- Ads in AI Mode target the context of user-AI conversations rather than individual keywords.
- Performance Max and AI Max campaigns will automatically feed into AI Mode ad placements.
- “Feed hygiene” is critical: outdated product data can exclude brands from AI recommendations.
- Google may introduce CPM-based pricing to account for multi-touch engagements in conversational search.
- Brands should audit feeds, refine creative for conversational flow, and pilot AI Mode campaigns ahead of Q4.
A deep dive into Google’s briefing for advertisers on the new AI-driven ad format.
When Google first introduced AI Mode earlier this year, many marketers viewed it as an evolution of its existing search experience—one that layered conversational, generative answers atop traditional blue links.
However, as internal briefings have revealed, Google’s ambitions extend far beyond providing richer responses: it plans to weave advertisements directly into the AI-driven dialogue itself. For agencies accustomed to keyword-based targeting, this shift demands a fundamental rethink of how campaigns are structured, optimized, and measured.
From Static Queries to Dynamic Conversations
In traditional search, advertisers select keywords and match types to trigger text or shopping ads. But in AI Mode, Google will evaluate the entire interaction—the series of prompts and follow-up questions—in deciding which ads to serve.
As one marketing executive involved in the rollout put it, “The big shift is from queries to conversations.” Instead of bidding on discrete terms, brands must now consider how their messaging fits into a fluid exchange between user and AI, anticipating the context that triggers ad placements.
This departure from query-level targeting carries profound implications. An ad for running shoes might once have appeared when someone searched “best trail sneakers.” In AI Mode, the same ad could surface midway through a multi-step planning session about “how to prepare for a week-long hiking trip,” seated alongside contextual suggestions from Google’s own knowledge graph.
Brands that grasp how AI weaves recommendations into ongoing dialogues will command the most prominent placements.
What Agencies Learned at Google’s Briefing
Ahead of the expected Q4 expansion, Google convened a series of workshops with select agencies, peeling back the curtain on how AI Mode ads will function. Participants received an internal playbook detailing:
- Targeting Criteria: Ads will tap into conversation signals—intent, sentiment, and even pacing—rather than isolated keywords.
- Eligible Campaigns: Performance Max and the newly launched AI Max for Search will automatically route existing assets into AI Mode placements.
- Creative Formats: While text ads remain core, shopping ads enriched with product images and price details will appear in carousel style beneath AI answers, clearly labeled as “Sponsored.”
- Data Requirements: “Feed hygiene” took center stage in every session. Agencies were reminded that outdated or incomplete product catalogs could disqualify a brand from appearing when AI Mode generates recommendations.
A pivotal slide from the briefing underscored the need for fresh creative that aligns with conversational flow—brand messages must read like natural extensions of an AI-generated paragraph, rather than jarring interjections.
Advertiser Feedback and Early Results
Although Google declined to share specific performance metrics, spokespeople told Ad Age that brands running AI Mode placements are already seeing “incredible results.”
Agencies report that click-through rates on AI-embedded ads match or exceed traditional search benchmarks, while the novelty of the format has driven higher top-of-funnel engagement. That said, some marketers question whether users will continue to interact with ads presented in a chat-style interface, or whether comprehension fatigue may dampen click behavior over time.
For now, agencies balancing curiosity with caution are experimenting with hybrid campaigns—maintaining existing keyword buys while testing small budgets against AI Mode placements to gauge lift in impressions and conversions.
Early anecdotal evidence suggests that brands with strong thought-leadership content—white papers, tutorials, and how-to guides—find their ads appearing in highly relevant conversation threads.
Rethinking Metrics: Beyond CPC to CPM and Conversation Value
One of the most pressing questions raised at the briefing was how Google plans to monetize AI Mode long-term. Traditional pay-per-click models hinge on discrete user actions, but in a dialogue environment, a single conversation may spawn multiple ad exposures before a click occurs. Google hinted at new cost-per-thousand-impressions (CPM) options that reward brands for maintaining visibility throughout AI exchanges, rather than per-click charges.
This emerging economic model forces agencies to reframe their performance goals. Rather than optimizing solely for click-through rates or cost-per-acquisition, advertisers must now consider conversation value: the degree to which an ad contributes positively to an AI-led discovery journey.
Measuring that intangible benefit will require new analytics dashboards that blend traditional search metrics with AI Mode-specific insights—data that Google promises to surface in the coming months.
Preparing for Q4: Steps to Optimize AI Mode Campaigns
With the holiday season approaching, brands eager to capitalize on AI Mode must act swiftly. Agencies should:
- Audit Product Feeds: Confirm every SKU is accurately represented, with up-to-date metadata and imagery.
- Adapt Creative Assets: Craft headline and description copy that reads seamlessly in AI responses, and produce high-resolution product imagery optimized for in-chat display.
- Align Content Strategy: Integrate thought-leadership articles and tutorials into landing pages to match the exploratory nature of AI queries.
- Test Incrementally: Launch pilot budgets on Performance Max or AI Max campaigns, monitoring lifts in impressions, clicks, and assisted conversions tied to AI Mode traffic.
Brands that embrace these preparatory steps will be able to refine placements and creative before Google widens availability ahead of Q4, ensuring they reach consumers engaged in AI-driven discovery.
Balancing Innovation and Effectiveness
Google’s pivot toward conversational search represents an inflection point in digital advertising. By embedding ads within AI dialogues, the company aims to maintain search’s ad-supported model even as user behaviors evolve.
Yet questions persist:
- Will users value sponsored suggestions as they do organic AI answers?
- Can AI Mode deliver the same ROI as traditional search?
- And will impression-based pricing models prove sustainable for marketers?
As Google charts this new territory, agencies must be ready to adapt—rethinking creative, measurement, and campaign structure to thrive in a world where conversations, not just queries, drive advertising outcomes.
