In its latest blog update, Google revealed that it is using Gemini models to experiment with new advertising experiences that deliver engaging, helpful responses while connecting users with businesses. The search giant stated that 75% of users report making faster and more confident decisions when using AI Mode in Search.
As a result, Google has begun testing two new AI-powered ad formats, curated with Gemini’s help, that offer users relevant product information alongside contextual guidance.
To help users evaluate their choices more effectively, both formats will include an independent AI-generated explainer within the advertisement. The Gemini model evaluates and synthesizes information about a product or service, then displays that context alongside the advertiser’s creative. Google said the separate AI-generated response is intended to improve transparency and build trust. These advertisements will continue to be clearly labeled as “Sponsored”.
The two new ad formats include:
Conversational Discovery Ads
These ads are designed to answer a user’s specific query. Powered by Gemini, the ads are tailored to a user’s searches and browsing intent, highlighting relevant product features and personalized recommendations.
Google said that when users are researching products or services — such as searching for the best language-learning apps before an upcoming trip — AI Mode may generate curated recommendation lists. Eligible, high-quality advertisements could then appear as highlighted responses within those recommendations.
AI-Powered Shopping Ads
Google is also introducing AI-powered shopping ads that provide summarised product information, along with a custom AI-generated explanation of why a product may suit a particular user’s needs.
The company is also rolling out a new “Business Agent for Leads” feature that places a smart brand agent directly within advertisements to facilitate more practical interactions and generate higher-quality leads.
Expansion of Direct Offers Pilot
Google has also expanded its Direct Offers pilot program to support more promotional formats and make offers easier for users to redeem. Several new features are expected to roll out soon.
Promotion Bundling
Brands will soon be able to upload multiple promotional formats, including discounts, giveaways, and local coupons. Advertisers will be able to define eligible products and campaign guardrails, while AI-powered briefs will help target the right audiences more effectively. Google said Gemini will be used to assemble and present the most compelling deals to users.
Native Checkout
Google will introduce native checkout functionality for Universal Commerce Protocol (UCP) merchants. This is expected to give shoppers a faster way to claim promotions while helping merchants convert high-intent browsing into completed purchases more seamlessly.
Travel Expansion
Travel partners such as Booking.com and Expedia will soon be able to surface special offers directly within AI-assisted trip-planning experiences.
The latest updates will allow Direct Offers to integrate more naturally into AI Mode responses, helping shoppers discover relevant deals more quickly while browsing and comparing products.
To maximize the potential of these AI-driven advertising experiences, brands are encouraged to strengthen their strategy with AI Max for Search, AI Max for Shopping, and Performance Max. Google said it will continue refining and testing these formats to create a smoother user experience while enabling more dynamic and actionable marketing opportunities.
