I’m excited to share that Google is testing new conversational ad formats, powered by Gemini, across AI Mode and Search. This development is aimed at making ads more contextual and engaging, bringing a fresh approach to advertising.
The introduction of these Gemini-powered formats was revealed at Google Marketing Live 2026. With these new ad experiences, ads are intended to feel more conversational, contextually relevant, and genuinely helpful to users like you and me.
Driving the news: Google announced exciting additions to AI-powered Search ads. These include Conversational Discovery ads, Highlighted Answers, AI-powered Shopping ads, and the Business Agent for Leads. All these are part of Google’s strategy to integrate Gemini deeper into its Search and advertising framework.
Conversational Discovery ads are really innovative! Imagine asking a question about making your home smell like a spa, and right there in AI Mode, you see creative solutions generated with Gemini that perfectly match your query.
How it works: Google’s Gemini models analyze what you’re really asking and create ad content that fits the conversation. These ads come with an AI explainer that helps you understand the product or service better, integrating it with what the advertiser wants to tell you.
I’m particularly intrigued by the Highlighted Answers, where relevant ads pop up right within AI-generated recommendations. It feels like a natural extension of the conversation!
Additionally, Google is rolling out AI-powered Shopping ads for significant purchase decisions like buying a new TV or home appliance. Gemini steps in to create unique explainers that highlight why a product might be perfect for your needs.
Business Agent for Leads takes interactivity to a new level by embedding an AI chat experience in lead generation ads. Instead of completing static forms, you can chat with a Gemini-powered agent to learn more, directly informed by the sponsor’s website.
Moreover, Google is expanding its Direct Offers pilot, bringing features like promotion bundling, native checkout for UCP merchants, and AI-generated offer recommendations to the table. This ensures offers are tailored to what you might actually be shopping for!
Why we care: These updates represent a paradigm shift in how ads are rendered in AI-powered Search ecosystems. By focusing on conversational discovery and intent-rich interactions, I believe Google is paving the way for advertisers to better connect with their audiences.
It’s crucial for advertisers, who adapt quickly to these new ad formats, to optimize experiences that resonate better, potentially gaining an edge as user search habits evolve.
What to watch: As the rollout continues, I’ll be keeping an eye on how these conversational placements impact metrics like click-through rates and conversions. The broader implications for monetizing search with AI are enormous!
For those wondering when they can see these innovations: Conversational Discovery ads and Highlighted Answers are currently in testing phases in the U.S. on both mobile and desktop platforms. Meanwhile, AI-powered Shopping ads and the Business Agent for Leads feature are expected to unfold soon, starting in open beta for U.S. businesses.
Dig deeper: If you’re interested in more groundbreaking updates from Google Marketing Live 2026, check out these stories:
- Google launches AI Performance Insights and Conversational Attributes in Merchant Center
- Google expands Direct Offers with AI-generated bundles, native checkout, and travel deals
- Google brings Meridian marketing mix modeling into Analytics 360
- Google expands Demand Gen with YouTube creator tools
- Google upgrades Asset Studio with Gemini-powered creative generation and video tools
- Google expands Universal Commerce Protocol and launches new agentic shopping tools
- Google launches Ask Advisor across Ads, Analytics, and Merchant Center
Inspired by this post on Search Engine Land.
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