Google has announced plans to test and experiment with integrating ads into its new AI Mode.
14 billion Google searches per day
Let’s assume 40% of responses show an AI Overview (5.6 billion)
Let’s also assume AI Overviews are wrong 5% of the time.
That’s 280 million incorrect Google responses per day ?
— Lily Ray ? (@lilyraynyc) March 10, 2025
This move follows learnings from implementing ads in AI Overviews, simpler AI-generated responses that sometimes appear atop search result pages. According to a statement given to Adweek, Google will “explore bringing ads into” AI Mode, which was rolled out in beta this past Wednesday.
AI Mode is capable of conducting multiple searches simultaneously to deliver in-depth, multi-step responses to complex user queries.
In my latest blog post, I explained how AI Overview prevalence continues to surge as featured snippet prevalence drops. Well, it's continuing… Ziptie data shows AIO prevalence is nearing 20%.
That's overall, but certain query types are yielding much higher than that,… pic.twitter.com/73THt92U5i
— Glenn Gabe (@glenngabe) March 8, 2025
While ads are not yet available in AI Mode, Google intends to leverage insights from its ads products in AI Overviews to shape its future advertising approach within this new feature. This news has spurred discussions within the search community, drawing mixed reactions from users and experts alike.
? Thinking about publishing 200 AI-generated service area pages? ?
Hold up.
One of our clients tried it, expecting a traffic boost. Spoiler alert: it flopped.
Why? Google didn't penalize them—it just didn't index them. The pages lacked unique, valuable content, and Google… pic.twitter.com/DMH9s0x4Q8
— Joy Hawkins (@JoyanneHawkins) March 10, 2025
Some see the potential for more relevant advertising, while others express concerns over the integration of ads into more sophisticated AI search functionalities. As Google continues to innovate with AI technology, the company remains committed to refining its approach to ensure that ads do not interfere with the user experience. The search giant’s experimentation with AI Mode reflects its broader objectives to enhance search capabilities while monetizing through ads thoughtfully.
Testing AI Mode ad placements
However, some ad buyers are concerned about the performance of ads in AI Mode.
More evidence how Google AI overviews decrease organic CTRs ?
In Q4 for "Desktop Informational Queries," while AI Overviews increased 8.8 percentage points (pp), organic CTRs dropped 7.3 pp
This, according to a new CTR study from @awebranking pic.twitter.com/srx1zKfpup
— Cyrus (@CyrusShepard) March 10, 2025
Melissa Mackey, head of paid search at Compound Growth Marketing, finds the current ads “compelling” but is skeptical about their effectiveness in AI Mode.
“Advertisers will need to get creative to capture attention and pull users away from the conversation in order to be effective,” Mackey said. Navah Hopkins, an executive at pay-per-click platform Optmyzr, also foresees challenges in this new advertising environment. Given that AI Mode aims to keep users engaged in a conversation with follow-up questions and topic exploration, she predicts that click-through rates could be lower than with traditional search ads.
Moreover, AI-driven search experiences like AI Mode might be classified as premium inventory, potentially leading to higher cost-per-click rates, according to Hopkins. For now, without detailed insights into auction dynamics or creative ad formats, it is difficult to predict the performance and adoption rates of potential ads in AI Mode. Advertisers and marketers will closely watch Google’s next steps as they adapt to this evolving digital landscape.
For those following updates in the search community and digital advertising, further details are expected as testing progresses and more information becomes available.
Photo by; Anthony Rosset on Unsplash
