Google is introducing a new generation of Gemini-powered ad formats across AI Mode and Search designed to make ads feel more conversational, contextual and helpful as unveiled today at Google Marketing Live 2026.
Driving the news. The company announced several new ad experiences for AI-powered Search, including Conversational Discovery ads, Highlighted Answers, AI-powered Shopping ads and Business Agent for Leads. The updates are part of Google’s broader push to integrate Gemini deeper into Search and advertising experiences.
Conversational Discovery ads are designed to answer a person’s specific question directly inside AI Mode. For example, someone searching for ways to make their home smell like a spa could see tailored creative generated with Gemini that highlights relevant product features.
How it works. Google’s Gemini models analyze the intent behind a user’s query and dynamically generate ad creative tailored to that specific conversation. The ads also include an independent AI explainer that evaluates and summarizes product or service information alongside the advertiser’s messaging.
Highlighted Answers will allow highly relevant ads to appear directly within AI-generated recommendation lists.
Google is also launching AI-powered Shopping ads for high-consideration purchases like TVs and appliances. Gemini will generate custom explainers highlighting why a product may fit a shopper’s needs.
Business Agent for Leads introduces an AI-powered chat experience directly within lead generation ads. Instead of filling out static forms, users can interact with a Gemini-powered brand agent trained on an advertiser’s website.
Google is also expanding its Direct Offers pilot with:
- Promotion bundling
- Native checkout for UCP merchants
- Travel deal integrations
- AI-generated offer recommendations
The updates will roll into AI Mode responses to help shoppers discover deals more naturally.
Why we care. Google is fundamentally changing how ads appear in AI-powered Search experiences.
Instead of relying on static creative and keyword matching alone, advertisers will increasingly need to optimize for conversational discovery, AI-generated explainers and intent-rich interactions.
The announcement also signals that AI Mode is becoming a larger monetization surface for Google. Advertisers that adapt early to conversational ad formats and AI-assisted shopping experiences may gain a competitive advantage as Search behavior evolves.
What to watch. Advertisers should closely monitor how AI-generated explainers and conversational ad placements affect click-through rates, conversion behavior and attribution. The rollout could also signal broader changes in how Search inventory is monetized as AI Mode usage continues growing.
Availability. Conversational Discovery ads and Highlighted Answers are currently being tested in the U.S. on mobile and desktop. AI-powered…
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