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Google AI Mode is Google’s conversational search experience that can surface ads inside AI-generated answers. For ecommerce, eligibility leans on AI-powered campaign types (e.g., Performance Max, Search campaigns using either broad match or AI Max) and high-quality product data. Expect fewer “blue-link” clicks, tighter contextual matching to AI responses, and new creative requirements to stay visible.
You’ve probably seen the headlines. As of last week, Google has officially flipped the switch on “AI Mode” for users across Europe. Meaning its latest innovation in “AI Search” is now available in most markets across the globe. But the real story for advertisers is happening in the US, where the official experiment with ads inside AI Mode responses has now begun.
For Google, this isn’t just another feature. Powered by the latest AI models, this is a fundamental redesign of search. Meaning: The relationship between your ads and your audience is about to get a lot more complicated.
Keep reading for a deeper look under the hood of AI mode,
PLUS: A nifty little checklist for keeping your ads relevant during the AI takeover.👇
Table of Contents
Google’s AI Mode for ecommerce: A look under the hood.
It’s not just Search; it’s a conversation
Chances are you are one of billions of daily Google users, so Google adding AI to its search feature is probably not news to you.
AI Overviews was Google’s first step at answering complex queries that often have “no one right answer”.
Most crucial for retailers: Ads appearing above and below these AI Overviews (AIOs) are already live in the 200+ countries where AIOs are available.
AI Mode, however, is the next step. In essence, it’s AI Overviews on steroids!
It’s a conversation with an AI model that offers a fully interactive back-and-forth to offer diverse answers to a user’s “toughest questions”.
Your new audience: The algorithm itself
Currently, Google is aggressively testing ads within the AI’s conversational response in the US, with a wider international roll-out expected to happen within the next couple of months.
This is the single most critical change. Ads in these new experiences are matched based on two signals:
- the user’s query and
- the content of the AI response itself.
Let that sink in!
It's no longer enough to bid on a keyword. Your ad must be contextually relevant to the solution the AI has generated.
For example: If a user asks about cleaning a green pool, the AI might discuss algae and chlorine. The ads that appear are most likely for pool vacuums, because that’s a logical “next best step” in the context of the AI’s answer.
The AI is now the gatekeeper.
with European roll-out expected soon. | Source: Google
Flying blind into the future?
Naturally, advertiser’s will face a lot of hurdles in this new highly algorithmic environment:
Nope. Google made it very clear that AI is the future of paid discovery, and it’s here to stay.
Also no. Additionally, you must use AI-powered solutions like Broad Match or Performance Max to be eligible to appear within the responses.
Not yet. Google is still learning and actively thinking about what the future of reporting looks like for this experience.
The lack of reporting stings particularly, considering that Google finally made concessions within Performance Max. Google’s official statement is that they want to focus on getting the “product-market fit right” before introducing more features.
For now, you are flying completely blind.
Will AI Mode eat your clicks?
Google’s stated goal is to get consumers from “discovery to decision faster” by integrating ads directly into AI-powered responses. The claim is that this provides “new opportunities” for businesses to connect with users.
However, the entire model is built to answer complex questions without needing as many clicks to external websites.
So is you were optimizing your page feeds to receive organic traffic from Search queries thus far, you WILL be in for a bumpy ride going forward.
With AI Mode, Google wants to keep users glued to their platform. Diverting traffic away to external sources is an afterthought, at best.
AI Mode checklist for ecommerce advertisers
AI Overviews and AI Mode are powerful tools with a lot of potential. But to be prepared for what’s coming, it’s critical to follow strategic best practices:
- Embrace AI-powered targeting: You have no choice. To show up here, you need to use Broad Match in Search campaigns or fully automated solutions like Performance Max.
- Perfect your data hygiene: The AI relies on your data feeds. You must ensure your feeds have the latest product info, regularly review descriptions and pricing, and continuously verify the information you provide.
- Provide high-quality creatives: Supply a high number and diversity of quality images and videos to power the new ad formats.
- Segment and test: Don’t let Google run wild. Use dynamic product segmentation to feed Google the highly specific, relevant signals it needs to match your most profitable products to the context of its AI-generated responses.
Wanna dive deeper?
Regular listeners of our podcast, Growing Ecommerce, probably have a head start on this.
Our hosts Mike Ryan and Chris Scharmueller have been covering AI Mode and its implications extensively in their latest episode!
If you want to dive even deeper into the strategy, listen to the full episode now on YouTube:
