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Ads in AI Overviews are already performing at “about the same rate” as traditional search ads, according to Google’s VP of global ads, Dan Taylor. https://bit.ly/4jDmDb7
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Google’s VP of Global Ads confirmed that ads are not coming to the Gemini AI app anytime soon. Instead, Google is prioritizing ad integration into AI Overviews and AI Mode in Search, where ads feel more natural and aligned with user intent. Advertisers hoped Gemini would become a new ad surface to offset Google’s high AI infrastructure costs, but Google is holding back. I think Google is cautious about monetizing Gemini because user trust and adoption are more important at this stage. Ads could disrupt the conversational flow and reduce engagement. Search vs. Chatbot Dynamics: Search: Ads are expected and often helpful (e.g., shopping queries). Chatbots: Users expect neutral, assistant-like responses. Ads could undermine credibility. Revenue Pressure: Google faces massive AI infrastructure costs, so monetization is inevitable. Ads in Gemini may come later, but only once Google figures out how to make them contextually relevant and non-disruptive. Competitive Landscape: Microsoft has already experimented with ads in Copilot (via Bing). Google’s restraint suggests it wants to avoid backlash and differentiate Gemini as a trust-first product. #AI #Gemini #Google Source :
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Google Search Hits $63B, Details AI Mode Ad TestsGoogle is testing ads in AI Mode as Search revenue grew 17% to $63 billion. AI Mode queries run 3x longer than traditional searches. The post Google Search Hits $63B, Details AI Mode Ad Tests appeared first on Search Engine Journal. https://lnkd.in/dFviigDw
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Why Google Gemini Has No Ads Yet: ‘Trust In Your Assistant’ Google DeepMind CEO Demis Hassabis said Google doesn’t have any current plans to introduce advertising into its Gemini AI assistant, citing unresolved questions about user trust. Speaking at the World Economic Forum in Davos, Hassabis said AI assistants represent a different product than search. He believes Gemini should be built for users first. “In the realm of assistants, if you think of the chatbot as an assistant that’s meant to be helpful and ideally in my mind, as they become more powerful, the kind of technology that works for you as the individual,” Hassabis said in an interview with Axios. “That’s what I’d like to see with these systems.” He said no one in the industry has figured out how advertising fits into that model. What Hassabis Said About OpenAI The comments came days after OpenAI said it plans to begin testing ads in ChatGPT in the coming weeks for logged-in adults in the U.S. on free and Go tiers. Hassabis said he was “a little bit surprised they’ve moved so early into that.” He acknowledged that advertising has funded much of the consumer internet and can be useful to users when done well. But he warned that poor execution in AI assistants could damage user relationships. “I think it can be done right, but it can also be done in a way that’s not good,” Hassabis said. “In the end, what we want to do is be the most useful we can be to our users.” Search Is Different Hassabis drew a line between AI assistants and search when discussing advertising. When asked whether his comments applied to Google Search, where the company already shows ads in AI Overviews, he said the two products work differently. “But there it’s a completely different use case because you’ve already just like how it’s always worked with search, you’ve already, you know, we know what your intent is basically, and so we can be helpful there,” Hassabis said. “That’s a very different construct.” Google began rolling out ads in AI Overviews in October 2024 and has continued expanding them since. The company claims AI Overviews generate ad revenue equal to traditional search results. Why This Matters This is the second time in two months that a Google executive has said Gemini ads aren’t currently planned. In December, Google Ads VP Dan Taylor disputed an Adweek report claiming the company had told advertisers to expect Gemini ads in 2026. Taylor called that report “inaccurate” and said Google has “no current plans” to monetize the Gemini app. Hassabis’s comments reinforce that position but go further by explaining the reasoning. His “technology that works for you” framing suggests Google sees a tension between advertising and the assistant relationship it wants Gemini to build. Looking Ahead Google is comfortable expanding ads where user intent is explicit, like search queries triggering AI Overviews. The company is holding back where intent is less defined and the relationship is more personal.
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Google just made $63 billion from Search while quietly reshaping how ads will work in AI Mode. Let that sink in for a second. They’re not slowing down traditional search. They’re building the next layer on top of it—and testing ads there right now. Here’s the part most marketers are missing: AI Mode queries run three times longer than traditional searches. That’s not a small difference. That’s a fundamentally different user behavior. Longer queries mean more context. More context means better intent signals. Better intent signals mean ads that feel less like interruptions and more like answers. Classic Google move—print money with the old model while quietly perfecting the new one. So what does this mean for your paid strategy? First, if you’re still writing ad copy for short-tail keywords, you’re already behind. AI Mode users aren’t typing “running shoes.” They’re asking full questions with nuance and specificity. Second, your landing pages better answer those questions completely. No fluff. No generic messaging. Just relevance at scale. Third, budget allocation is about to get interesting. Early AI Mode ad inventory will be experimental, but the teams testing now will have data advantages later. The shift isn’t coming. It’s already here. Google’s revenue proves traditional search still works, but their AI Mode tests show where they’re going. Are you still optimizing campaigns for how people searched last year, or are you preparing for how they’ll search tomorrow?
