Google offers new AI-powered ad formats for search

As Google transforms search into an AI-driven experience, it was only a matter of time before AI-powered ads came into play. As part of its Google I/O week announcements, the company previewed how Gemini-powered conversational ads will begin appearing in search results. Fortunately, all new AI-generated ad formats will be labeled as “sponsored.”

Google is testing two new AI ad types, both powered by “an independent AI explainer.” First, conversational discovery announcements will appear in AI Mode replies. The company explains to its advertisers that “your ad answers a person’s specific question.” (Who among us hasn’t dreamed of having ads answering our questions?) Then there are “highlighted answers,” which insert ads into AI mode’s recommendation lists. For example, if you ask about the best language apps, a sponsored entry for Duolingo might pop up.

Standard Google Search will also receive AI ads in the coming months. AI-powered Shopping Ads are suitable for “big” purchases. (Google examples include a refrigerator, television, or espresso machine.) When you search for any of these items, sponsored products will appear in AI-powered search results. As the company explains to its advertisers, “Gemini will grab your most relevant products and instantly write a personalized explanation highlighting why your product may be the right choice for them.”

Then there is Business Agent for Leads. This Gemini-based ad format places an “intelligent brand agent” (a personalized chatbot that speaks as a representative of the company) in search ads. For example, a student researching colleges might see a box with a “Chat” or “Ask a question” button in a sponsored search result.

Finally, Google’s Direct Offers feature is expanding to include more personalized offers. You’ll start to see things like AI-powered product bundles, giveaways, and local coupons. Meanwhile, a built-in payment feature lets you find deals without leaving search, and you’ll also start seeing personalized travel deals in AI-assisted travel planning.