Google confirmed to Adweek it can “explore bringing ads” to its new AI Mode search experience. However, ad buyers are concerned that user behavior in the conversational interface could reduce ad effectiveness.
Google is trying to monetize its newest AI search experience, telling Adweek it plans to “explore bringing ads” into AI Mode — the conversational search feature launched in beta this week. It executes multiple searches concurrently to reply complex queries.
While ads aren’t yet appearing in AI Mode, Google’s approach can be informed by what it learns from ads already running in AI Overviews, the more straightforward AI-generated answers that sometimes appear at the highest of search results.
How ads work in AI Overviews
According to Google, Ads inside AI Overviews typically:
- Appear beneath AI-generated responses under a “Sponsored” heading.
- Draw from existing Search and Shopping campaigns.
- Match formats to user queries.
- Link to relevant services or products.
These ads are limited to U.S. mobile users. A Google spokesperson told Adweek that consumer response to those ads has been positive since their October debut.
Dig deeper: How to influence Google’s AI Overviews
Advertiser concerns
Industry experts express mixed feelings about ads in Google’s conversational AI environments:
Melissa Mackey, head of paid search at Compound Growth Marketing, finds AI Overview ads “compelling” because they will effectively answer user questions. However, she’s more skeptical about AI Mode promoting since it could feel more intrusive to users.
“Advertisers might want to get creative to capture attention and pull users away from the conversation in order to be effective,” Mackey said.
Navah Hopkins from PPC platform Optmyzr sees these potential challenges with AI Mode promoting:
- Lower click-through rates as a result of users staying throughout the conversation.
- Possible premium pricing resulting in higher costs per click.
- Potentially lower return on ad spend.
- “The goal of AI Mode is to reply the query as completely in the chat,” Hopkins noted, which could reduce users’ incentive to click on ads.
Why we care. Google’s introduction of ads into AI Mode could significantly impact how users interact with paid search. Unlike traditional search ads, AI Mode’s conversational format may reduce click-through rates as users receive comprehensive answers throughout the chat.
This shift may require advertisers to rethink their strategies, specializing in more engaging and artistic ad formats to capture user attention. Additionally, premium pricing and better costs per click could affect return on ad spend, making it crucial for marketers to observe performance closely as Google refines its AI-driven ad experiences.
Timing stays unclear. With limited details about auction dynamics or creative formats for AI Mode ads, Hopkins said predicting performance or adoption rates is difficult.
Meanwhile, some industry watchers, comparable to Glenn Gabe of G-Squared Interactive, said they haven’t seen ads in AI Overviews despite Google’s announcement, suggesting the rollout could also be gradual or highly targeted.
Dig deeper: How ChatGPT search reshapes the B2B buyer’s journey
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