A new generation of ads for the AI era of Search

Google is integrating Gemini models into Search ads to create more helpful, conversational experiences that mimic the natural research process. The article announces two new ad formats for AI Mode—Conversational Discovery ads and Highlighted Answers. Conversational Discovery ads dynamically generate ad copy tailored to specific user queries, such as comparing home scent solutions, by highlighting relevant product features.

Highlighted Answers surface sponsored recommendations directly within AI Mode’s list of suggestions, such as language apps for travel. Both formats include an independent AI explainer that transparently evaluates product or service information, labeled as 'Sponsored' to maintain trust. Key data from the article reveals that 75% of users report faster, more confident decisions using AI Mode.

For decision-makers, these formats require a shift from static keyword targeting to intent-based, context-aware strategies. Beyond AI Mode, Google is launching AI-powered Shopping ads, which use Gemini to generate custom product explanations for searches like espresso machines, and Business Agent for Leads, which embeds a chatbot in ads to answer user questions in real time, turning static forms into interactive lead generation. The Direct Offers pilot is also expanding: promotion bundling allows brands to combine discounts and giveaways into compelling deal packages; native checkout integrates with UCP merchants for faster purchase completion; and travel partners like Booking and Expedia can surface deals within AI trip planning.

Actionable insights: Advertisers should prepare structured product data and guardrails to enable Gemini’s creative generation, invest in conversational ad copy that addresses nuanced queries, and explore chatbot integration for lead gen. The emphasis on transparency and user trust means ads must deliver genuine value, not just promotional content.