Your guide to Google Ads Smart Bidding

Google is rolling out default asset optimization for all existing and new Demand Gen image ads, automatically adapting creatives to better fit various styles and aspect ratios starting Sept. 4. Advertisers can opt out before the launch date.

How it works:

  • Google AI enhances images with adaptive layouts and generates variations of creative assets (like vertical or square videos from horizontal ones).
  • Text suggestions, generated images, and a new AI-powered image editor aim to streamline campaign setup and performance testing.
  • Video and image enhancements are enabled by default in new campaigns, with manual opt-out available per ad.
  • A landing page preview feature shows users a snapshot of what to expect post-click, building trust and click-through potential.

Why we care. This marks a major step in Google’s AI-driven creative push, helping brands reach users across YouTube, Discover, Gmail, and video partners with smarter, more flexible formats—without heavy manual production.

By optimizing images and videos to fit more placements and devices, campaigns can achieve broader reach and possibly higher engagement. These updates also make it easier to test, iterate, and scale creative assets, definitely saving time. However, whether it will prove effective is too soon to tell.

Between the lines. Google is expanding the use of generative AI across all creative layers in Demand Gen campaigns, aiming to reduce production bottlenecks while boosting performance.

Also, single image ads will be turned on by default as noted in a message sent to Menachem Ani, founder of JXT Group, who shared the email he received on X:

Bottom line. Google continues leaning into automation and AI to fuel ad growth. Embracing these creative tools early could help you gain a competitive edge – especially as we head into Q4.