Winning the Festive Season: How Hong Kong Businesses Can Leverage Google Ads’ Latest AI Tools for Maximum ROI
The festive season represents the ultimate market test for Hong Kong businesses competing for consumer attention and spending. With new Google Ads AI-powered features rolling out throughout 2025, savvy brands have unprecedented opportunities to maximise their return on investment during this critical trading period. As a digital marketing agency in Hong Kong with deep expertise in Google’s advertising ecosystem, we’ve witnessed firsthand how these innovations are transforming festive campaign performance.
The Evolving Festive Landscape in Hong Kong
Consumer behaviour is shifting dramatically. According to a Google research, last year 34% of shoppers had already started their holiday shopping in July, up from 27% the previous year (Google Ads Help, Holiday Optimisation). This extended shopping season demands more sophisticated, AI-driven approaches that can adapt to rapidly changing consumer behaviour.
Furthermore, about a third of consumers in surveyed markets are spending more time making decisions (30%), considering more brands (30%), and considering more stores or retailers (29%) (Google Ads Help, Must-Do’s for Holiday Performance). Understanding these shifting patterns is crucial for crafting winning strategies that capture demand across multiple touchpoints.
Google’s AI-Powered Tools: The Game-Changers for Festive Campaigns
Performance Max Evolution
Performance Max campaigns received substantial enhancements in 2025 specifically designed for competitive periods like the festive season. Campaign-level negative keywords, which launched in beta at DMEXCO 2024, rolled out to all advertisers in early 2025 (Google Ads Blog).
As an online marketing agency in Hong Kong specialising in performance-driven results, we’re particularly excited about the high-value new customer mode. This feature allows businesses to specify high-value customers through Customer Match, enabling Google AI to predict which new users are likely to maximise lifetime value and bid accordingly.
The addition of brand and demographic exclusions provides unprecedented control over campaign targeting. Hong Kong businesses can now ensure their festive promotions reach precisely the right audiences whilst excluding segments that historically underperform, maximising every advertising dollar during this critical period.
Asset Studio: AI-Powered Creative at Scale
Google announced Asset Studio at Think Week 2025 as the centralised creative destination for Google Ads (PPC Land). For Hong Kong businesses preparing festive campaigns, this means dramatically faster turnaround times and the ability to test multiple creative variations at scale.
Asset Studio integrates Imagen 4, Google’s advanced text-to-image model, enabling businesses to generate high-quality visuals that resonate with audiences. According to Google’s announcement, “Asset Studio serves as the one-stop-shop for bringing your creative vision to life with generative AI tools supporting entire creative workflows”.
A Hong Kong jewellery retailer, for instance, can instantly generate images of their pieces in elegant festive party settings, whilst a food brand can showcase their products in family gathering scenarios, all without expensive photoshoots or lengthy creative production timelines.
Product Studio Video Capabilities
Product Studio, accessible through Merchant Center or the Google & YouTube app on Shopify, now generates videos based on product images. The AI-powered tool customises videos to match your brand, adjusts images, and writes scripts highlighting product qualities.
For festive campaigns, this capability is transformative. Hong Kong businesses can create engaging video content showcasing products in holiday settings without video production expertise or significant budgets.
AI Max for Search: Capturing New Festive Intent
Google launched AI Max for Search campaigns globally this year, bringing AI-powered targeting and creative enhancements that help advertisers capture richer signals of intent.
According to Google’s data, advertisers activating AI Max in Search campaigns typically see 14% more conversions or conversion value at similar CPA/ROAS. For campaigns still mostly using exact and phrase keywords, the uplift averages 27% (Google Ads Blog, May 2025).
How AI Max Works for Festive Campaigns
AI Max expands reach into new queries using broad match and keywordless technology. Google AI learns from your current keywords, creative assets, and URLs to show ads on more relevant searches/queries and conversions you’d otherwise miss.
For Hong Kong businesses, this means capturing festive demand from unexpected search patterns. When consumers search for “last-minute Christmas gifts Central” or “corporate hampers Hong Kong delivery today,” AI Max helps your campaigns appear even if you haven’t explicitly bid on these specific terms.
Text customisation (formerly “automatically created assets”) generates new headlines and descriptions based on your landing pages, ads, and keywords. Google’s ability to generate assets featuring clear calls-to-action and unique selling points has improved significantly.
Demand Gen: Visual-First Festive Engagement
Demand Gen campaigns, which replaced Video Action campaigns in 2025, consolidate advertising formats across YouTube, Discover, and Gmail. For Hong Kong’s mobile-first consumers, this consolidation creates powerful opportunities for festive marketing across multiple touchpoints.
Video Format Innovations
Video enhancements rolling out in 2025 allow Google AI to automatically create more versions of existing videos, unlocking additional YouTube inventory and performance opportunities (Google Ads Help, Performance Max Features).
The flip video ads feature intelligently adapts your original video format to create videos in new aspect ratios, preserving key elements across YouTube Ads’ diverse formats. For festive campaigns, this means creating once and deploying across all placements efficiently.
Product Feed Integration
New product feed integrations allow users to view full product details directly from Demand Gen ads. According to recent updates, real-time in-store availability features help drive foot traffic to physical locations, enabling optimisation for both online and in-person sales (Accelerated Digital Media, March 2025).
For Hong Kong retailers with physical presence, this capability addresses a critical festive season need: helping consumers find products immediately whilst shopping in districts like Central, Causeway Bay, or Tsim Sha Tsui.
Shopping Ads Innovation: Virtual Try-On and Google Lens
Google’s Virtual Try-On (VTO) capabilities create immersive festive shopping experiences. Hong Kong’s tech-savvy consumers increasingly expect these interactive features, particularly when making fashion and accessory purchases.
Implementation Best Practices
To maximise VTO effectiveness during festive campaigns:
- Add high-resolution product images (minimum 1024 pixels)
- Include images showing products on front-facing models or lying flat
- Ensure consistent lighting and backgrounds across product ranges
- Update imagery regularly with seasonal variations
Hong Kong businesses selling eligible products are automatically opted into VTO, but proactive optimisation of product imagery significantly improves performance.
Google Lens Shopping Integration
Google Lens integration in Shopping and Performance Max campaigns enables consumers to search visually and discover products instantly. When Hong Kong consumers use Google Lens to photograph festive gift ideas, your products can appear as sponsored results in real-time.
According to Google, this placement connects advertisers with people when they’re ready to buy, appearing in the right context at critical decision moments.
Strategic Implementation: Your Festive Success Roadmap
4-6 Weeks Before Peak Season
Google recommends adjusting campaign budgets and ROAS targets using Performance Planner and demand forecast features 4-6 weeks before peak season (WordStream, Holiday Strategies 2025). Hong Kong businesses should analyse previous festive performance data and apply seasonality adjustments to account for dramatic conversion rate shifts.
According to Google’s guidance, implement seasonality adjustments when expecting 30%+ increases in conversion rates during short periods, such as three-day flash sales (Google Ads Help, Must-Do’s).
Remove budget caps on high-performing campaigns to avoid missing unexpected demand spikes. The festive season is not the time for conservative budgeting, consumer intent is high, and competition is fierce.
2-3 Weeks Before Peak Season
Launch festive creative variations using Asset Studio’s generative AI capabilities. Create multiple versions of ad copy and imagery that speak to different festive moments like family gatherings, corporate gifting, self-reward purchases, and post-festive sales.
According to Google’s holiday guidance, 72% of retail marketers find consumer insights helpful in planning holiday marketing strategies. Use Google Ads’ category-level insights on performance and demand trends to refine your approach.
Implement Product Studio to generate seasonal lifestyle imagery that resonates emotionally with Hong Kong consumers. Show your products in festive contexts that reflect local celebrations and traditions.
During Peak Season
Monitor performance continuously and apply Google’s AI-powered recommendations in real-time. According to internal Google data, advertisers who regularly optimise their ads see up to 12% higher conversions compared to those who don’t (VIDEN, Think Retail 2024 Insights).
Set up budget alerts to get notified when you’re missing traffic during high-volume periods. Use product diagnostics in Google Ads to identify issues like out-of-stock inventory, high bidding targets, or missing feed information that could hinder festive performance.
