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Google Redesigns How Search Ads Are Labeled

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  • 27th Nov, 2025

Have you heard about Google Ads new updates? As part of this, Google has recently redesigned how search ads are labeled. This update reflects Google’s ongoing effort to make advertising more transparent, user-friendly, and aligned with evolving search behaviour. Google wants to make it easier for visitors to discern between sponsored results and organic results by improving ad labels and visual clues. It also provides advertisers with a more transparent framework for how their ads show up on the search results page.

Now, let us take a deep dive into these Google Ads updates, explain what’s changed, and discover what they mean for both users and advertisers.


Understanding the New Sponsored Labels on Google Search


The Google Ads benefits​ in this redesign are that grouping all text ads under a single "Sponsored results" label, which is larger and remains visible as users scroll. Previously, individual ads had their own "Ad" labels. This new labeling system is designed to make the difference between ads and organic search results clearer for users. The update also includes a "Hide" option for sponsored results, giving users more control over their search experience. This detailed redesign is being rolled out globally.


How the Update Affects Google Ads and Advertisers


These Google search updates significantly reshape how ads appear and perform on Google Search. From enhanced transparency to AI-driven optimisation, advertisers must understand how these changes influence visibility, user behaviour, and campaign strategy. Below are the points that break down the key impacts of the Google Ads latest updates:


How Google’s Search Update Improves Transparency


The new Google sponsored links label is intended to provide greater transparency, helping users more easily navigate the top of results pages and distinguish commercial content. Google's goal is to uphold industry-leading standards by making it clear which results are sponsored.


Impact of the New Sponsored Results on Ad Visibility & CTR


While the new design aims for clarity, it could also influence user behaviour. The larger, persistent "Sponsored results" label may draw more attention to paid listings, potentially impacting clickAds for click-through rates. However, with the addition of a "Hide" button, users have the option to remove sponsored results, which could affect overall ad visibility.


Updating Your Google Ads Strategy for the Latest Changes


Advertisers need to adjust their strategies to align with these changes. Google Ads continues to emphasise precision targeting and AI-powered automation to maximise return on investment (ROI). Leveraging AI-powered ad campaigns and automation in bidding strategies will be crucial in 2025. For instance, Performance Max campaigns utilise AI to deliver ads across various Google networks, including Search, Display, YouTube, Gmail, Maps, and Discover, optimising in real-time to achieve specific goals.


The Evolving Role of AI in Google Ads


AI continues to transform Google Ads, making it more automated and data-driven. In 2025, AI enhancements will further streamline how products are listed, displayed, and optimised for sales in Google Shopping ads. Google's AI tools require proper guidance from advertisers to fit business objectives.

Other Key Google Search Updates

According to Google Search Central, Google has made several other noteworthy changes in addition to ad labelling.  The second official core update of the year, the June 2025 Core Update, was released between June 30 and July 17.  Additionally, Google introduced a nearly infinite scroll in mid-September 2025 after disabling the previous pagination of search results.  In its search rankings for 2025, Google is also giving the Google Ads blog that is human-written, reliable content, precedence over content produced by artificial intelligence.


How Do Google Sponsored Ads Work?


Are you curious about how Google sponsored search results in the ads work? Here are the key points that explain the benefits of Google Ads this process:

  • Advertisers place bids on keywords, audiences, or placements using Google Ads’ bidding system.
  • When a user performs a search, an auction is triggered if ads target the related keywords.
  • In many cases, no ads appear, and only the most relevant ads are selected for display.
  • Google Ads provides a self-serve tool that helps advertisers create, manage, and monitor their campaigns.
  • By appearing in front of people actively searching for specific products or services, Google Ads helps businesses increase sales, generate leads, and boost website traffic.


Summing Up


With the Google Ads new updates, the redesigned “Sponsored results” label marks a major shift in how ads are displayed, understood, and engaged with on Search. Google wants to make the search experience more transparent and user-friendly by implementing user-controlled ad visibility, a persistent "Sponsored results" header, and clearer labelling. For advertisers and businesses, these changes highlight the need for smarter strategies, especially those that leverage AI-driven optimisation, Performance Max campaigns, and precise audience targeting. 
Staying aligned with these updates will ensure better visibility, stronger CTRs (Click Through Rates), and higher ROI (Return on Investment) across Google’s ad ecosystem. With Clickthrown, remain competitive in 2026 and beyond and maintain your Google Ads strategy as Google continues to change the way sponsored search results operate.


FAQs About Google’s New Sponsored Ads Update


1. What changed in Google’s new ad labelling update? 
Google replaced individual “Ad” labels with a single, larger “Sponsored results” label that stays fixed as users scroll. This increases transparency and aids in separating advertisements from organic results.


2. Will CTR be impacted by the new sponsored label?
Yes, the persistent label may impact click behaviour. Some users may skip ads more often, while others may find ads clearer and more trustworthy.


3. Can users hide Google sponsored ads now? 
Yes. Users can now remove sponsored results from their view using a new "Hide" button, which could impact the ad visibility.


4. How should advertisers adjust their strategy? 
Advertisers adjust their ad strategies through implementing AI-driven campaigns, enhancing ad quality, fine-tuning keyword targeting, and utilising Performance Max for multi-network optimisation.


5. How do Google sponsored ads work? 
Google Ads runs an Ad auction every time a user searches. Ads are shown based on bids, keyword relevance, and ad quality. Only the most relevant ads will appear.