Google Redesigns How Search Ads are Labeled

Google Redesigns How Search Ads are Labeled

Google’s updates search ad labelling, enhancing transparency and influencing user behaviour.

Every day, billions of people turn to Google Search for information, and its goal is to help them find it seamlessly. To make navigation even easier, there is an update on showing ads on Search.

Text ads on the search results page would now be grouped with a single “Sponsored Results” label. This new, larger label stays visible as people scroll, making it clear which results are sponsored- upholding industry-leading standards for ad label prominence.

“Hide sponsored results” control is being added, enabling you to collapse text ads with a single click. The new design helps in navigating the top of the page more easily, keeping the size of ads the same and still never seeing more than four text ads in a grouping.

Why this Matters to Advertisers

Bidding, quality score, ranking, and the maximum number of ads (up to four in a block) all remain the same.

Grouping ads influences how users perceive them.

When ads are visually separated from organic listings, the difference between the two becomes more intentional.

Reviewing results may cause users to pause and determine whether or not to engage with the sponsored block. For lower intent searches, this could result in fewer casual clicks. For high-intent queries, the impact may be negligible. This increases the strain on the advertisement’s quality. Clear value propositions, relevant marketing, and good alignment with search intent matter even more.

Being at the top is still beneficial, but if people are more conscious of what they’re clicking, visibility by itself won’t ensure engagement.

While the upgrade is mostly visual, advertisers should keep a watch on performance as it fully rolls out across mobile and desktop. A few areas to watch include:

• Modifications to Impression-to-Click CTR patterns
• Differences in engagement based on the question
• Any vertical-specific impact where users are more likely to hide ads

Why did Google make this Change?

This is owing to user testing and feedback, and for creating more consistent and transparent experiences across all ad formats. This reflects increasing expectations around clarity in search results as AI-generated content becomes more common.

By making it easy to recognize sponsored content, Google is signalling that paid placements can be both visible and trustworthy as long as they are clearly labelled.

This ultimately helps in maintaining long-term confidence in search results as the interface continues to evolve.

The subtle design changes represent one of Google’s most significant user experience redesigns in years- one that could change how consumers see and interact with paid listings, particularly as collapsed ads compete with organic results for attention.

Google updates ad arrangements across its Search interface globally, potentially amping up competition for visibility and user attention. Google states that the new design helps users navigate the top of results pages more easily and would better distinguish commercial results from organic listings- especially on mobile devices.

What does it mean for Google?

This redesign is as much about trust as it is about polishing the user experience. Google needs to preserve user confidence as it integrates more AI-driven experiences into Search, and clear labelling is part of that effort. Further, giving users more control over their ad experience indicates improved transparency, but it reminds advertisers that even trusted placements can shift overnight.

Brands that rely heavily on search visibility need to rebalance paid and organic SEO strategies. They should further test how collapsed ads change click-through rates and revise bidding tactics to maintain a share of user attention in increasingly competitive results pages.

Moving Towards a More Transparent SERP

Google is constantly evolving how ads appear on its search engine results pages (SERPS). This is latest shift that was spotted in 2025 is the introduction of the Sponsored Results Header, which is a single label grouping multiple ads under one consolidated header instead of marking each ad individually.

Previously, ads on Google’s SERP were individually tagged with “Ad” or “Sponsored”. Now, Google is grouping all paid ads under a single Sponsored Results Header at the top of the page. Instead of multiple small “Ad” tags, users see on header above a clock of ads, clearly separating organic listings from sponsored ones.

The Sponsored Results Header marks a significant shift in how ads are displayed on Google’s SERPs. For businesses, this means rethinking ad placement, messaging, and budget strategies. For users, it means clearer distinctions between paid and organic results.

One thing is certain: ignoring this update can cost you clicks, conversions, and market share. By partnering with Squarezix, you’ll have a PPC strategy that not only adapts but thrives in this new era of advertising.

Search has always been a balance between visibility and trust. Advertisers who adapt early and continue to prioritize useful, high-quality messaging would be in the best position to maintain performance as the SERP continues to evolve