Google has announced a new suite of Gemini-powered advertising formats for search, signaling a major shift toward AI-generated, conversational ads designed to integrate directly into its evolving AI Mode experience.
In a blog post published on May 20, the tech giant said it is “using Gemini models to experiment with new ad experiences designed to provide engaging, helpful answers that connect people with businesses.”
The company said the move comes as “the Search experience becomes smarter and more conversational,” with users increasingly relying on AI-assisted responses while researching products and services.
“People come to Google to research complex topics and discover products and services that fit their needs,” the company said.
Google revealed that “75% of people report making faster, more confident decisions using AI Mode in Search,” adding that it is now “testing two new types of ads, built with Gemini, that offer relevant product details along with helpful guidance.”
A key feature of the new formats is the use of “an independent AI explainer as part of the ad.”
According to Google, “our Gemini model evaluates and synthesizes information about a product or service, and displays that context alongside the advertiser’s creative.”
The company added: “This coherent, independent response ensures transparency and builds trust,” while emphasizing that the ads “will also continue to be clearly labeled as ‘Sponsored.’”
Among the newly announced formats are “Conversational Discovery ads,” which Google described as ads that “answer a person’s specific question.”
The company gave an example of a user searching: “I am trying to make my house smell like those fancy spas or a rainy forest. What are some low-maintenance ways to make my home smell amazing?”
Google said it would “use the Gemini model to build creative tailored to that search, highlighting specific relevant features.”
Another new feature, called “Highlighted Answers,” will allow “highly relevant, high-quality ads” to appear directly within AI-generated recommendation lists.
Google said this format would appear “when AI Mode provides a list of recommendations — like the best language apps for an upcoming trip.”
Beyond AI Mode, the company also announced plans to roll out “next-gen AI ads to Search” more broadly over the coming months.
One of the additions is “AI-powered Shopping ads,” aimed at helping consumers navigate high-value purchases such as electronics and appliances.
“Buying something big — like a new fridge or a TV — can be overwhelming,” Google said.
The company explained that if a user searches for an espresso machine, “Gemini will pull up your most relevant products and instantly write a custom explainer highlighting why your product may be the right choice for them.”
Google also introduced “Business Agent for Leads,” a Gemini-powered conversational assistant embedded directly into advertisements.
Instead of relying on “a static form,” the feature allows users to “click ‘Chat’ to get instant answers based on your website, turning a practical interaction into a valuable lead.”
The company said the feature could be useful for sectors such as education, where “a student researching universities” may want instant information before committing.
Google further announced an expansion of its “Direct Offers” pilot program, first launched in January 2026.
The company said brands including Chewy, Gap and L’Oréal have already used the feature to “surface highly relevant deals as shoppers explore their options.”
New additions to the pilot include “promotion bundling,” where “brands can upload a variety of promotions in Google Ads, including discounts, giveaways and local coupons.”
Google said advertisers would soon be able to “supply their eligible products and guardrails and use AI Brief to reach the right audiences.”
“We use Gemini to construct a deal — like a highly relevant product bundle — to present the most compelling offer for that specific search,” the company said.
Another feature, “native checkout,” has now been integrated for “Universal Commerce Protocol (UCP) merchants,” allowing shoppers “a faster way to secure promotions.”
Google said the update would help merchants “seamlessly turn high-intent research into completed sales.”
The company also announced a travel-sector expansion, saying partners such as Booking.com and Expedia will soon be able to “surface special offers directly within a person’s AI-assisted trip planning.”
“With these updates, Direct Offers will now naturally surface in the AI Mode response as shoppers explore options, making deals more instantly discoverable,” Google said.
The company encouraged advertisers to “build a strong foundation with AI Max for Search, AI Max for Shopping campaigns and Performance Max.”
Google concluded by saying it will “continue to test these formats to ensure they deliver a positive experience for consumers while building a future where your marketing is more actionable than ever.”
