- Server-side tracking becoming standard
Privacy Landscape
Third-Party Cookie Deprecation
Google Chrome's third-party cookie phase-out continues:
Timeline:- Q1 2026: 10% of Chrome users affected
- Q3 2026: 50% rollout planned
- Q4 2026: Full deprecation expected
- 1. Implement first-party data strategy
- 2. Set up Enhanced Conversions / CAPI
- 3. Build customer data platforms (CDP)
- 4. Test contextual targeting alternatives
- 5. Evaluate Google Privacy Sandbox APIs
Consent Mode V2
Google Consent Mode V2 is now mandatory in EEA:
- Required for remarketing audiences
- Affects conversion modeling accuracy
- Must implement before March 2026 deadline
AI in Advertising
Creative AI Tools
- Google's AI-generated ad assets now in general availability
- Meta's Advantage+ Creative generating 30% of retail ad variations
- LinkedIn introducing AI headline suggestions
Bidding & Optimization
- Value-based bidding adoption up 40% YoY
- Predictive lifetime value signals gaining traction
- Cross-channel optimization becoming standard
Emerging Channels
Retail Media Networks
Retail media ad spend projected to reach $60B in 2026:
- Amazon Ads expanding self-service tools
- Walmart Connect, Target Roundel growing
- First-party data advantage driving adoption
Connected TV (CTV)
- Programmatic CTV up 35% YoY
- Self-serve CTV options expanding
- Attribution improving with ACR data
Audio Advertising
- Spotify Ad Studio updates for SMBs
- Podcast advertising measurement improving
- Voice-activated ad interactions piloting
Action Items for Marketers
- 1. Audit tracking setup: Ensure Enhanced Conversions / CAPI implemented
- 2. Test AI creative tools: Leverage platform AI for creative generation
- 3. Diversify channels: Reduce dependency on any single platform
- 4. Build first-party data: Prepare for cookieless future
- 5. Review consent management: Ensure GDPR/privacy compliance
What's Next
Expect continued focus on:
- Privacy-preserving measurement
- AI-generated creative at scale
- Cross-channel attribution solutions
- Retail media expansion