AI Mode Ads: The Future of Google Ads You Can’t Ignore

What Is AI Mode & Why Should You Care?

AI Mode is Google’s new conversational search experience powered by Gemini 2.0. Launched in early 2025, it offers deep, multi-step responses instead of traditional result pages and Google is now placing ads directly inside those conversations.

In May 2025, Google confirmed that both text Search ads and Shopping ads are showing within AI Mode and AI Overviews on desktop and mobile, first in the U.S., and set to expand into additional English-speaking markets later in the year.

Google is already pitching AI Mode advertising to agencies and brands, and a broader rollout is expected before Q4 2025.

 

https://youtu.be/EQwWAa1cFTs

 

What Campaigns Are Eligible?
Google has confirmed that ads shown in AI Mode will be pulled from existing campaign types:

• Search campaigns with Broad Match (including AI Max)
• AI Max for Search campaigns (with Smart Bidding)
• Standard Shopping campaigns (feed hygiene is critical)
• Performance Max (PMax) campaigns

Demand Gen and DSA campaigns are not yet included.

 

Key Advantages and Challenges

 

✅ Benefits
AI Mode handles longer, more exploratory queries—often 2× longer than traditional searcheswith deeper context for more accurate ad matching.

Ads are served based on the full conversation context, not just keywords.

You can reach users earlier in their decision journey than with traditional search alone.

 

⚠️ Challenges
Click-through rates may drop since AI Overviews provide comprehensive answers.

Smaller advertisers may struggle due to data and budget requirements needed for AI optimization.

Advertisers with poor data quality or feed hygiene may miss out on AI ad placement.

 

Best Practices for Google Ads in AI Mode
1. Use AI‑powered Targeting
Adopt Broad Match, AI Max for Search, and PMax campaigns to access keywordless, query-based targeting. This gives AI room to match your ads to complex user intents.

2. Keep Product Feeds Clean
Ensure your Shopping feeds are complete and accurate with product titles, descriptions, prices, images, shipping details, and promotions.

3. Focus on Ad & Landing Copy
Your copy should align with AI language in responses: direct, helpful, and context-aware. Make sure your landing pages are optimized for relevance.

4. Adopt Smart Bidding Strategies
Use Smart Bidding (ROAS or Exploration) to let Google’s algorithm optimize bids for AI-driven queries.

5. Simplify Account Structure
Trim down excessive keywords and campaign sprawl. Focus your budget on fewer, stronger campaigns.

6. Track Performance & Adapt
AI Mode is evolving. Monitor whether ads show within AI Mode vs. traditional search and adapt as Google improves reporting.

 

Q&A Google AI Mode Ads

 

Q1: What are AI Mode Ads in Google Ads?
AI Mode Ads are advertisements that appear inside Google’s AI-powered search results, also called AI Overviews. They use conversational context rather than traditional keyword targeting and are served from Search, Shopping, Performance Max, and AI Max campaigns.

 

Q2: Which campaign types are eligible for AI Mode Ads?

Google AI Mode Ads can currently serve from:

• Search campaigns with Broad Match keywords
• AI Max for Search campaigns with Smart Bidding
• Standard Shopping campaigns with optimized feeds
• Performance Max (PMax) campaigns

Demand Gen and Dynamic Search Ads (DSA) campaigns are not eligible for AI Mode placement as of 2025.

 

Q3: Why are AI Mode Ads important for advertisers?
AI Mode Ads help advertisers reach users in conversational and exploratory searches, which are often longer and context-rich. They allow brands to appear early in the buying journey, in searches that traditional keywords may miss.

 

Q4: What challenges do advertisers face with AI Mode Ads?Key challenges include:

1. Lower click-through rates due to AI answers reducing clicks
2. Eligibility restrictions for accounts without Smart Bidding or Broad Match
3. Need for clean product feeds and first-party data
4. Budget requirements for campaigns to exit the AI learning phase

 

Q5: How can advertisers prepare for AI Mode Ads?
To prepare for AI Mode Ads, advertisers should:

• Use Broad Match, PMax, and AI Max campaigns with Smart Bidding
• Optimize product feeds with complete attributes
• Consolidate campaigns to focus budgets
• Create multiple responsive ad creatives for AI testing
• Ensure GA4 and GTM conversion tracking is accurate

 

Q6: How many users currently see AI Mode in Google Search?
As of 2025, over 100 million users are using Google AI Mode or AI Overviews, with a broader rollout expected before Q4.

 

Q7: Can small advertisers compete in AI Mode Ads?
Yes, but small advertisers face challenges because AI campaigns need at least 30 conversions and a healthy daily budget to optimize effectively. Consolidating campaigns and using Smart Bidding can help smaller accounts compete.