Google reinvents (also) advertising: this is how the ads will be integrated into the search engine’s AI

We already know what advertising will look like in the new context of AI Mode: innovations that will forever change ads on Google.

May 22, 2025

Last Tuesday, Google announced a significant (r)evolution in its search engine by more deeply integrating artificial intelligence (AI), not only to provide more comprehensive answers to users’ queries but also to transform the advertising ecosystem. Through its AI Mode, now available in the United States, the company proposes a radical change in the way people interact with online queries. It is a twist to the already quite difficult to fit AI Overviews.

Google becomes a site you do not need to leave to answer a search. It is Google within Google, using Google to respond to Google users.

And it is a model that raises questions about its impact on the digital ecosystem. Many questions. At all levels. Including advertising.

Advertising, the missing piece in Google’s AI responses

As we mentioned yesterday, the AI Mode did not natively integrate ads in the generated responses, but we knew Google could not afford to eliminate the ads: their business model depends on them. A day later, Google has addressed our doubts.

In part.

The most novel aspect of the announcement is the expansion of contextual ads within these new search experiences. Ads were already appearing in AI Overviews on mobile devices, but now Google will also display them on desktops in the U.S., and they are expected to reach other countries and devices later in the year, for queries in English.

In the case of AI Mode, ads will begin to appear within the generated responses, when relevant. Google believes it can be especially valuable for brands that want to be present from the exploration and discovery stage, influencing decisions from the start.

As the company has explained: “Ask any question and get an AI-driven answer, with the possibility of delving deeper through follow-up questions and useful links to the web. Where appropriate, ads may appear subsequently, integrated within AI Mode responses.

For example, someone might use AI Mode to search for ‘how to create a website for a small business with limited resources’. They would receive a comprehensive response with a step-by-step guide, tips, and tricks on how to choose a product, connect with their audience, and how to test and launch it. In some cases, a website creator might be a good next step, so we might show them a useful ad to help them get started. From there, they can ask questions to explore potential business ideas, the type of content they should develop, or even get to know their target audience.”

The new ad experience for AI Overviews & testing in AI Mode announced today at #GoogleMarketingLive @GoogleAds pic.twitter.com/mduAxB6snP

— Simon Poulton 🐙 (@SPoulton) May 21, 2025

That is to say, the idea is that these ads appear in an integrated fashion at key moments in the buyer’s journey, helping to connect with relevant products or services.

Changes in campaign creation

Brands already using Performance Max, Shopping, or Search with broad match campaigns, including AI Max for Search, will be automatically eligible to appear in these new formats. No additional setup will be required, although Google recommends exploring their “AI Essentials” guide to adapt strategies to the new environment.

This transformation implies that advertisers must adapt to a landscape where contextual relevance and the ability to accompany the user in their decision-making process will be key. It is no longer just about being present but about being at the right moment with the appropriate message.

And now, let us speculate a bit on possible outcomes of this change in model 😉

Faced with all these changes, it is likely that in the medium term, advertising on Google will no longer be based on identifying valuable keywords, but on understanding the complete context of searches. With AI Mode, users formulate longer, open, and complex queries, often directly phrased like paragraphs where they express multiple doubts in a conversational mode (“I am going on vacation to Paris in June, I need you to help me choose a hotel, show me plans for activities and visits, and advise me on what kind of clothing I should bring”) — which implies that ads will need to align with more abstract or multi-stage intentions of the buyer’s journey. It is a challenge that Google Ads agencies must meet with great flexibility.

Additionally, the new advertising formats will be integrated within the AI-generated responses, requiring a more native, helpful, and user-aligned approach. The classic text ad may become irrelevant if it is not perfectly aligned with the conversation the user is having with Google. The challenge is not just to be present but to provide real value at the precise moment of intention. Creativity becomes more strategic, focused on solving needs, not just capturing clicks.

In any case, with the displacement of traditional links and the fall of the organic CTR, classic ads may also lose prominence. Perhaps in the future, Google could prioritize agent-like responses or results with complete tasks, such as reservations or direct purchases, where the strategy must also change. The amazing Project Mariner and its vision of an agent that does everything for the user is challenging to fit in this context.