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Performance marketing in 2026 is no longer about winning the auction for a keyword. It is about winning the conversation within the AI response. With Google’s AI Mode now fully integrated into Search and Gemini powering the new Siri across 90% of the mobile market, the traditional “linear” funnel is officially dead. We are moving into the era of Agentic Performance Marketing. If you are still managing Google Ads like it is 2024, you are likely overpaying for clicks that have already lost their intent. Here is how I am shifting strategy across Search, Display, and YouTube to stay ahead: 1. From Keywords to Entities In AI-driven search, Google looks for topical depth rather than exact match strings. I am refocusing search campaigns on “Brand as Targeting.” If your brand and product data aren’t structured as clear entities for the LLM to cite, you won’t show up in the AI Overview, no matter how high your bid is. 2. YouTube as a Trust Engine, Not Just Reach With short-form vertical video dominating discovery, YouTube is the primary signal generator for AI models. I am treating YouTube assets as the “context layer.” The more high-quality, human-led video content we feed into the ecosystem, the better the AI understands our value proposition when it generates an answer for a user. 3. Performance Max Asset Strategy 2.0 PMax has evolved from a black box into an asset-hungry machine. The biggest lever we have now is “Creative Pattern Analytics.” I am moving away from generic banners and toward “Social-First” assets – UGC and raw, unedited content that provides the authenticity AI cannot replicate. 4. Conversational Bidding The new “High Value Mode” in PMax allows us to capture users in AI Mode who aren’t even using traditional search terms yet. We are bidding on the probability of a conversion within a continuous dialogue, not just a single session. The role of the performance marketer has shifted. We are no longer just “media buyers.” We are now “Data and Creative Architects” who provide the guardrails for AI to execute. How are you adjusting your bid strategies for the AI Mode era? #Googleads #PerformanceMarketing #PPC #mediabuyer #Google #AIOverview #Gemini #LLM
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If you’ve missed it: Google has been testing ads inside AI Mode, and what we’re seeing so far has a bigger implication than just ads in a “new placement.” We are seeing keyword intent erode. It looks like Google is matching ads to the 𝘱𝘳𝘰𝘣𝘭𝘦𝘮 𝘴𝘱𝘢𝘤𝘦 (category/task) more than the 𝘲𝘶𝘦𝘳𝘺 (specific intent). Earlier this week, we were able to trigger a meaningful amount of these ads, although we will caveat that it looks like they’ve gone dark again. An indication is that Google is doing more testing and getting serious about rolling ads out in these placements. Since these ads are at the bottom of the fold, it’s probably safe to say at this point that most clicks are coming from either highly motivated prospects (or nosy marketers). As the latter, we clicked into the ads we saw and noticed something worrisome: matching is getting 𝘷𝘦𝘳𝘺 broad. Looking at UTMs across a handful of queries/keywords, the matching inside AI Mode feels like a step beyond broad targeting. Example: a search like [Jira vs Monday] appears to match the broad keyword “taskboard” (based on what we can infer from the params). Almost all the instances we were able to trigger were similarly broad. If that holds as ads roll out further, it’s a signal that AI Mode is treating comparison queries as category research. 𝐓𝐡𝐞 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧: if the unit of intent is shifting from “query → keyword” to “task → solution set,” our usual guardrails (match types, themes, negatives) may matter even more, in campaign types where these controls are already limited (PMax, AI Max, and Broad), which could materially change campaign performance from standard SERP traffic as we start to see this ad placement ramp.
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New from me. I spoke with Google VP of global ads Dan Taylor about why ads make sense on AI Mode and AI Overviews, but not in its Gemini app. Well, for now, anyway. I took a look at why the stakes are high for AI companies in making the first move to introduce ads into their free AI assistants. Dan also shared what Google has learned so far about the nuances of serving ads in deeper back-and-forth conversations. Read more at Business Insider https://lnkd.in/eK8zEm3g #ads #gemini #ai
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Businesses and publishers will need to reexamine their strategies and adapt to the ways AI is changing search, much as they did for the rise of Google or the growth in mobile browsing. “Tracking engagement metrics is key,” Cutler says. “Once people come to the site, how long do they spend? What do they do? How are they interacting with your content?” Check it 👉 https://buff.ly/sO6yCFk!
