Why Do 80% of Brazilian Advertisers Underutilize Google Ads AI? Here's the Fix!

The advertising landscape is evolving at an unprecedented pace, with AI-driven tools like Google Ads AI and Gemini 2.5 Pro setting new benchmarks for performance and efficiency. Yet, in Brazil, a staggering 80% of advertisers use at least one Google Ads AI feature, but only 2% fully leverage its capabilities. This gap represents a massive missed opportunity—inefficient campaigns, lower ROAS (Return on Ad Spend), and stagnant revenue growth.

The launch of Gemini 2.5 Pro, Google’s most advanced AI model, on March 26, 2025, underscored the urgency for advertisers to embrace AI. With enhanced reasoning, coding, and multimodal capabilities, AI is no longer just a tool—it’s a competitive necessity. This report explores why Brazilian advertisers lag in AI adoption and provides actionable solutions to bridge the gap.

I. Key Reasons for Underutilization

1. Misaligned KPIs: Revenue vs. Volume

Many Brazilian advertisers still operate under outdated performance metrics, prioritizing lead volume (CPA) over revenue impact (ROAS). This focus on quantity rather than quality often leads to inefficient campaigns that fail to align with broader business objectives. For instance, Cogna Education, a leading education network, initially measured success through lead generation. However, after shifting to ROAS-driven strategies, they achieved 78% higher profits than projected. This case highlights the importance of integrating business data (e.g., sales, CRM) into Google Ads to enable AI-driven optimizations. Without this alignment, AI tools cannot fully unlock their potential to drive revenue growth.

2. Lack of Cross-Team Synergy

The disconnect between marketing and finance teams is another critical barrier. While CMOs focus on brand awareness and engagement, CFOs prioritize profitability and cost efficiency. This misalignment often results in fragmented strategies that hinder AI adoption. For AI to deliver optimal results, organizations must break down silos and establish revenue as the common language. Centralizing data from platforms like Google Analytics and CRM systems allows AI to optimize campaigns holistically. Companies like Claro demonstrate the power of cross-functional collaboration—by aligning marketing and finance teams around shared revenue goals, they achieved 138% more conversions and 38% lower CPA.

3. Limited Creative & Media Experimentation

A staggering 80% of campaigns in Brazil lack creative diversity, relying on generic messaging that fails to resonate with diverse audiences. AI thrives on variety—without diverse creatives, its optimization capabilities are severely limited. Claro’s initial campaigns, for example, used a one-size-fits-all approach focused on price promotions. By adopting Google’s Hero Factory methodology, they identified niche audience segments (e.g., gamers, travelers) and tailored creatives to their preferences. This shift led to a 138% increase in conversions. The lesson is clear: AI-driven creativity requires continuous testing and iteration. Tools like Test & Learn enable advertisers to rapidly experiment with new messaging, formats, and audience targeting.

4. Measurement Challenges

Many Brazilian advertisers using Google Ads struggle to quantify the impact of branding campaigns, often pitting them against performance-driven efforts. This false dichotomy ignores the time-lagged effect of brand equity, where branding efforts drive sales over time. Google’s Brand Economics Program (BEP) addresses this challenge by measuring branding ROI through AI-powered econometrics. BEP integrates search intent signals, brand lift metrics, and financial data to provide a holistic view of campaign performance. For instance, Bayer’s sustainability campaign leveraged YouTube ads and BEP to track brand recall and preference, resulting in 20M+ impressions and measurable ROI. Without advanced measurement tools like those within Google Ads, advertisers risk undervaluing branding’s long-term revenue potential.

5. Budget & Resource Constraints

AI-powered advertising on Google Ads requires robust data infrastructure and flexible budgets, yet many Brazilian advertisers lack the resources to invest. Static budgets prevent AI from dynamically reallocating spend based on real-time performance. Performance Max campaigns on Google Ads, which automate budget allocation across channels, offer a solution. Claro’s use of Performance Max enabled AI to adjust spending dynamically, driving 20% of their conversions. For smaller businesses, starting with a single AI feature (e.g., Smart Bidding) within Google Advertisement can provide a low-risk entry point. The key is to view AI as a revenue driver rather than a cost center, justifying incremental investments.