Post-Festive Period
Don’t abandon campaigns immediately after Christmas. Consumer behaviour data shows that “deal-seeking is an ‘always-on’ behaviour not tied to a single sales day,” with 75% of holiday shoppers keeping their eyes open for promotions throughout the holiday shopping season (Think with Google, Holiday Sales Season).
The “new year, new me” mentality drives significant January spending in Hong Kong. Adjust messaging to focus on new year resolutions, self-improvement, fresh starts, and post-festive deals whilst maintaining campaign momentum.
Understanding the 4D’s Consumer Mindset Framework
Google introduced the 4D’s framework at Think Retail 2024 to help advertisers understand holiday shopper mindsets: Deliberate, Deal-Seeking, Determined, and Devoted (VIDEN, Think Retail 2024).
Deliberate Shoppers
These consumers plan ahead, conducting research well before seasonal moments. According to Google research, 59% of holiday shoppers know what gifts they’re buying heading into December (Think with Google, Holiday Sales Season).
For Hong Kong businesses, this means starting festive campaigns early and providing comprehensive product information, reviews, and comparisons to support deliberate decision-making.
Deal-Seeking Shoppers
These consumers maintain constant vigilance for promotions. Strategies should include clear promotion assets in Google Ads, highlighting specific offers, and scheduling assets to run during relevant festive periods.
Determined Shoppers
These consumers exhibit last-minute shopping urgency. Performance Max for store goals helps capture this segment by promoting specific business locations, product promotions, and fulfillment options like buy online pickup in-store.
Devoted Shoppers
Following key shopping moments, many consumers continue shopping for their own enjoyment. In the first two months of 2024, more than 40% of shopping searches on Google mentioned a brand or retailer name.
This presents opportunities for Hong Kong businesses to earn brand loyalty extending beyond the festive period through positive experiences during peak shopping moments.
Why Partner with an expert Digital Marketing Agency
The complexity of Google Ads‘ AI-powered features, combined with the high stakes of festive campaigns, makes expert guidance invaluable. A specialised performance marketing agency in brings several critical advantages:
Local Market Expertise: Understanding Hong Kong’s unique festive shopping patterns, consumer preferences, and competitive landscape ensures campaigns resonate culturally and commercially.
Technical Proficiency: Implementing advanced features like AI Max for Search, Asset Studio, and Performance Max high-value customer mode requires deep platform knowledge and hands-on experience with the latest releases.
Resource Efficiency: Festive campaign management is resource-intensive. Partnering with an agency allows internal teams to focus on operations whilst experts handle campaign optimisation and real-time adjustments.
Proven Results: Agencies with Google Partner status access advanced features, beta programmes, and direct support. All these advantages translate into better festive performance and competitive positioning.
The Digital Nomads Hong Kong Advantage
As a Google Partner with extensive experience in festive campaign management, we’ve helped diverse businesses—from food retailers to luxury brands and hospitality providers—achieve exceptional festive results through strategic Google Ads implementation.
Our approach combines international best practices with intimate Hong Kong market knowledge. We recognise that festive success is not simply about adopting new features, but about developing cohesive strategies that align AI capabilities with business goals and local consumer behaviour.
Conclusion: Your Festive Opportunity Awaits
The 2025 festive season represents an unprecedented opportunity for Hong Kong businesses willing to embrace Google Ads’ AI-powered innovations. From Performance Max enhancements to AI Max for Search, Asset Studio to Product Studio video capabilities, the tools are available to dramatically outperform previous festive campaigns.
Success requires more than awareness—it demands strategic implementation, continuous optimisation, and deep platform expertise. Whether you’re scaling a startup or managing enterprise campaigns, partnering with a trusted online marketing agency in Hong Kong ensures you maximise every festive opportunity whilst competitors struggle with complexity.
The festive season is approaching rapidly. According to Google’s data, shoppers are already starting their research and purchases earlier each year. Businesses that begin planning early, apply AI-driven features with strategic intent, and collaborate with experienced partners are poised to secure the majority of festive season revenue.
Don’t let this critical trading period pass without leveraging the full power of Google’s advertising innovations. The combination of AI-powered tools, strategic expertise, and local market knowledge creates the perfect formula for festive success.
Ready to transform your festive campaign performance? Contact Digital Nomads Hong Kong for a complimentary strategy consultation and discover how our expertise can drive measurable festive success for your business.