Google Is Retiring Dynamic Search Ads: What to Do Before Auto-Migration

Google has confirmed that it’s retiring Dynamic Search Ads. Starting in September, campaigns using DSA, Automatically Created Assets (ACA), or campaign-level broad match will be automatically migrated to AI Max for Search, and no new DSA campaigns can be created across Google Ads platforms. All eligible campaigns are expected to complete their transitions by the end of that month.

This isn't a soft deprecation; the migration is happening on Google's timeline, not yours. Don’t let the auto-migration make the decisions for you.

TL;DR

• Google is retiring Dynamic Search Ads, ACA, and campaign-level broad match starting September 2025. Auto-migration to AI Max is mandatory.
• AI Max for Search is the primary replacement for dynamic coverage within Search campaigns, combining dynamic targeting with automation in a single campaign type.
• Standard keyword-based Search campaigns remain, but AI Max will take on a much larger role going forward.
• Testing AI Max now gives you more control over setup, learning period, and performance than waiting for forced migration.
• Early tests show strong volume gains – in one JDM account, +240% clicks and +158% lead volume – but lower-funnel efficiency requires monitoring.
• AI Max works best as a volume driver at the top and mid-funnel, complementing high-efficiency keyword campaigns rather than replacing them.
• Best practices: give campaigns time to exit learning, don't over-constrain targeting, monitor search terms closely, and align conversion tracking to the right signals.
  

What ad types will advertisers have going forward?

With DSA phased out, AI Max for Search becomes the primary mechanism for dynamic coverage within Search campaigns. It essentially combines what DSA did, serving ads based on website content without keyword-level targeting, with broader automation and Smart Bidding integration.

Standard keyword-based Search campaigns remain available and aren't going anywhere. But AI Max will take on a significantly larger share of the work that advertisers previously split between keyword campaigns and DSA. It's less a direct swap and more a consolidation: one campaign type handling both the structured and the dynamic side of Search reach.

Should you migrate to AI Max now or wait for Google to do it?

Do it ASAP.

Auto-migration is convenient in the sense that you don't have to do anything, and that's also the problem with it. When Google migrates a campaign automatically, you inherit whatever setup decisions the system makes, without the context of having built it yourself, a learning baseline, or control over timing.

Testing AI Max now gives you more time in the setup process, more ownership of campaign structure and targeting inputs, and a learning period that runs on your terms before the broader migration creates noise across the account. Google is reporting approximately a 7% lift in conversions or value at similar efficiency for campaigns that have made the transition, but capturing that lift reliably requires a campaign structure intentionally built and monitored, not one that materialized overnight.

The migration is happening regardless. Arrive prepared, or catch up after the fact.

How has AI Max actually performed in early tests?

The volume gains are real and meaningful. In one test, AI Max drove a 240% increase in clicks and a 158% lift in lead volume compared to the baseline, a clear signal that it's unlocking incremental demand that keyword campaigns weren't reaching.

Efficiency, however, is a more nuanced story. Conversion rates and down-funnel metrics, SQL conversion rate in particular, tend to be lower early on, especially as the platform expands reach into audiences that haven't been through the funnel yet. That's not a flaw in the campaign type; it's a predictable consequence of broader targeting. The algorithm is finding new demand, and some of that demand takes longer to convert.

The pattern we've observed is that efficiency stabilizes as the model learns. Early-phase performance reflects the cost of expansion. As AI Max accumulates signal about which traffic converts downstream, optimization tightens.

That framing matters for how you evaluate AI Max internally. If you measure it against the CPL or SQL CVR benchmarks of a mature, high-efficiency keyword campaign, it appear to underperform, especially in the first few weeks. If you measure it as a volume lever with an eye on downstream quality as the campaign seasons, the picture is more accurate.

How has AI Max actually performed in early tests?

A few principles have consistently shaped outcomes in the campaigns we've run:

Give campaigns time to exit learning before making major changes. This is the most violated best practice in any automated campaign type, and it's especially consequential with AI Max. Early volatility is normal. Reactive structural changes during the learning phase reset the model and cost you the signal you've already accumulated.

Don't over-constrain targeting. AI Max performs best with broader inputs. Tight targeting restrictions limit the system's ability to find incremental reach, which is the primary reason to run it in the first place. Build guardrails through negatives and exclusions, not by narrowing the targeting aperture.

Monitor search terms closely and apply negatives to maintain quality. Broader reach means more exposure to irrelevant or low-intent queries. A disciplined negative keyword process is the main tool for keeping traffic quality in check as the campaign scales.

Align conversion tracking to the right signals. If AI Max is optimizing toward a conversion action that doesn't reflect real business value, a form start instead of a qualified lead, or a page view instead of a purchase, it will optimize efficiently toward the wrong outcome. Offline conversion tracking is particularly important here. The algorithm needs to know what happened after the click, not just that the click occurred.

Treat AI Max as a scaling lever, and pair it with funnel tracking to validate quality. It's most useful at the top and mid-funnel. The highest-efficiency, most intent-rich demand typically still belongs in well-structured keyword campaigns. AI Max finds the volume those campaigns miss, but whether that volume converts at acceptable rates downstream requires visibility you have to build deliberately. 

FAQs

What happens to existing DSA campaigns if I don't migrate before September?
Google will migrate them automatically. The campaigns will transition to AI Max without requiring manual action on your part, but you'll have less control over how they're structured and no learning history built under intentional management.

Can I keep running standard Search campaigns alongside AI Max?
Yes, and in most cases you should. Keyword-based Search campaigns remain available and are still the right tool for high-intent, high-efficiency demand where you want precise match control. AI Max complements that coverage, it doesn't replace it.

Will AI Max campaign performance look worse at first?
Potentially, yes, particularly on lower-funnel efficiency metrics. The platform expands reach, which means some early traffic will take longer to convert or won't convert at the same rate as traffic from tightly targeted keyword campaigns. This is expected behavior, not a signal that something is wrong. Efficiency typically improves as the model accumulates conversion signal.

How long should I give an AI Max campaign before evaluating performance?
At minimum, allow the campaign to exit the learning phase before drawing conclusions or making structural changes. Depending on conversion volume, that can range from a couple of weeks to longer. Campaigns with higher conversion velocity will stabilize faster.

What's the biggest setup mistake to avoid with AI Max?
Misaligned conversion tracking. If the campaign is optimizing toward the wrong signal, it will find that signal at high volume and low cost, and you'll have built a very efficient machine for generating the wrong outcomes. Get conversion tracking right before you scale. 

Ready to get ahead of the DSA migration? Reach out to the JDM team to talk through how AI Max fits into your Search strategy, or download our Growth-Stage Marketing Guide for broader context on how we approach paid search.