Google revealed its plan to test ads within AI Overviews, starting soon for users in the U.S. Philipp Schindler, Google’s senior vice president and chief business officer, confirmed that search and shopping ads will soon appear in AI Overviews, marked clearly as "Sponsored" when relevant.

“We announced at GML, soon we'll actually start testing search and shopping ads in AI Overviews for users in the U.S. and they will have the opportunity to actually appear within the AI Overview in a section labeled as sponsored when they're relevant to both a query and the information in the ai overview and really giving us the ability to innovate here and take this to the next level,”  Schindler said.

How ads will be integrated with AI overviews

These ads will be integrated with existing campaigns, utilizing ads already set up by advertisers. This means that the new ads will work together with current advertising efforts. Specifically, advertisers won't need to create entirely new campaigns for these ads; instead, they can integrate them into their existing ones.

"Your ads from existing AI-powered Search and Performance Max campaigns will have the opportunity to appear within the AI Overview in a section clearly labeled as “Sponsored.”

Here’s a practical example of what this means:

Suppose you’re running a Google Ads campaign for a new skincare product. Currently, your ads appear based on broad keywords and audience targeting. With the new AI overview ads, Google’s AI will create a summary of top skincare products when a user searches for terms like "best anti-aging creams." As a result, your existing skincare ads might be featured in a more relevant context. For instance, if your product is highlighted in the AI-generated summary, it could appear prominently alongside related search queries, increasing its visibility to users looking for anti-aging solutions.

Other new shopping ad features

Google is also rolling out several ad formats including AI-powered recommendation ads. These ads will use multimodal inputs like photos for specific recommendations. These recommendations will be tailored to individual preferences and behaviors, such as photos or search history. These ads will undergo testing with select U.S. advertisers in the coming weeks.

For example, say a user uploads a photo of your kitchen to a food-related app, Google's AI might identify his interest in cooking gadgets and display ads for kitchen appliances or cooking classes. Similarly, if a user frequently searches for outdoor activities, he might see ads for camping gear or hiking trails.

Additional features include visual brand profile ads, which allow brands to tell their stories through images, videos, and promotions at the top of Google Search results. 

New shopping ad features include video highlights and virtual try-ons. This means consumers can interact with products in more immersive ways, such as viewing 360-degree images or using AI to try on products virtually.

For example, if you're looking to buy new sunglasses, a shopping ad might allow you to use your phone’s camera to virtually try on different styles. You can see how each pair looks on your face in real time. Additionally, video highlights could provide a detailed review or demo of the sunglasses, showing how they look in various lighting conditions and activities.