In a major shift toward monetizing its evolving search ecosystem, Google has officially announced that advertisements will now be displayed within AI Mode in Search. This development comes shortly after the feature was made widely accessible to users across the United States.
The tech giant also confirmed that ads are being extended to desktop versions of AI Overviews—the AI-powered summaries that appear at the top of Google Search results. While some users had previously noticed promotional content in these areas, the company formally confirmed the rollout during its Marketing Live 2025 event, held just after the opening keynote at its annual I/O developer conference.
According to Google, internal metrics show that ads within AI Overviews have been positively received. “People have found these ads helpful because they offer direct pathways to relevant businesses, products, and services at the moment of need,” a company document stated.
Strategic Expansion of AI-Powered Advertising
Google showcased a range of new AI-based tools and advertising features during the Marketing Live event, aimed at strengthening its advertising ecosystem. The company, which earned over $66.89 billion in ad revenue in Q1 2025, is clearly positioning AI Mode as a cornerstone of its future search strategy—and monetizing it is a natural progression.
AI Mode allows users to interact with Search in a conversational format, receiving AI-generated responses accompanied by links. Ads in this interface will appear contextually—either below or within the generated answers—based on relevance.
AI Overviews, which deliver a brief AI-generated snapshot above the traditional web results, will also feature contextual ads. These will be marked as sponsored content and integrated only when deemed relevant to the user’s query and the AI’s response.
Rising Industry Competition and Regulatory Scrutiny
Google isn’t alone in embedding ads within AI-driven experiences. Rivals like Microsoft, OpenAI, and Perplexity are also exploring similar revenue strategies. However, these advancements have triggered concerns among content creators and publishers, many of whom fear losing traffic and ad revenue as AI becomes more central to search experiences.
Meanwhile, Google continues to face legal pressure in the U.S., where it has been found guilty of monopolistic practices in both the search and digital advertising markets. These rulings could lead to significant structural changes, including a potential breakup of its core businesses.
New AI Tools for Advertisers
Beyond changes to Search, Google introduced several tools aimed at advertisers:
- Imagen 4 and Veo 3, the company’s advanced image and video generation models, are now integrated into Google Ads and Merchant Center, allowing marketers to rapidly develop creative content.
- The AI Max for Search campaigns has been upgraded with Smart Bidding Exploration, a feature that helps advertisers display ads on potentially high-performing searches.
- Advertisers will also gain access to agentic AI tools, enabling more autonomous and intelligent campaign management.
As Google pushes forward with its AI-first vision, the integration of advertising into its latest search experiences highlights the company’s intent to redefine how users and businesses interact on its platform.
