Google is now showing ads within AI Mode across India and the US. This marks a significant shift for Indian businesses seeking better customer engagement.
AI Mode is Google’s conversational search interface that blends traditional results with AI summaries. According to internal documentation from Google, ads will draw from existing Search, Shopping, and Performance Max campaigns. These ads align with user queries and AI-generated content context, focusing on identifying commercial intent and presenting helpful ads as next steps.
Why It Matters Now
This update was confirmed at Google Marketing Live India in July. The company announced AI-powered search ads would arrive in India through both AI Overviews and AI Mode.
According to HelloPartner’s conversation with Profound’s Ben Grosse, AI Mode quotes affiliate sites in only 2.83% of answers, presenting challenges and opportunities for Indian businesses. Google’s approach contrasts with competitors like OpenAI, maintaining its traditional ad formats within chat interfaces.
Market Impact in India
The rollout covers English interfaces on mobile and desktop platforms, with more regions and languages expected soon. Over 15% of daily searches are completely new and becoming longer, more complex, and conversational.
“Over the past year, new searches are more conversational with no single right answer,” said Dan Taylor, Vice President of Global Ads at Google, during a media roundtable.
India became the first market outside the US to receive AI Mode in Search, showcasing Google’s commitment to the Indian digital ecosystem.
Strategic Advantage
Businesses must utilize Google’s AI targeting tools like Broad Match and Performance Max to participate effectively. Google emphasizes the importance of quality content and user utility in the optimization guidance they released.
Ads in AI Mode will prominently feature ‘Sponsored’ labels to differentiate them from organic chatbot responses. Google reports that AI Overviews now serve over 1.5 billion users monthly, driving usage increases in major markets.
What Business Leaders Should Know
Google introduced AI Max settings for advertisers aimed at enhancing campaign performance, which learned from existing content. Cashify, an online electronics marketplace, experienced significant conversion increases through AI Max, highlighting the update’s relevance for Indian businesses to reassess their advertising strategies as they navigate this transformation alongside the recent abolition of the ‘Google tax’ on online ads.
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