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OpenAI just priced its new ads at $60 per thousand views. That’s more than Google Search. They’re not just entering the ad market—they’re redefining the value of a conversation. This is a fundamental shift. For years, digital ads have been about reach and clicks. OpenAI is betting on something else: intent and trust. Here’s what’s happening: 🔹 Ads are coming to ChatGPT’s free and $8/month Go tier, starting in the U.S. 🔹 They’ll be clearly labeled and appear at the bottom of relevant responses. 🔹 The model is CPM (cost per thousand impressions), not the performance-based CPC common elsewhere. Why does this matter? Because 800 million weekly users are asking questions with high intent. A query like “best running shoes for flat feet” isn’t just a search—it’s a direct signal of a purchase decision. Analysts see this as a necessary move. The compute costs for AI are massive. This creates a second revenue stream. Some estimates project $20 billion in ad revenue over five years if execution is strong. The bigger story is where that money comes from. The U.S. open internet ad market is roughly $50 billion. To succeed, OpenAI will have to pull budget from the established giants: Google, Meta, and Amazon. It’s not just about budget shift, but behavior shift. Early data suggests AI-generated answers can reduce website click-through rates by 20-40%. If users get their answer directly in the chat, the traditional ad-supported web faces a new challenge. This isn’t just another ad platform. It’s a bet that a moment of genuine, high-intent conversation is more valuable than a thousand passive impressions. What do you think? Will brands pay a premium for this new kind of access to consumer intent? #DigitalAdvertising #AI #OpenAI #MarketingStrategy 𝐒𝐨𝐮𝐫𝐜𝐞: https://lnkd.in/dV3RwtpJ
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𝗛𝗼𝘄 𝘁𝗼 𝘀𝗵𝗼𝘄 𝘆𝗼𝘂𝗿 𝗚𝗼𝗼𝗴𝗹𝗲 𝗮𝗱𝘀 𝗶𝗻 𝗔𝗜 𝗠𝗼𝗱𝗲 Google has started showing ads inside AI Mode, you might have seen some posts on the same with screenshots. This is not a beta. This is not a side experiment. This is where search is going. 𝗙𝗶𝗿𝘀𝘁, 𝗮 𝗾𝘂𝗶𝗰𝗸 𝗰𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻. AI Mode and AI Overviews are not the same thing. AI Overviews are one-shot summaries.Exploratory queries. Google compresses information and may show ads above, within, or below. 𝗔𝗜 𝗠𝗼𝗱𝗲 𝗶𝘀 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁. 𝗜𝘁’𝘀 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻𝗮𝗹. 𝗙𝗼𝗹𝗹𝗼𝘄-𝘂𝗽 𝗱𝗿𝗶𝘃𝗲𝗻. 𝗚𝗼𝗼𝗴𝗹𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲 𝗷𝗼𝘂𝗿𝗻𝗲𝘆, 𝗻𝗼𝘁 𝗮 𝘀𝗶𝗻𝗴𝗹𝗲 𝗾𝘂𝗲𝗿𝘆. That distinction matters a lot. Now the part I first jumped to: campaigns and match types. To be eligible at all, nothing fancy is required. 𝗦𝗲𝗮𝗿𝗰𝗵 𝘄𝗶𝘁𝗵 𝗕𝗿𝗼𝗮𝗱 𝗠𝗮𝘁𝗰𝗵. (For your search campaign) 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗠𝗮𝘅. (For shopping and search) 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗦𝗵𝗼𝗽𝗽𝗶𝗻𝗴. (For shopping campaign) 𝗔𝗜 𝗠𝗮𝘅 𝗳𝗼𝗿 𝗦𝗲𝗮𝗿𝗰𝗵. (For search campaign) That’s it. You don’t opt in. You don’t choose placement. Google decides if and where your ad shows. 𝗕𝘂𝘁 𝗵𝗼𝘄 𝗱𝗼𝗲𝘀 𝗚𝗼𝗼𝗴𝗹𝗲 𝗱𝗲𝗰𝗶𝗱𝗲𝘀? That questions now most important and as per my knowledge in this recent topics after seeing some videos and reading some articles that the single keyword weight should not be that much important – Best google ads agency should be the keywords but the user might be looking for best google ads agency for dentist or roofing (industry wise) or best google ads agency in New York or LA (location wise) – if AI suggest those options that narrows down user’s query and the ad pops up – credit goes to first keyword as well as the follow up keyword – having that whole funnel is becoming more important now. If my keywords is X then now I will be thinking how X is connected to different keywords and what would be the next ideal question or exploration user might have and those keywords also needed to be added in ad groups according to its close query relevant. What has changed is not match types. It’s how intent is evaluated. Search used to be: keyword to auction to click AI Mode is: intent to context to reasoning to ad as the next step A single keyword is no longer the unit of value. The journey is. One thing that’s easy to get wrong: Going all-in on Broad just to “be in AI Mode”. That’s how budgets get burned fast. This came up clearly in a recent video by Thomas Eccel (link in comments). 𝗠𝘆 𝘁𝗮𝗸𝗲 AI Mode doesn’t change fundamentals. Exact wins you today. Broad prepares you for tomorrow. While doing the keyword research – think of covering the entire funnel with the same intent keywords. #googleads #aimode
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