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Google tests Gemini-powered ads inside AI Mode and Search

Published
Score
12

Why it matters

Google is expanding ad placements into its AI-driven search experiences, testing new Gemini-powered formats including Conversational Discovery ads, Highlighted Answers, AI-powered Shopping ads, and a Business Agent for Leads. The new units are designed to integrate ads into conversational search journeys while maintaining clear sponsorship labels. Testing is underway in the U.S. on mobile and desktop, with broader rollout planned for later in 2026.

The scope of the rollout remains unclear. Google has not disclosed which advertisers are participating in the tests, the volume of impressions being generated, or performance metrics for the new formats. The company has also not specified whether these ad placements will eventually extend to Gemini chat itself or remain limited to AI Mode and standard Search surfaces.

Advertisers and in-house counsel should monitor how these formats affect campaign performance and visibility. The shift from keyword-adjacent placement to AI-curated answer integration could materially alter click-through rates and cost-per-acquisition. More broadly, the development raises unresolved questions about disclosure standards for AI-generated recommendations that include paid placements—an area where regulatory scrutiny is likely to intensify as these formats scale.

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