Google just revealed how major retailers are leveraging AI-powered advertising tools to transform their holiday strategies and customer acquisition. With brands reporting up to 7X return on ad spend and 80% higher click-through rates, the tech giant's latest case studies show how companies like Rare Beauty, L'Oréal, and Louis Vuitton are winning the extended three-month holiday shopping marathon through smarter, AI-driven campaigns.
Google is reshaping retail advertising with AI, and the results are staggering. The company just dropped a comprehensive look at how leading retailers are using its advertising platform to navigate the dramatically shifted holiday landscape - turning what used to be a frantic two-week sprint into a strategic three-month marathon from October through New Year's.
The timing couldn't be more critical. As VP of Retail at Google Ads Courtney Rose explains, consumers are becoming more deliberate with purchases while AI continues transforming how they search and discover products. This creates both challenge and opportunity for retailers who need to meet shoppers wherever they are in an increasingly fragmented journey.
Rare Beauty exemplifies this new approach. Targeting savvy Gen Z audiences, the cosmetics brand leaned heavily into AI-powered ad solutions to ensure maximum visibility across Google's ecosystem. By incorporating YouTube into their search strategy, they didn't just reach more eyeballs - they drove significantly higher search volume from both new and existing customers, ultimately achieving a remarkable 7X return on ad spend.
But it's not just about reach anymore. L'Oréal, the global beauty giant, proves precision matters just as much. Using Google's AI Max to identify new search opportunities and boost ad relevance, they achieved a 2X higher conversion rate while cutting cost-per-conversion by 31%. The secret weapon? AI Max's search term matching unlocked conversions from entirely new queries like "what is the best cream for facial dark spots?" - questions retailers might never have anticipated manually.
The omnichannel revolution is equally compelling. Louis Vuitton implemented an omnichannel bidding strategy for its Damier Fine Jewelry collection launch, seamlessly driving traffic to stores and call centers while maintaining robust online sales. The results speak volumes: 41% higher omnichannel ROAS compared to traditional e-commerce bidding across both the US and France, with e-commerce ROAS still increasing by 7%.