Ads play a significant role in generating revenue for Google. However, after the advent of generative AI, traffic on Google Ads has decreased significantly. To regain its status and better assist its customers, Google can introduce ads to AI search results. The brand may adapt its traditional advertising approach to an AI-driven search mode.
Now, Google displays some websites in the results, so if people want to research more, they can click on a website. AI Mode Ads on Google Search can change the game for businesses of all sizes. They would have more opportunities to show their products in AI search results.
But what are AI Mode Ads, really? And how can your business benefit from them? Let’s keep it simple.
What Are AI Mode Ads?
It means running ads in the conversation between the AI and the user. These ads could be designed to appear within or beneath AI-generated answers. But it is different from traditional keyword-based targeting. When users are in in-depth conversations with AI mode, some ads can appear top, bottom, or in the middle of the conversation.
Currently, AI overviews are available in 200+ countries, and ads in AI overviews are available in English in the US on Mobile and Desktop devices. Google is planning to expand them to other English-speaking countries. It is also planning to expand them to AI Mode results, it would have a “Sponsored” label on it.
They are presented after considering the user query and the content shown in the result. For now, text and shopping ads, shopping, and performance max campaigns are eligible to be displayed beneath the AI overview.
Benefits of Ads in AI Mode and AI Overviews
Showing ads in Google AI results can be helpful in different ways. Often, people look for a website link and the best product recommendations while reading in AI mode and AI overviews. So, introducing ads can open various opportunities for businesses and digital marketers.
1. Shorten the Journey From Search to Action
With Ads in AI Overviews and AI mode, your business can show up directly in answers where people are already engaged. People not only gain information, but they can also take action without having to scroll down or leave the conversation. Since users will get information faster and more easily, your ad will help them move from discovering something to making a decision quickly. You also get to reach them early in their search journey.
2. Be the Obvious Next Step
Since your user is already reading AI-generated results, showing ads in the context of the AI overview will be easy. Your ads will be more likely to be clicked by the user. Moreover, ads will not only be based on the query the user has searched, but also on the context of the conversation. This can make your business stand out as the clear next choice for users.
3. Tap Into New Customer Moments
AI Mode breaks down complex searches and emerging questions. This allows your ads to appear in unique, high-intent moments that were previously difficult to target. Businesses will then have to deeply understand the user’s intent and the way content is presented in AI mode and AI overview results.
4. Real User Value
According to Google’s data, people actually find ads in AI Overviews useful. Because these ads help users connect with the right businesses, products, or services at the exact time they are ready to take action.
How Ad in AI Mode Would Work?
Based on an analysis of AI overview ads, our experts tried to figure out how AI mode ads will work.
AI Overviews appear when someone searches for something that doesn’t have just one correct answer. These are usually complex questions, which is why AI tries to pull info from different websites and help the customers with a summary.
Example: If someone searches, “What’s the best workout routine for busy moms?”, there isn’t a straightforward answer. Google might create an AI overview that combines different pieces of advice from various health blogs, fitness trainers, and lifestyle sites.
Now, here’s where ads come in:
- Ads show up only in certain situations. Google checks if the search has commercial intent, basically, if the user might be looking to buy something or hire a service.
- If Google finds high-quality ads that are relevant to both the search query and the AI mode results themselves, then those ads can appear within the conversation, at the top, or at the bottom.
Example: In the “best workout routine for busy moms” query, if you run a fitness app or sell home workout equipment, your ad could appear right alongside the AI Overview. This can make your business the natural next step for someone ready to take action.
For this, you don’t have to set up anything new. Your existing Search, Shopping, or Performance Max campaigns are already eligible. If your ad wins the auction and aligns with both the user’s query and the AI mode content, it can show up there automatically.
Example: Let’s say someone searches, “Which shoes are good for marathon training?”. The AI Overview might summarize shoe features from different sports blogs. If your eCommerce store is running ads for “lightweight running shoes” and wins the ad auction, your ad could be displayed right there in the AI Overview and AI mode results. This way, your brand can reach the user at the perfect moment.
Take a close look at the images below and imagine the possibilities of displaying ads. Since AI overviews in the US have already started to show ads, you can think of opportunities for your brands to appear there.
Will AI Mode Ads Be Beneficial for Your Business?
Yes, businesses can benefit a lot from AI Mode Ads. Unlike traditional ads, where they manually pick keywords and adjust bids, AI Mode Ads use artificial intelligence to do the heavy lifting.
AI studies user behavior, selects the most relevant keywords, and adjusts bids in real-time. This means your ads will be shown to people who are more likely to take action. For small businesses, AI Mode Ads can be more cost-friendly because they make every dollar work harder. For eCommerce, they create personalized experiences by showing the right products to the right people at the right time.
For example, salons or plumbers can target local customers exactly when they need the service. In short, AI Mode Ads will shorten the customer journey, improve ROI, and help businesses connect with potential buyers at the right moment.
But It’s Not Always Rainbows and Butterflies
Not everything is positive about the AI mode ads. Your business might struggle to appear in the results. AI mode ads could be less effective. Here is why:
- Limited Control: You may not have manual control over keywords, bids, and targeting. AI makes decisions, which may not always match your brand strategy.
- Data Dependency: AI learns from data. If your campaigns don’t have enough quality data, the system may show ads to the wrong audience.
- Higher Competition: Since many businesses will use AI Mode Ads, competition in auctions may increase, making clicks more expensive.
- One-Size-Fits-All Approach: AI may not fully capture unique selling points or niche audiences, which manual campaigns sometimes target better.
- Performance Fluctuations: AI experiments with strategies. In the early stages, businesses may see inconsistent results before the system “learns.”
- Over-Reliance on Automation: Without human oversight, businesses risk missing opportunities or creative ad strategies that AI can’t replicate.
So, Should You Bet on AI Mode Ads?
By blending ads into AI-generated answers, Google is opening doors to reach people in the exact moment they are searching. That’s powerful.
Yes, there are challenges like limited control, higher competition, and dependency on data. But there’s also a huge opportunity to make your brand the obvious next step in a customer’s journey. Imagine your fitness app showing up when someone’s asking about workout plans. It’s a great feeling.
You may be thinking that it’s a great opportunity, but with a lot of competition. But it’s worth a try.
