Google is preparing to launch a wider rollout of ads within AI Mode, its AI-powered search feature. According to a report from AdAge, the company is pitching ads in AI Mode to advertisers and marketers.
An internal document shared with advertisers included a page titled “Ads in AI Mode” and detailed how ads will work inside this new interface. The rollout is expected to ramp up significantly before the fourth quarter.

A part of the document reads: "Be part of our most powerful AI search experience, as customers explore their biggest questions with AI Mode." "As we apply the power of Generative AI to Search, Ads will continue to play a critical role in helping consumers find helpful information and enabling businesses to be discovered online."

AI Mode ads will be context-based, not keyword-based

Google has said from the start that it plans to monetize AI Mode. In May, it began testing ads in the feature in the U.S. It stated that AI Mode will include Search and Shopping ads, with placements available on both desktop and mobile.

According to Google’s pitch, ads will appear in AI Mode based on the entire content of the conversation between the user and the AI, not just the initial query. Google’s system will target ads based on both the search prompt and the entire flow of the conversation that happens within the AI-generated response. 

For instance, if a user asks a more complex question, the AI will generate a contextual response, and Google’s ad targeting system will analyze that full interaction before placing an ad. “The big shift is from queries to conversations,” a marketing executive told AdAge, explaining how this alters the structure of search sessions.

This new format differs from traditional search ads that are triggered by keywords. Ad placements will now rely on how people engage with the AI over time, not just the first thing they type. However, the ads in AI Mode will remain text-based, similar to traditional search ads, along with shopping listings that show product images and prices.

Performance Max and AI Max campaigns will extend into AI Mode

Ad Age says campaigns run through Google’s automated tools, such as Performance Max and AI Max for Search, will automatically be eligible to appear in AI Mode. But Google also made it clear that “feed hygiene is critical.” That means product data needs to be accurate and up to date, or ads risk being left out of these AI-powered results.

AI Mode is Google’s bet on the future of search

Google introduced AI Mode in May, calling it the company’s “most powerful AI search” tool. The tool is Google’s answer to generative AI chatbots like Perplexity and ChatGPT. According to Google, AI Mode includes features like multimodal inputs (text, voice, images), and will handle deep conversations with follow-up questions, and provide richer answers.

CEO Sundar Pichai said during the company’s most recent earnings call that over 100 million users are now using AI Mode in the U.S. and India monthly. The tool has recently expanded to the UK, showing that Google is building momentum globally.

Google will face competition from other AI companies

Google has the likes of Perplexity to contend with. The startup is already experimenting with ads in its chatbot. Perplexity is offering “sponsored follow-up questions” as a way to include branded suggestions in its conversational flow. These are labeled as ads, but they’re written by the AI, not the brand, and served based on related queries. Perplexity charges advertisers on a CPM (cost per thousand impressions) basis.

OpenAI is also not ruling out ads in ChatGPT. Still, Google is pushing forward with integrating ads into its AI Mode interface and preparing agencies for a different kind of campaign planning.
A Google spokesperson told Ad Age that the company is “seeing incredible value” from the early stages of AI Mode advertising. “And we are excited to share with our partners how they can also be discovered and connect with customers in AI Mode,” the spokesperson added.

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