I recently came across some interesting news about Google and its potential plans to incorporate ads into its Gemini AI app. A senior executive at the company shared with WIRED that ads in Gemini are not out of the question — a stark contrast to previous denials just a few months ago.
What’s changed: Back in January, Google DeepMind CEO Demis Hassabis assured reporters at Davos that there were no plans to introduce ads in Gemini. However, now Google’s SVP Nick Fox has hinted otherwise, mentioning that insights gained from ads in AI Mode could eventually be applied to Gemini.
The current strategy. Instead of rushing into ads within Gemini, Google is leveraging AI Mode — a search product powered by Gemini — as a testing ground for advertising formats in AI settings.
Here’s how they’re currently managing it:
- Ads are distinct from organic results and clearly labeled.
- Only relevant ads are displayed — if there’s nothing that fits, no ads are shown.
- Google’s extensive experience in search ads informs this approach.
Why we care. Advertising is at the core of Google’s business model. How they introduce ads into AI products like Gemini will have a significant impact on the industry and influence how AI companies monetize their free services. Brands that can position themselves effectively within these conversational AI platforms now will gain a crucial advantage.
The bigger picture. Google, with its strong financial backing, is in a comfortable position to proceed at a steady pace, having surpassed $400 billion in revenue in 2025. In contrast, OpenAI is under pressure to more than double its $30 billion revenue target this year and has already begun testing ads in ChatGPT’s free tier.
Between the lines: Fox’s remarks are strategically cautious but enlightening. By framing Gemini ads as a “prioritization question” rather than a debate of values, Google hints that it’s more about when the ads will appear, not if.
What to watch: There’s an intriguing aspect of Gemini called Personal Intelligence, which extracts data from a user’s Gmail, Photos, and Calendar. Fox considers personalization to be critical for search, and it may eventually integrate into the broader Search experience. If that occurs, advertisers could tap into a new realm of contextual targeting, though user data will strictly remain unsold and unshared.
What’s next. Advertisers should start preparing now. As Google fine-tunes AI ad formats in AI Mode, these insights will make their way to Gemini. Brands that master the art of being relevant in context-driven, conversational AI environments will be well ahead when the opportunity for advertising in Gemini fully materializes.
Dig deeper. For a more detailed exploration of Google’s advertising strategy in Gemini, check out the full article on WIRED.
Inspired by this post on Search Engine Land.
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