Step-by-Step Guide: Boost ROI with First-Party Data & AI in Google Ads

The advertising landscape is undergoing a seismic shift. With the phasing out of third-party cookies, marketers are increasingly turning to first-party data to fuel their campaigns. This shift, coupled with the rapid advancements in artificial intelligence (AI), is revolutionizing how personalized campaigns are designed and executed in Google Ads. As Ahmet Baş and Michał Protasiuk, researchers at Google Advertisement, highlighted in 2025, the focus on short-term gains often leaves marketers blind to the long-term value of their investments. Their findings reveal that advertisers who fail to measure the holistic impact of their campaigns could be missing out on half of their potential ROI. This blog explores how the convergence of first-party data and AI is shaping the future of personalized campaigns, offering insights into real-world applications, challenges, and opportunities for marketers.

I. The Importance of First-Party Data in Modern Marketing

The decline of third-party cookies has forced marketers to pivot toward first-party data, which is collected directly from users through interactions with websites, apps, and other owned platforms. This data is not only more reliable but also aligns with evolving privacy regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

First-party data offers unparalleled insights into customer behavior, preferences, and purchasing patterns. For example, LuisaViaRoma used its customer data platform (CDP) to enrich its first-party data, enabling more precise targeting and optimization of Google Ads campaigns. However, leveraging first-party data is not without challenges. Low conversion volumes, data privacy concerns, and the need for robust data infrastructure can pose significant hurdles.

Despite these challenges, the opportunities are immense. First-party data allows marketers to create hyper-personalized Google Ads campaigns that resonate with their audience. It also enables better attribution, as marketers can track customer journeys more accurately. For LuisaViaRoma, the integration of first-party data with AI-powered predictive models resulted in a 36% boost in sales, demonstrating the transformative potential of this approach.

II. AI-Powered Predictive Models: Transforming Campaign Optimization

AI-powered predictive models are revolutionizing how marketers optimize their campaigns. These models analyze user behavior—such as page views, cart additions, and time spent on site—to assign conversion probabilities. This enables marketers to target "hot" (high-intent) and "cold" (low-intent) audience segments more effectively.

For instance, LuisaViaRoma partnered with Google and technology consultancy Making Science to implement Gauss Smart Advertising, an AI-powered predictive model for Display & Video 360 campaigns. The model assigned different values to user actions, such as scrolling a product page versus adding an item to the cart. This allowed the retailer to focus its advertising efforts on users most likely to convert, resulting in a significant increase in sales and ROAS.

Another example is Travelstart, an African online booking platform, which shifted from volume-based to value-based bidding using AI within Google Ads. By prioritizing the revenue value of each booking, Travelstart increased its revenue by 27% year-on-year. These examples underscore the benefits of AI in campaign optimization, including improved efficiency, higher conversion rates, and better ROI.

Similarly, Topkee’s AI-driven solutions offer advanced predictive analytics to enhance campaign performance. By leveraging tools like TTO for precise conversion tracking and TM for customized customer behavior analysis, Topkee enables businesses to implement value-based bidding strategies. Their AI-powered keyword research and creative production tools further ensure that ads are not only targeted but also highly engaging. Through intelligent segmentation and personalized remarketing strategies, Topkee helps businesses significantly outperform traditional ad targeting methods, driving far better conversion rates.

These advancements highlight the transformative potential of AI in campaign optimization, empowering marketers to make data-driven decisions and maximize their ROI.

III. Integrating First-Party Data and AI: Best Practices

To fully harness the power of first-party data and AI, marketers must adopt best practices in data collection, infrastructure, and campaign execution. A robust Customer Data Platform (CDP) is essential for centralizing and analyzing first-party data. Tools like Google Cloud Platform and Vertex AI can further enhance data processing and predictive modeling capabilities. For example, Topkee’s TTO tool offers seamless integration with CDPs, enabling precise conversion tracking and data synchronization across multiple Google Ads accounts. This ensures that marketers can leverage unified data insights to optimize their campaigns effectively.

Agility and experimentation are also critical. Marketers should embrace flexible organizational models to test and refine AI - powered Google Ads strategies. For instance, LuisaViaRoma conducted low - cost experiments to validate the effectiveness of its predictive model before scaling it across campaigns. Similarly, Topkee’s TM tool allows marketers to customize tracking rules based on specific campaign goals, facilitating rapid testing and iteration. This iterative approach not only reduces risks but also accelerates innovation, enabling marketers to stay ahead in a competitive landscape.

Measuring success beyond conversions is another key consideration. While sales and ROAS are important metrics, marketers should also track additional KPIs like click - through rates (CTR) and customer lifetime value (CLV). These metrics provide valuable insights into consumer behavior and campaign effectiveness, enabling marketers to make data - driven decisions. Topkee’s advertising report analysis tools offer comprehensive insights into campaign performance, including budget control, CTR improvement, and conversion quality. By leveraging these insights, businesses can refine their strategies and maximize long - term ROI.

IV. Sustainability and AI: The Future of Marketing

Sustainability is becoming a critical focus for marketers, and AI is playing a pivotal role in driving sustainable practices. Tools like Google Advertisement’ Carbon Footprint for Ads help marketers measure and reduce the environmental impact of their campaigns. For example, Carwow, a UK-based car buying platform, used this tool to reassess its carbon emissions and re-prioritize its sustainability strategy.

AI-powered solutions also enable marketers to align campaigns with consumer values and sustainability goals. According to a recent analysis, ads that combine sustainability messaging with brand themes perform 54% better in terms of creative effectiveness. This highlights the importance of integrating sustainability principles into both creative development and campaign delivery.

Collaborative efforts, such as the Ad Net Zero initiative, are further promoting sustainable practices in digital advertising. By leveraging first-party data and AI, marketers can contribute to a more sustainable future while achieving their business objectives.

V. Future Trends and Opportunities

The future of personalized campaigns in Google Advertisement lies in the continued evolution of AI and first-party data. Generative AI, for instance, holds immense potential for creating dynamic and personalized ad creatives. LuisaViaRoma is already exploring this technology to innovate its content creation strategies.

Long data—information collected over extended periods—combined with AI-driven insights will also play a crucial role in predictive analytics and market forecasting. Tools like Google Trends and share of search provide valuable insights into consumer behavior, enabling marketers to stay ahead of trends.

The integration of marketing mix modeling (MMM), experiments, and direct attribution will further enhance campaign measurement and optimization. AI enables dynamic, real-time adjustments, ensuring that campaigns remain effective in a rapidly changing market.

Conclusion

First-party data and AI are indispensable for the future of personalized campaigns in Google Ads. Predictive models, value-based bidding, and sustainable practices are transforming marketing strategies, enabling marketers to achieve better results while addressing privacy and environmental concerns. Marketers must invest in data infrastructure, embrace agility, and leverage AI for continuous innovation. By doing so, they can stay competitive in a rapidly evolving digital landscape. Collaboration and experimentation will be key to unlocking the full potential of AI in marketing.