Google to Explore Ads in AI Mode Amid Concerns Over Performance Compared to AI Overviews

March 11, 2025 at 4:30:46 AM

TL;DR Google plans to explore integrating ads into its new AI search feature, AI Mode, which offers multi-step responses to user queries. While ads are not yet available, Google will draw from AI Overviews to shape future ad strategies. Advertisers are concerned that ads in AI Mode may be intrusive and yield lower click-through rates. Additionally, AI Mode could be classified as premium inventory, potentially raising costs for advertisers.

Google to Explore Ads in AI Mode Amid Concerns Over Performance Compared to AI Overviews

Google plans to integrate ads into its new AI search feature, AI Mode, which allows for multiple searches and provides detailed responses to complex queries. Although ads are not currently available in AI Mode, Google aims to utilize insights from AI Overviews, where ads are already incorporated, to shape its advertising strategy in AI Mode.

Ads in AI Overviews, which appear beneath AI-generated responses, are sourced from existing Search and Shopping campaigns and are designed to align with user queries. These ads have shown positive consumer feedback since their introduction in October, with reports of higher click-through rates compared to traditional web listings.

However, advertisers express concerns that the effectiveness of ads in AI Overviews may not translate to AI Mode. Experts like Melissa Mackey and Navah Hopkins highlight that ads in AI Mode could be perceived as intrusive, making it challenging to capture user attention. They predict that click-through rates may be lower due to the conversational nature of AI Mode, which encourages users to engage in follow-up questions rather than click on ads.

Additionally, AI-driven search experiences like AI Mode may be classified as premium inventory, potentially leading to higher costs per click. This combination of lower click-through rates and increased costs could result in diminished returns on ad spend. Without clear insights into auction dynamics or ad formats, predicting the performance and adoption of ads in AI Mode remains difficult.

Have more questions on this topic? Ask our AI assistant for in-depth insights.

The Only Digital Marketing Feed You'll Ever Need.

Stay informed your way. Tailored updates when and how you want them. 100% Free.

10,000+ Users

500+ Sources

1000+ Tools

Or

Related Posts

New in GTM Event Parameters Added for Google Ads Conversion Tracking

New in GTM Event Parameters Added for Google Ads Conversion Tracking

Tired of spending too much time creating audits for your clients?

Tired of spending too much time creating audits for your clients?

Featured
Google Ads launches text guidelines for AI-generated ad assets

Google Ads launches text guidelines for AI-generated ad assets

Ginny Marvin
Ginny Marvin

Official Source

Official Source

Ginny Marvin is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Ads AI Max for Search Campaigns Now Available Globally with New Features

Google Ads AI Max for Search Campaigns Now Available Globally with New Features

Google
Google

Official Source

Official Source

Google is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Ads Introduces New AI-Powered Asset Studio Trending ️‍πŸ”₯

Google Ads Introduces New AI-Powered Asset Studio

Google
Google

Official Source

Official Source

Google is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Ads improves Summary View with customizable conversion reporting

Google Ads improves Summary View with customizable conversion reporting

Thomas Eccel
Thomas Eccel

Top Creator

Top Google Ads Creator

Thomas Eccel is a Top Google Ads Creator. Part of Swipe Insight Select, a curated list of top creators.

Top Google Ads Creator
Innovative Retailers Use Google Ads to Win and Retain Customers

Innovative Retailers Use Google Ads to Win and Retain Customers

Google
Google

Official Source

Official Source

Google is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Ads Launches Web to App Connect for YouTube and Unified Reporting

Google Ads Launches Web to App Connect for YouTube and Unified Reporting

Google
Google

Official Source

Official Source

Google is a Official Source. The source has been verified by Swipe Insight team.

Official Source

Related Tools

Markifact logo

Markifact

Verified Tool

Verified Tool

Markifact is a Verified Tool. Want to get this badge? Contact us.

Verified Tool

Marketing Workflows Powered by AI

Featured
Marketing Auditor logo

Marketing Auditor

Verified Tool

Verified Tool

Marketing Auditor is a Verified Tool. Want to get this badge? Contact us.

Verified Tool

Automated audits for Google Ads and Analytics.

Get Featured Here

Showcase your tool in this list.

Contact Us
Skai logo

Skai

AI-powered omnichannel marketing and optimization

Ad Management
Smartly.io logo

Smartly.io

Automate and optimize your ad campaigns effortlessly

Ad Management
Grasp logo

Grasp

Automated QA for flawless media buying campaigns

Ad Management
Sembot logo

Sembot

Maximize ROI with AI-driven marketing automation

Ad Management
Zocket logo

Zocket

AI-powered marketing for optimized ad campaigns

Ad Creative
GoDataFeed logo

GoDataFeed

Optimize and manage product feeds across channels

Feed Management
Feedonomics logo

Feedonomics

Optimize and sync product data for more sales

Feed Management
Lunio logo

Lunio

Protect your ad spend from invalid traffic

Ad Management

Get Featured Here

Showcase your tool in this list.

Contact Us