May 2025 Digital Marketing Update: Meta AI Shakeup, Google Lawsuit & SEMrush’s New Quiz Tool

Well, May 2025 has turned out to be anything but quiet in the digital marketing world. From Meta’s AI revolution to a courtroom clash involving Google in the UK, not to mention a new quiz tool that’s making waves thanks to SEMrush and Riddle. There’s a lot to unpack. Whether you’re managing a small business or strategizing for a global brand, these updates carry real implications for your day-to-day campaigns.

Let’s cut through the noise and dig into what actually matters.

Meta’s AI Reboot: The Game Changes. Again

Meta just pulled a major pivot by rolling out a significant overhaul of its AI infrastructure across Facebook, Instagram, and WhatsApp Ads. I first heard rumblings about this late last month from a media buyer I collaborate with regularly. By early May, the changes were already disrupting audience precision.

So, what exactly changed?

Meta’s new AI isn’t just smarter. It’s leaner and, frankly, more aggressive. Powered by Llama 3, it now automates ad placements, copy optimization, and even creative adjustments in real time. Yes, real time.

The upside? For those running broad-scope campaigns across platforms, performance has improved. CTRs are seeing modest lifts, and early reports from ad buyers at mid-sized agencies suggest ROAS is trending upward. Particularly in fashion and eCommerce verticals.

But there’s a catch: Custom targeting has taken a hit. Several marketers in my network have flagged concerns that niche audience segments are harder to isolate now. This shift leans heavily on the AI’s learning loop, and unless you’re feeding it strong creative and ample data, you may get sandwiched between brands with bigger datasets.

“Meta’s AI is now playing chess while most advertisers are still playing checkers,” said Jacob Breen, Director of Paid Media at a UK-based performance agency. That felt spot-on.

If you rely on manual tweaks and hyper-targeted granularity, now’s the time to rethink your structure. Start testing broader inputs and let the AI cook. But keep a close eye on your metrics.

Google’s UK Legal Battle: Data Privacy on Trial

There’s trouble brewing in London. Google is staring down a class action lawsuit brought forward by a coalition of UK publishers and digital rights organizations. The central issue? How user data gets collected, shared, and repackaged across its ad stack. Especially within DV360 and the Search Ads 360 ecosystem.

Here’s what we know so far:

• The case hinges on allegations that Google’s auction dynamics are undercutting competition and mishandling personal data.
• Filing documents reference proprietary ad exchange algorithms (similar to what came out during the U.S. DOJ trial).

I had a call last week with a legal consultant who works directly with data privacy compliance teams in the EU. According to them, this case could reshape how ad data is permissioned across borders.

While verdicts likely won’t crystallize until late 2025 or early 2026, you should start brushing up your compliance workflows now. If you’re using lookalike audiences or tracking behaviors without explicit consent, that’s a risk you can’t afford to ignore anymore.

Platforms like Quantcast and OneTrust have already released new advisory frameworks to address “post-cookie consent fatigue.” Worth looking into if you haven’t already.

SEMrush Teams Up with Riddle: Interactive Content Gets a Power Boost

This one? Huge for content marketers like me who are obsessed with turning eyeballs into email addresses.

SEMrush, already a big player in SEO and analytics, has partnered with Riddle to release a new quiz marketing tool. And let me tell you. It’s slick.

Last week I spent an hour tinkering with the beta version for a client campaign in the wellness niche. We built a “Which Sleep Style Are You?” quiz in under 15 minutes, complete with lead capture, segmentation, and CRM integration.

What impressed me most?

• Fully customizable design (not that clunky stuff we used to deal with)
• Automatic scoring logic. No coding required
• Native integrations with HubSpot, Mailchimp, Salesforce, and more

Early results? That sleep quiz outperformed our static lead gen landing page by 41% in conversion rate. And because quiz respondents self-select info, the leads are higher quality, too.

Interactive content isn’t just a fun gimmick in 2025. It’s a serious pipeline enhancer. If you’re still relying solely on ebooks and pop-ups, you’re leaving qualified leads on the table.

Performance Max (PMax) Gets Smarter: Here’s What to Watch

Google isn’t slouching either. Their Performance Max campaigns got another matte-black upgrade this month.

