Google Debuts Gemini-Powered Ads in Search

Google announced new ad formats built on its Gemini AI model, rolling out in AI Mode and general Search. The company claims 75% of users make faster, more confident decisions using AI Mode in Search. Here's what's coming.

Two New Ad Formats in AI Mode

Conversational Discovery ads respond to natural language queries. If someone searches "low-maintenance ways to make my home smell amazing," Gemini builds a creative ad that highlights specific product features. The ad includes an independent AI explainer that synthesizes product info alongside the advertiser's content, clearly labeled as "Sponsored."

Highlighted Answers appear in AI Mode's list of recommendations. For queries like "best language apps for an upcoming trip," eligible ads can appear as a Highlighted Answer within the list.

AI-Powered Shopping Ads

For product searches (e.g., "espresso machine"), Gemini pulls relevant products and generates a custom explainer highlighting why each product fits the user's needs. This goes live in the coming months.

Business Agent for Leads

Instead of a static form, a Gemini-powered chat agent answers questions based on the advertiser's website. Google's example: a student researching universities can click "Chat" to get instant answers, converting into a qualified lead.

Direct Offers Expansion

The Direct Offers pilot, launched January 2026, gets three upgrades:

  • Promotion bundling: Brands upload discounts, giveaways, or coupons. Gemini constructs a deal (e.g., product bundle) for specific searches.
  • Native checkout: UCP merchants get native checkout integration for faster conversions.
  • Travel expansion: Partners like Booking and Expedia can surface offers within AI-assisted trip planning.

Developer Action Items

To use these formats, set up campaigns with:

  • AI Max for Search
  • AI Max for Shopping
  • Performance Max

Google will continue testing. No specific dates for general availability were provided.

Technical Details & Metrics

  • 75% of users report faster, more confident decisions with AI Mode.
  • Direct Offers pilot launched January 2026.
  • New formats use Gemini for real-time creative generation and explainer synthesis.
  • All ads remain labeled "Sponsored."

What This Means for Developers

If you manage ad campaigns, you need to adopt Performance Max and AI Max now. The shift to AI-generated ad content means your product data feeds must be structured and comprehensive. Expect more automated ad creation and less manual control over copy.

Code/Config Snippet Example

While no direct code is provided, a typical Performance Max campaign setup in Google Ads API might look like:

{
  "campaign": {
    "name": "AI Shopping Campaign",
    "advertising_channel_type": "PERFORMANCE_MAX",
    "bidding_strategy_type": "MAXIMIZE_CONVERSION_VALUE",
    "target_roas": 3.0,
    "asset_groups": [
      {
        "final_url": "https://example.com/product",
        "headlines": ["Buy Now", "Best Espresso Machines"],
        "descriptions": ["AI-powered recommendations"],
        "images": ["image1.jpg", "image2.png"]
      }
    ]
  }
}

This illustrates the shift from keyword-based to asset-based campaigns that AI models use.

Summary

Google's Gemini integration into Search ads marks a fundamental change: ads become conversational, AI-generated, and personalized. Developers must update campaign structures to AI Max and Performance Max. The Direct Offers expansion adds native checkout and travel deals, closing the loop from research to purchase.