Google Experiments with Ads in Conversational AI Search Mode: Opportunity or Overreach?

Google is gearing up to transform its search advertising model by integrating ads into its new AI Mode, a conversational search experience powered by generative AI. While the tech giant confirmed to Adweek that it is “exploring bringing ads” to this experience, industry experts remain divided on how this move might impact engagement and performance.

What is AI Mode?

Launched in beta this week, Google’s AI Mode is designed to handle complex, multi-step queries in a conversational format. It pulls information from across the web and answers users in a chat-style interface, similar to ChatGPT or Perplexity AI. As users become more accustomed to these fluid, natural-language interactions, Google is preparing to test monetization through contextual ads.

Current Ad Strategy in AI Overviews

Google’s approach in AI Mode is expected to draw heavily from its ongoing experiments with AI Overviews, which are concise, AI-generated summaries that appear atop traditional search results. In AI Overviews:

• Ads appear below the AI-generated response with a “Sponsored” label.
• They are pulled from existing Search and Shopping campaigns.
• Ad formats align with query intent and link to relevant products or services.
• Currently limited to U.S. mobile users.

A Google spokesperson told Adweek that the initial feedback from AI Overview ads, introduced in October 2023, has been “overwhelmingly positive.”

Advertiser Concerns & Market Implications

Despite the potential for innovation, many advertisers are cautious. The conversational interface of AI Mode may change how users engage with ads—and not necessarily in a good way.

• Lower Click-Through Rates: Users might get all the answers they need directly from the AI, reducing the likelihood of clicking ads.
• Higher CPCs: If ad placements are limited and competition grows, advertisers could face a rise in cost-per-click.
• Disruption to Performance Metrics: Traditional KPIs like impressions, clicks, and conversion rates may not translate well in a conversational flow.

“Advertisers will need to rethink creative strategies to interrupt the conversation and earn attention without being disruptive,” said Melissa Mackey, Head of Paid Search at Compound Growth Marketing.

“AI Mode aims to deliver complete answers within the chat, so there’s less incentive for users to leave the experience. This poses a challenge for ROI-focused marketers,” added Navah Hopkins, from PPC platform Optmyzr.

Why This Matters

As search evolves into a more intuitive, conversation-driven experience, brands must adapt their ad strategies accordingly. Google’s move is a clear sign that the future of search advertising is headed toward generative AI ecosystems, where personalization, creativity, and contextual relevance will define ad success.

#GoogleAI #SearchAds #ConversationalAI #AIAdvertising #DigitalMarketingTrends #AdTech #GenerativeAI #PPC #MarketingInnovation #AIinSearch #SearchEngineMarketing #MarketingStrategy2025 #thetalkingtech