Key Takeaways
- Google is revolutionizing its search experience with AI-driven features like AI Mode and AI Overviews.
- Advertising is adapting to these changes, with ads now being tested directly within these new AI interfaces.
- Google aims to keep ads clearly marked and distinct from organic search results.
- While ad pricing models remain familiar, the way ads are targeted is shifting to better suit conversational AI searches.
Google’s familiar search page is undergoing a major makeover for the age of artificial intelligence. The recent rollout of AI Mode in the U.S. means users can opt for a search experience that feels more like chatting with an AI assistant, a significant departure from the traditional “10 blue links.”
“We are certainly far beyond those days,” Dan Taylor, VP of global ads at Google, mentioned on a recent Digiday Podcast. He described these AI-driven experiences as a “transformational change,” according to Digiday.
This evolution in search naturally requires a new approach to how ads are integrated. Google started placing ads beneath its AI Overviews last year and has now begun experimenting with ads appearing directly within AI Mode.
The latter is a more profound shift. Since AI Mode can support an ongoing, evolving conversation, ads could potentially be updated and become part of this dialogue. Taylor noted that understanding the context of prior queries in a conversation will shape both the user and advertising experience.
When it comes to how ads will appear, Google emphasizes they will always be clearly identified and separate from non-ad content, though their exact visual presentation might change over time.
Interestingly, the pricing for these new AI-based ads will use the same models Google Ads has historically offered, such as cost-per-click or bidding based on acquisition cost.
However, the way advertisers target users is evolving. Traditional keyword-based planning is less effective for more conversational search styles. In response, Google is encouraging AI-powered approaches to help advertisers connect with relevant queries that go beyond pre-set keyword lists.
Google is also exploring advanced bidding strategies. One such method, referred to as Smart Bidding Exploration, uses AI to predictively bid, sometimes more aggressively, on queries that might be harder to secure but could lead to desired advertising returns.