II. How to Fix It: Actionable Solutions

1. Shift from Volume to Revenue Logic

Adopting ROAS as the primary KPI is the first step toward AI-driven growth. Cogna’s success demonstrates the power of aligning marketing efforts with revenue outcomes. Integrating CRM and sales data into Google Ads allows AI to optimize for high-value conversions. Topkee is a digital marketing company that focuses on ROAS as its collaboration goal. With professional consultants who delve deep into the industry, we analyze consumer journeys and purchasing pathways to tailor KPI solutions for brands, effectively ensuring a steady stream of customers and rapidly growing revenue.

2. Break Down Silos & Align Teams

Cross-functional collaboration is essential for AI success. CMOs and CFOs must work together to define shared revenue goals. Centralizing data in platforms like Google Analytics 4 (GA4) enables AI to optimize across the entire customer journey. Bayer’s sustainability campaign, developed in partnership with Google, exemplifies this approach—by aligning creative, media, and measurement teams, they achieved 20M+ impressions and strong brand lift.

3. Embrace AI-Driven Creativity

Diversifying creatives is critical for AI optimization. Google’s Hero Factory and Test & Learn frameworks empower advertisers to test multiple ad variations efficiently. Topkee’s creative production services enhance this process by combining AI-generated text/image ideas with designer expertise, ensuring high-impact creatives tailored to market trends. The AI-driven creative workflow helps brands rapidly prototype and test ad variations, similar to Dove’s success with segmented messaging.

4. Improve Measurement with AI Tools

Advanced measurement tools like Google’s Brand Lift and Brand Economics Program (BEP) enable advertisers to quantify branding ROI with precision. By integrating these tools with first-party data (e.g., CRM, GA4), businesses can attribute long-term revenue impact to branding efforts. Topkee’s attribution remarketing strategies further enhance this process—using TTO tools to analyze user behavior and conversion paths, advertisers gain granular insights into how branding campaigns influence downstream purchases. The TMID-based tracking generates customizable URLs to monitor ad performance across themes, media, and creatives, similar to BEP’s econometric modeling.

5. Optimize Budget Allocation for AI

AI-driven budget tools like Performance Max and Smart Bidding dynamically allocate spend based on real-time signals, maximizing efficiency. For businesses with limited resources, starting with Topkee’s TTO initialization can streamline budget management—its centralized platform automates conversion tracking and cross-account budget synchronization, mirroring Performance Max’s automation logic. Small businesses can also adopt Smart Bidding as a low-barrier entry point; Topkee’s keyword research tools, combined with broad match and AI bidding, ensure budgets prioritize high-intent audiences.

III. Case Studies: Success Stories

1. Cogna Education

By shifting from lead-based metrics to ROAS, Cogna achieved 78% higher profits. Their use of Test & Learn to refine creatives and media strategies underscores the power of AI-driven experimentation.

2. Claro

Claro’s adoption of Hero Factory led to 138% more conversions and 38% lower CPA. Personalized messaging for gamers and travelers drove higher engagement, proving the value of audience-specific creatives.

3. Bayer, Unilever, Uber, Sephora

These brands leveraged AI-powered video campaigns to drive 20M+ impressions and measurable brand lift. Their success highlights the importance of creative diversity and advanced measurement.

Conclusion

The underutilization of Google Ads AI in Brazil stems from misaligned KPIs, siloed teams, and limited experimentation. However, brands like Cogna and Claro demonstrate that AI-driven strategies can unlock significant revenue growth. By adopting ROAS, embracing AI creativity, and leveraging advanced measurement tools, Brazilian advertisers can bridge the adoption gap. Start with one AI feature—Performance Max or Smart Bidding—and scale from there. For tailored guidance, consult a Google Advertisement expert to maximize your AI potential.