Stock Markets May 20, 2026 12:04 PM

Google Trials Gemini-Powered Ad Formats to Enrich Search Results

New AI-driven ad types aim to synthesize product information, support conversational queries and expand in-ad commerce features

By Jordan Park GOOGL

Google is testing a set of advertising formats that rely on its Gemini AI model to present more tailored product information inside Search. The company said AI Mode helps 75% of users make faster, more confident choices, and the new units include conversational responses, AI-generated shopping explanations, in-ad chat agents and expanded Direct Offers capabilities with promotion bundling and native checkout integration.

Google Trials Gemini-Powered Ad Formats to Enrich Search Results
GOOGL

Key Points

  • Google is testing Gemini-powered ad formats in Search; it reports that 75% of users made faster, more confident decisions using AI Mode.
  • New formats include Conversational Discovery ads, Highlighted Answers, AI-powered Shopping ads and Business Agent for Leads; all will be labeled as sponsored.
  • Google is expanding its Direct Offers pilot (launched January 2026 with Chewy, Gap and L’Oreal) with promotion bundling and native checkout for Universal Commerce Protocol merchants; travel partners like Booking and Expedia can surface special offers.

Google announced a test of several advertising formats on Wednesday that use its Gemini artificial intelligence model to deliver more contextual product information during consumer searches. The company reported that 75% of users make faster and more confident decisions when using AI Mode in Search.

All of the new ad formats will be clearly marked as sponsored content, and one of the central elements Google described is a set of "independent AI explainers" that synthesize product details alongside advertiser-supplied content.

The company outlined multiple specific formats:

  • Conversational Discovery ads - Designed to respond to targeted user questions by surfacing relevant product features. Google offered an example: a query about making a home smell better could trigger an ad crafted to address that particular intent.
  • Highlighted Answers - These will show pertinent ads within AI Mode recommendation lists. An example cited by Google is presenting language learning apps for travelers within relevant recommendations.
  • AI-powered Shopping ads - Targeted at product categories such as appliances and electronics, these ads will use Gemini to generate tailored explanations for why particular products may be suitable for a shopper's needs.
  • Business Agent for Leads - This feature allows prospective customers to interact with an AI agent inside an ad to obtain answers based on the information available on a company’s website.

Google also said it is expanding its Direct Offers pilot, which was launched in January 2026 and initially included brands such as Chewy, Gap and L’Oreal. Enhancements to that pilot include promotion bundling - where AI constructs offers like product bundles tailored to specific searches - and native checkout integration for merchants using the Universal Commerce Protocol. Google noted travel partners, including Booking and Expedia, will be able to present special offers within AI-assisted trip planning flows.

To help advertisers adopt the new formats, Google recommended using AI Max for Search, AI Max for Shopping campaigns and Performance Max. The company positioned those campaign types as the means for advertisers to take advantage of the evolving, AI-driven ad experiences in Search.


The rollout is presented as a testing phase with targeted pilots and recommended advertiser tools, and Google emphasized clear labeling of sponsored content while broadening commerce and lead-generation capabilities within Search.

Risks

  • The initiatives are being tested and remain in pilot phases, creating uncertainty about broader rollout and commercial adoption - impacts advertisers, e-commerce merchants and travel partners.
  • Google recommends advertisers shift to AI Max for Search, AI Max for Shopping and Performance Max to leverage the new formats, which may require advertisers to change campaign strategies and budgets - impacts the digital advertising sector and brand marketers.
  • Direct Offers expansion initially includes a limited set of brands and specific integrations such as Universal Commerce Protocol native checkout, indicating phased merchant support and potential limitations for broader merchant adoption - impacts retail and e-commerce markets.

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