The digital advertising landscape is undergoing its most significant transformation since the early days of the internet. Just as the internet revolutionized how we live, work and communicate in the early 2000s, AI is emerging as the next transformative technology affecting virtually every industry. And if you're running digital ads, this shift isn't just incremental — it's fundamental, and it's happening right now.
How Google Is Expanding Ads into AI Search
Experiences
In May 2025, Google announced a significant shift with the introduction of ads within AI
Overviews.
Here's how it works: Search and shopping ads from existing Search, Shopping and Performance Max campaigns are automatically able to win the auction ad space if they address both the query and the information in the AI Overview.
Real-world example: A user searches for "should I buy a new car or a used car for reliability and value." Google's AI Overview presents pros and cons of new versus used vehicles. Within that overview, relevant ads appear for certified pre-owned vehicles, helping the user take the next logical step in their journey.
Why AI Overview Ads Matter for Your Business
This new approach offers three major advantages:
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Shorten the Path from Discovery to Decision – Consumers find information faster and more easily through AI. Ads in AI Overviews allow you to reach them early in their discovery journey.
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Position Yourself as the Clear Next Step – Your ad can match against both the user's query and the AI Overview context, making your business the obvious choice.
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Connect in Untapped Moments – AI Overviews decode complex user needs and emerging questions, enabling ads to meet customers in moments of high relevance that traditional search might miss.
Frequently Asked Questions About AI Overview Ads
Why don't all AI Overviews show ads?
Ads in AI Overviews are matched based on user query and the content generated in the overview. Google is more likely to show ads when queries have purchase intent or commercial relevance.
How does Google determine when ads show above, below or within the AI Overview?
Google uses existing signals and systems to make these placement decisions.
Can you target ads only to serve within AI Overviews?
No, you can't directly target ad placements in AI Overviews.
Can you opt out of serving ads in AI Overviews?
No, you can't opt out of serving ads in AI Overviews.
How can I tell if it's an organic listing or an ad?
Ads will be marked with a "Sponsored" label for transparency.
Can I get segmented reporting when my ads serve within AI Overviews?
Currently, no. However, ads in AI Overviews are in the early stages. Google is still learning and actively testing what the future of reporting looks like for this experience. The expectation is that someday we'll have segmented reporting.
Current Limitations with AI Overview Ads
While this technology offers exciting possibilities, there are some constraints to understand:
Vertical Restrictions – Google currently does not show ads in AI Overviews for sensitive verticals including adult content, alcohol, gambling, finance, healthcare (including senior living) and politics.
Geographic Availability – Ads in AI Overviews are currently available in the United States, Australia, Canada, India, Indonesia, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, Philippines and Singapore.
Traditional Ads Aren't Disappearing — They're Evolving
It's crucial to understand that traditional search ads are transforming, not vanishing. The fundamental principle remains the same: connecting with people when they're seeking solutions. What's changing are the methods.
We're shifting from keyword optimization to understanding user intent, and from simple ad placements to conversational context. Like Google search itself, ads are transforming with AI — not going away.
4 Strategic Ad Placements in AI-Driven Results
Understanding where your ads can appear in AI-driven search results is essential for strategic planning:
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Inside AI-Generated Answers (Embedded Placements)
Sponsored recommendations showing within summaries as "Options" or "Next Steps" for products or services. -
Adjacent to AI-Generated Answers (Support Placements)
Ads shown above, below or beside AI summaries—the closest to traditional search ads, shopping ads and location ads. -
Conversational Follow-Up Moments
Triggered after follow-up questions when user intent signals increasing interest in a purchase or service offering. Perfect for local or service ads when someone asks "What's the best option near me?" -
Action-Oriented AI Options (Bottom-of-Funnel)
Ads attached to calls-to-action like "Compare," "Book," "Schedule" or "Get Pricing"—appearing at logical next steps for user intent.
How to Prepare Your Search Strategy for AI Integration
Success in this new landscape requires strategic adjustments to your approach.
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Adjust Your Targeting Mindset
Shift from keyword targeting to intent and context targeting. Focus on:
- Problem definition – What is the user trying to solve?
- User constraints – Budget, location
- Stage of user's journey – Where are they in the decision-making process?
- Prior conversion context – New or existing customer?
- Predicted next action – General search > visited site > abandoned cart > purchase
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Think Differently About Ad Copy
AI search results are more likely to serve ads that contextually feel informational, not promotional.
- What to Do: Use declarative, helpful language with a problem-solving approach like "Ideal for…", "Designed to help you…" and "Save time by…"
- What NOT to Do: Don't use traditional ad copy that's all fluff like "We're the best…", "No better option for…" or "Best prices on…"
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Utilize Various Campaign Types
Implement diverse ad types to reach users at all stages and placements, including Performance Max, Search, Shopping and Demand Generation campaigns.
What's Next: Ads in ChatGPT
Change in this space is constant. In January, OpenAI announced that ChatGPT will start testing ads in free and Go tiers. What they've told us so far:
- Responses in ChatGPT will not be influenced by ads
- Ads will be separate and clearly labeled
- Your conversations will remain private from advertisers
- Plus, Pro, Business and Enterprise tiers will not have ads
This signals that AI-powered advertising is expanding beyond Google into other major platforms, making it even more critical for businesses to develop AI-native advertising strategies.
Getting Started with AI in Your Advertising
The integration of AI into search advertising represents one of the most significant shifts in digital marketing since the advent of search engines themselves. Businesses that adapt their strategies now — focusing on intent over keywords, helpful messaging over promotional copy and comprehensive audience building — will be best positioned to succeed in this new landscape.
The future of search ads isn't about choosing between traditional and AI-driven approaches. It's about understanding how these approaches work together to create more effective, more relevant and ultimately more successful advertising campaigns that meet customers exactly when and where they're ready to engage.
With the constant evolution of AI technology and the complexity of managing multiple ad platforms, many businesses find value in partnering with a digital advertising agency that specializes in AI-powered search strategies. A trusted partner can help navigate the complexity of AI Overviews and Performance Max campaigns, stay ahead of rapid platform changes and provide specialized expertise across emerging AI advertising platforms — freeing up your team to focus on core business operations.
The AI era of search advertising is here. The question isn't whether to adapt, but how quickly you can position your business to take advantage of the opportunities it presents.
