Google Introduces New Ad Formats In AI Mode via @sejournal, @brookeosmundson

Google announced two new ad formats for AI Mode during Google Marketing Live: Conversational Discovery ads and Highlighted Answers.

Both formats are powered by Gemini and designed to place ads more directly inside AI-generated responses and recommendation flows.

According to Google, the formats will include an independent AI explainer that synthesizes information about a product or service alongside the advertiser’s creative. Ads will continue to carry sponsored labels.

Read on to learn more about the new ad formats and when you can expect to start seeing them.

Conversational Discovery Ads Respond To Nuanced Prompts

Conversational Discovery ads are designed to respond to detailed or exploratory prompts inside AI Mode.

Google’s example showed someone asking how to make their home smell like “fancy spas or a rainy forest” using low-maintenance solutions.

Instead of relying primarily on keyword targeting, Gemini generates tailored creative and surfaces product features tied to the context of the conversation.

That creates a different type of Search interaction than advertisers are used to optimizing for today.

These ads appear built for longer, conversational prompts where users may refine what they want throughout the interaction rather than searching with a single high-intent query.

Google has been steadily moving in this direction through AI Overviews, AI Mode testing, and earlier sponsored placements appearing inside AI-generated experiences.

Highlighted Answers Insert Ads Into Recommendation Lists

The second format, Highlighted Answers, places ads directly inside recommendation lists generated by AI Mode.

Google used the example of someone researching language learning apps before a trip. Advertisers with highly relevant ads may appear directly within those recommendations.

This moves ads closer to the recommendation itself instead of alongside traditional Search results.

For advertisers, that could create visibility earlier in the research process before users narrow down to a final decision.

Google also said these experiences will remain clearly labeled as sponsored and include AI-generated explainers alongside the ad.

Why This Matters For Advertisers

These updates suggest Google is pushing ads deeper into conversational Search experiences.

For advertisers, that may increase the importance of creative quality, landing page content, structured product data, and first-party conversion signals.

Gemini is evaluating more than a simple keyword query. It’s interpreting the broader context of the conversation before surfacing ads.

It also creates new reporting and measurement questions.

Conversational searches are far less structured than traditional keyword searches. That may make it harder for advertisers to understand which prompts, themes, or interactions actually influenced performance over time.

Similar concerns have already started surfacing around AI Overviews and other AI-driven Search experiences.

Looking Ahead

Google made it clear that AI Mode is becoming a larger part of Google’s Search strategy.

Conversational Discovery ads and Highlighted Answers also provide a clearer picture of how Google plans to monetize those experiences.

Measurement and optimization may become far more complicated as searches become longer, more conversational, and less tied to traditional keyword behavior.

Both formats are expected to be tested within AI Mode, with no confirmation yet on when they are expected to start surfacing.

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