The standout update: image asset prioritization. Marketers can now guide the system using anchor visuals, helping Google’s AI contextualize and weight specific creatives over others.

Finally, right?

For those managing high-volume campaigns, this is a real relief. Just last quarter, a B2B SaaS client of ours saw wild ROAS swings due to creative asset shuffling. We had no visibility into why a dull stock photo outperformed a polished explainer video. Now we do.

If you haven’t revisited your PMax asset group structures lately, now’s the moment. Google recommends isolating product themes for maximum clarity. Don’t just dump all your assets in a single bucket.

Temu’s Global Ad Strategy is Wild. And It’s Working

One name you’ll keep seeing this year? Temu.

Yes, that Temu. The online marketplace juggernaut that went viral for shockingly low prices. Besides giving Amazon a real headache, Temu’s ad strategy is breaking some sacred performance marketing rules, and winning anyway.

Let’s talk numbers:

• Temu’s TikTok ad spend surged 32% in April 2025 alone (as per AppMagic)
• Their average cost-per-install (CPI) on Android is 38% lower than the category benchmark

What’s their secret sauce?

They’re flooding channels with aggressively short product demos, leaning into frictionless checkout CTAs, and hyper-localizing creatives. I examined several of their EU ads this month. They don’t just translate, they adapt culturally. Smart doesn’t even begin to cover it.

Here’s what we can learn: sometimes high-volume, lower-quality creative does outperform meticulously crafted content. Testing velocity matters more than polish. And the global market? It’s hungrier for fast, cheap, and functional than many marketers care to admit.

What This Means for Marketers

This month’s shake-ups scream one message loud and clear: Adapt or get left behind.

Meta is putting creative direction fully in AI’s hands. Google is facing intense scrutiny that may alter how we access user data. SEMrush and Riddle are showing that lead gen doesn’t have to suck. PMax is finally giving us more control. And Temu is redefining what “performance” even looks like.

Whether you’re on a scrappy startup team or managing six-figure ad budgets, this is the time to double down on experimentation. Relying on “what used to work” is like bringing a knife to a gunfight.

So here’s your move:

• Embrace structured creative testing across all platforms
• Sharpen your consent and data ethics game now, before regulators do it for you
• Inject interactivity into your content calendar (quizzes are a solid start)
• Monitor AI-driven shifts in platform behavior like a hawk
• Keep a weird, confused eye on Temu. They just might be writing tomorrow’s playbook

Feeling overwhelmed? Don’t be. You don’t have to master everything. Just start by improving one thing next week. That first tweak builds momentum.

Frequently Asked Questions

What is Meta’s new AI update and how does it affect advertisers?

Meta’s latest AI overhaul, powered by Llama 3, focuses on automating ad placements, creatives, and optimizations in real time. While it enhances performance for broad campaigns, it limits granular audience targeting. Advertisers need to pivot from manual segmentation to feeding higher-quality creative and broader data signals into the system.

Will Google’s UK lawsuit change how advertisers track users?

It’s possible. The outcome could redefine how user data is collected and used in ad auctions, especially in Europe. Advertisers should proactively review consent mechanisms and ad tech partners to avoid non-compliance risks as regulations evolve.

How can the SEMrush x Riddle quiz tool help my business?

This tool helps marketers create customizable quizzes that double as lead generation machines. With CRM integration, automated scoring, and strong conversion potential, it’s ideal for businesses looking to engage users while collecting robust first-party data.

What updates were made to Google Performance Max campaigns in May 2025?

Google added image asset prioritization, giving marketers more control over which visuals the algorithm promotes. This helps ensure that brand-consistent or high-performing assets are spotlighted, improving campaign coherence and potentially boosting ROAS.

Why is Temu’s ad strategy successful despite being unpolished?

Temu values speed and testing volume over production quality. Their localized, product-focused creatives and aggressive multi-channel approach allow them to understand what converts faster. It’s a data-led strategy that prioritizes reach and response over polish.

Should I still invest in traditional lead magnets in 2025?

They’re not obsolete, but their effectiveness is waning. Interactive and personalized content. Like quizzes and assessments. Are proving more engaging and effective in capturing higher-quality leads. Consider blending both into your strategy.