Google is rolling out ads within AI Mode, its conversational search interface, starting in the US and India.
The update introduces new ad formats designed to fit naturally into AI-powered results, with a broader push expected in Q4.
AI Mode is Google’s multimodal search experience that blends traditional web results with AI-generated summaries. It’s already been controversial, due to a reported lack of clickthrough rates. Our conversation with Profound’s Ben Grosse revealed that AI Mode is also one of the worst platforms for affiliate citations, quoting affiliate sites in around 2.83% of its answers.
According to internal documentation, ads in AI Mode will be drawn from existing Search, Shopping, and Performance Max campaigns and are designed to align with both the user’s query and the content of the AI-generated response.
Google says the goal is to identify commercial intent and insert relevant ads as a “helpful next step” in the user journey.
The move signals a clear decision from Google on how it will position ads within its AI environments. There has been a lot of speculation on how AI platforms will monetise. OpenAI’s Sam Altman has mostly gestured towards affiliate or platform fees. Google, however, appears to be replicating its ad format from traditional search, surfacing sponsored results directly in the chat.
To optimise for AI Mode, Google is urging publishers to prioritise utility, helping users complete tasks or find key information. The company has also released optimisation guidance for website owners, focused on quality content, visual media, and technical accessibility.
Advertisers are required to use Google’s AI-powered targeting tools, including Broad Match and fully automated campaigns like Performance Max, to participate.
The update was confirmed at Google Marketing Live India in July, where the company announced the arrival of AI-powered search ads in the country through both AI Overviews and AI Mode.
For now, the programme is live in the US and India, in English, across mobile and desktop. More regions and languages are expected to follow.