AI Mode and AI Overview Ads are expected to launch in H2.
Search is entering a new phase. It is now powered by intelligent, agentic, and personalised assistance. With AI Mode and AI Overviews at the center, Google has made clear that AI will be the cornerstone of its search evolution. Wider rollouts with integrated ad formats are expected in the second half of 2025.
Users gain richer insights, deeper interactions, and multimodal ways to explore. Businesses unlock new advertising frontiers with stronger and high-intent connections.
Understanding AI Mode
What it is: AI Mode is designed to tackle users’ toughest and most complex questions, going beyond short keyword-based queries.
How people use it: On average, AI Mode queries are twice as long as traditional search queries, reflecting a shift toward more conversational, contextual, and multi-part requests.
Why it matters: Longer, more detailed queries allow for deeper understanding of user intent. For advertisers, this creates an opportunity to connect at moments of clearer need and higher purchase readiness.
Example use case: Someone might ask, “What’s the best setup for remote video podcasting with limited space and budget?” AI Mode can provide structured recommendations while surfacing ads for microphones, soundproofing kits, or editing software that match the inferred needs.
The Rise of AI Overviews
- Global adoption: AI Overviews already reach over 2 billion monthly users across 200+ countries and 40 languages.
- User behaviour: People report higher satisfaction and tend to search more often after engaging with AI Overviews. This suggests stickier, more valuable search sessions.
- Discovery power: By summarising complex questions, AI Overviews serve as an entry point to brands, services, and products, guiding users toward next actions.
- Example use case: A search like “How to bring small dogs on flights” might return an AI Overview with airline policies, helpful travel tips, and ads for dog carriers. These ads feel contextually relevant even if the original query didn’t explicitly request them.
The Future Of Ads Is Powered By AI
Ads in AI Overviews
- Already launched in select regions, now expanding to desktop and more countries.
- Ads appear within or alongside AI Overviews, letting users quickly connect with businesses at the decision-making stage.
- Data shows people find these ads helpful, not intrusive, since they align with immediate needs.
Ads in AI Mode
- Currently in experimental stages, ads are being tested below AI Mode responses or even integrated within answers.
- This format aims to make ads feel like natural extensions of the guidance users are already receiving.
Why This Matters for Advertisers
- Deeper Intent Signals: AI-driven queries reveal not just what users want, but why. This enables more predictive, personalized ad placements.
- New High-Value Inventory: As AI Mode and Overviews capture more engagement, ad space within these features represents prime real estate.
- Stronger ROI: Google Search ads already deliver an incremental ROAS of $6 for every dollar spent globally. With AI enhancements, the value of each ad impression could rise further.
- Discovery-Led Journeys: With 75% of shopping queries being broad and exploratory, AI-enhanced search helps advertisers insert their brand earlier in the funnel.
Preparing for the AI Search Era
Businesses need to adapt quickly to succeed in this evolving landscape. Key steps include:
- Invest in AI-Powered Campaigns: Adopt tools like AI Max for Search, which is already driving 27% more conversions at comparable costs.
- Enhance Feed Hygiene: For retailers, ensuring structured data, clean product feeds, and high-quality content is critical for representation in AI-enhanced search results.
- Multimodal Optimisation: As search expands beyond text into images, videos, and visual queries (via Lens and Circle to Search), brands must optimise across formats.
- Measure Beyond Clicks: Success should be tracked not just by traffic, but by how effectively users complete tasks or convert after engaging with AI-driven search results.
A New Era of Discovery and Advertising
With AI Mode and AI Overview Ads expected to expand significantly in H2 2025, Google is signaling a new era for both users and advertisers. For users, search will feel more like a conversation. It will be contextual, helpful, and multimodal.
For advertisers, it represents a chance to engage with customers at moments of heightened intent and exploration, reshaping the path from discovery to decision.
The businesses that adapt quickly, embracing AI-powered campaigns, optimizing content for multimodal discovery, and aligning with user intent, will be best positioned to thrive in this AI-first search landscape.
Need a fresh perspective? Let’s talk.
At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.
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