Google has taken its AI mode a step further by introducing ads within the feature, confirming the news to Adweek in early March. AI mode, a new AI-driven search feature launched by Google to answer multi-step user queries, will blend advertisements directly into the AI’s responses. While ads have yet to appear in AI mode, the search giant reported that they will “leverage learnings” from the advertisements already running in AI overviews to shape their marketing strategy in AI mode. By embracing AI-driven campaigning, this evolution presents new opportunities in digital marketing for small businesses, enabling them to reach potential customers through a more personalized and integrated approach.
The Rise of AI Mode
Google’s AI mode is a search feature powered by the company’s advanced Gemini 2.0 system. This mode enables users to engage in more nuanced and multimodal interactions with Google Search, providing answers in a conversational tone. In its early stages, this feature allows users to input text, voice, or images to get responses tailored to their specific needs. However, this latest move of integrating advertisements marks a shift in how Google intends to monetize its AI search experience.
How Ads Will Be Integrated
Google is known for refining its advertising strategy to match the behavior and expectations of its users. With AI Mode, the company seems to have designed its strategy based on its previously successful experience with AI Overviews. Unlike traditional display ads, which appear as separate elements on a webpage, promotions here are positioned below AI-generated responses under a “Sponsored” listing. Launched in October, these campaigns, extracted from advertisers publishing Search and Shopping campaigns, have been met with positive responses from consumers.
However, advertisers do not have direct control over how their campaigns will appear in AI Overviews, as the formats are designed to match user queries. Instead, Google automatically tailors relevant content based on user data, which has reported better engagement and higher click-through rates compared to traditional web listings. In essence, this new feature is an evolution of Google’s existing ad model, aiming to deliver more personalized content to its users.
What This Means for Marketers
For businesses, this represents a new frontier in search marketing, albeit with important concerns from industry experts. As AI mode is created with conversational search features to deliver dynamic and efficient responses, advertising professionals expressed concerns about the effectiveness of campaigns. Melissa Mackey, a marketing professional, remains skeptical about advertisements in AI mode despite finding ads in AI Overviews “compelling” as they may seem intrusive to user experience. Ads in AI Overviews, she stated, “do a better job of answering user questions than the regular search engine results pages, so if an advertiser has a well-targeted ad that answers a user’s question, it’s likely to perform well.” However, when it comes to campaigns in AI mode, she advised that “Advertisers will need to get creative to capture attention and pull users away from the conversation in order to be effective.”
Another marketing specialist, Navah Hopkins, predicts that “There might be lower click-through rates as the goal of AI Mode is to answer the question as completely in the chat.” Hopkins also raised concerns over potentially higher cost-per-click floors and expenses, as AI-powered search results could be classified as premium inventory. Given the possibility of lower click-through rates as compared to traditional search campaigns, this could result in lower return on investment for brands. As advertisers don’t have access to information such as auction dynamics or creative formats, Hopkins stated that it’s “hard to make predictions on performance and … adoption” for AI Mode ads.
The Future of Search Advertising
The integration of advertisements into Google’s AI Mode marks a bold experiment in the future of search marketing. It’s a shift that challenges traditional advertising formats by automating the placement of campaigns based on user data. With AI-powered search engines providing comprehensive and intuitive responses to complex user queries, advertisers must innovate their strategies to develop engaging and creative ad formats that blend seamlessly with the AI’s content. While the full impact is still to be seen, marketers will need to pay close attention to how campaigns are presented and how users respond.
Looking Ahead
With ads being part of the AI-generated results, businesses can utilize this new opportunity to its full benefits by outsourcing to affordable digital marketing services. By understanding the benefits and challenges of evolving search behaviors, these third-party experts can refine how users interact with your brand’s campaigns. Ultimately, businesses that adapt quickly to these changes will be better positioned to capitalize on the growing potential of AI-driven advertising.
