Each year, Google rolls out updates to its advertising platform that often reshape the way digital campaigns function across different industries. In July 2025, a significant update was released that had a major impact, particularly on advertisers running call-based campaigns and those operating in the energy, telecom, and political niches. This update not only caused performance fluctuations but also led to account suspensions, review delays, and technical glitches that disrupted lead generation efforts.
In this article, we will provide a comprehensive breakdown of the July 2025 Google Ads update, highlight its impact on various sectors (especially energy and telecom), and offer guidance for advertisers dealing with call ad inconsistencies. We will also explore how to adapt to these changes, protect your ad accounts, and continue driving results amid evolving ad policies.
1. Background: Annual Google Ads Update Cycle
Google typically releases major updates to its ad platform in Q2 or Q3 of each year. These updates often bring about new features, policy changes, or shifts in how ads are served. While these improvements are meant to enhance performance and compliance, they sometimes introduce temporary instability, especially for advertisers relying heavily on automation or specific ad formats like Call Ads or Video Action Campaigns.
The July 2025 update followed this pattern, causing several unexpected outcomes, including:
- Account suspensions
- Delays in ad approvals
- Clicks without resulting actions (e.g., phone calls)
- Sudden drop in conversion performance
- System bugs affecting reporting and campaign functionality
2. Case Study: Real-World Impact on Energy Campaigns
Let’s examine a real case of an energy campaign that ran on August 5, 2025, right after the July update. The campaign titled “Energy with Telecom Website” targeted energy leads in the United States using Call Ads.
Campaign Stats:
- Clicks: 32
- Impressions: 2.37K
- Avg CPC: $3.78
- Phone Calls (Reported): 24
At first glance, the numbers seem healthy, but the advertiser reported that no actual calls were received despite Google reporting 24 phone call interactions. This inconsistency highlighted a core issue post-update: Google’s reporting mechanism for Call Ads was malfunctioning, leading to fake or ghost call tracking.
This scenario was not isolated. Multiple advertisers reported similar concerns, especially in:
- Energy
- Telecom
- Financial services
- Home improvement
3. Key Changes in the July 2025 Google Ads Update
Here are the most important updates introduced in July:
a. Shared Ads Deprecation
- Effective Date: October 15, 2025
- Google will no longer support creating new shared ads (used across multiple ad groups).
- Existing shared ads will be automatically migrated to single-ad-group instances in Q1 2026.
- Metrics will not carry over to the new ads, impacting historical performance tracking.
Impact:
- Scripts and APIs using shared ad logic need immediate updates.
- Campaign performance may shift due to the split of ad instances.
b. Demand Gen Campaign Rollout
- Previous Format: Video Action Campaigns (VAC)
- New Format: Demand Gen campaigns
By July 2025, all VACs were automatically migrated to Demand Gen. This new format supports cross-channel visibility and is optimized for visual-first experiences across YouTube, Gmail, and Discover.
Impact:
- Some advertisers lost targeting granularity.
- Performance varied due to new algorithmic optimizations.
- Reportedly, Demand Gen drove up to 20% more conversions at the same CPA for some niches.
c. New Call Ads & Message Assets Policy
- Effective Date: August 1, 2025
- All new message and call assets require verified phone numbers.
- Non-verified numbers lead to disapprovals.
- Existing assets must comply by September 1, 2025.
Impact:
- Many Call Ads were silently disapproved without clear notifications.
- Ads were getting clicks but calls were not connecting, resulting in wasted budget.
- Users needed to re-verify business numbers using the new process.
d. AI-Powered Search Term – Landing Page Reporting
- Google introduced new reporting for AI-driven campaigns, linking search terms to the final landing page.
- Enhanced transparency but also caused temporary reporting bugs.
Impact:
- Advertisers experienced misalignment between reported data and user activity.
- Helped identify poor landing page relevance and keyword misfires once stabilized.
e. Political and Regional Ad Restrictions
- Google updated election ad policies in specific U.S. regions and Canada (especially British Columbia).
- Advertisers needed new verification and disclosure standards.
Impact:
- Delayed ad launches in sensitive regions.
- Non-compliance led to rejections or account suspensions.
4. Industries Most Affected
While Google said the updates would benefit advertisers long-term, several niches were disproportionately affected:
a. Energy & Solar
- High reliance on call-based leads
- Geotargeting complexity (based on ZIP codes and utility providers)
- Call Ads broken, resulting in loss of ROI
b. Telecom & Internet Providers
- Multiple campaigns using local phone numbers faced disapproval
- Affiliate and reseller marketers lost conversions due to silent call failures
c. Political Campaigns
- Political advertisers needed re-verification
- Disclosure formatting errors caused ad rejections
d. Home Services & Local Businesses
- Plumbing, roofing, HVAC, legal, etc. heavily rely on call ads
- Inaccurate call tracking disrupted business flows
5. Why Calls Were Not Being Received
Several factors caused the problem of “clicks but no calls”:
- Unverified numbers: Ads were still clickable but not forwarding calls to the right number.
- Carrier or forwarding failures: Due to API or telco-level bugs.
- Silent disapprovals: Ads still showed as active but were not fully functional.
- Call recording or call extension issues: Google silently updated how they track and report calls, which created data lags.
6. Best Practices After the July Update
To keep your campaigns stable and compliant, take the following steps:
a. Verify Phone Numbers
- Use the latest phone verification tool from Google.
- Ensure numbers are accessible, active, and compliant.
b. Audit All Call Extensions
- Replace older call/message assets with new verified ones.
- Remove deprecated shared call extensions.
c. Review Campaign Types
- Convert any lingering VACs to Demand Gen manually.
- Analyze performance shifts after migration.
d. Update API Scripts & Integrations
- If using automated bid management or reporting tools, review API version compatibility.
e. Monitor for False-Positive Suspensions
- If your account was mistakenly suspended, file an appeal with documentation.
- Watch out for policy flags around landing pages and phone numbers.
7. What to Expect Next
Google is expected to release further improvements in Q4 2025, especially focusing on:
- Enhanced call tracking accuracy
- More transparent disapproval notifications
- Expansion of AI-Powered campaign insights
Advertisers should stay alert for additional changes, especially if you work in regulated industries or rely heavily on phone-based conversions.
Conclusion
The July 2025 Google Ads update brought sweeping changes across the ad ecosystem, hitting hardest in industries like energy, telecom, and local services. While some of the improvements promise long-term benefits like better AI targeting and cross-channel reach, the short-term disruptions were real and costly for many.
If your Call Ads are showing clicks but you’re not receiving any phone calls, it’s likely due to the policy and system updates we’ve discussed. Don’t ignore it – verify your assets, update your campaigns, and stay agile in the face of future changes.
As always, the key to surviving (and thriving) in Google Ads is constant adaptation. Stay updated, audit often, and build campaigns that are resilient to change.
Need Help? If you’re facing issues with your Google Ads account or want help optimizing your campaigns post-update, feel free to connect. We’re actively working with clients across the U.S. to stabilize their energy and telecom campaigns.
English