Ads Inside AI Mode: What Australian Advertisers Need to Know

ads in ai mode

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Google Search is becoming more conversational, and advertising is moving with it. Instead of typing a short keyword, people can now ask AI Mode detailed questions, compare options and continue the conversation with follow-up searches.
For advertisers, that creates new commercial moments. Ads in AI Mode can appear alongside or within AI-generated responses when Google identifies relevant buying intent. But Australian businesses need to understand an important distinction. AI Mode itself is available in Australia, while many of its newest advertising formats are still being tested rather than offered as a separate campaign type you can simply switch on.
At the same time, Google Ads in AI Overviews are already much more established in Australia.

Can I Show Ads in AI Mode?

Yes. Ads can appear within AI Overviews in Australia.
Google currently allows ads to appear above, below or inside AI Overviews. Ads placed above or below AI Overviews can appear across markets where the feature is available, while ads within AI Overviews are available in English in selected countries, including Australia.
Eligible ads currently include:
  • Search text ads
  • Shopping ads
  • Ads from Performance Max campaigns
The important point is that you do not create a separate “AI Overview campaign”.
Google uses existing campaigns and determines whether an ad is relevant to both the original search and the content of the AI-generated answer. The normal auction still matters, but AI-assisted Search gives Google additional context about what the user is trying to accomplish.
For example, someone might search:
“Which type of air conditioner is best for a small Melbourne apartment that gets afternoon sun?”
The initial query is more detailed than a traditional keyword such as “air conditioner Melbourne”. Google can interpret the broader situation and potentially match a relevant advertiser to the next step.
That is one reason Shopping ads in AI Overviews and Search advertising are becoming less dependent on exact keyword phrasing.
If you are deciding whether paid search still deserves budget as Google changes its results pages, our guide to whether PPC advertising is worth it provides a useful starting point.

Can I Use Ads on Google AI Mode?

Potentially, but AI Mode advertising is still evolving.
Google has been testing advertising inside AI Mode, including placements integrated into AI-generated responses. In 2026, it announced additional experimental formats such as Conversational Discovery ads and Highlighted Answers.
Conversational Discovery ads are designed around detailed questions. Google can use Gemini to provide additional context around an advertiser’s product or service based on the user’s specific need.
Highlighted Answers take a different approach. When AI Mode produces a list of suggestions, a highly relevant sponsored option may be presented within that recommendation experience.
Google has also been testing retail-focused formats that connect AI Mode users with merchants selling products surfaced during their research, alongside initiatives such as Direct Offers.
For Australian advertisers, however, the practical message is not “create an AI Mode campaign today”.
Google’s documentation still describes many AI Mode ad formats as tests. Availability can vary by format, campaign type and market. Businesses should therefore prepare their Google Ads foundations rather than assume every announced placement is immediately available in Australia.

How to Advertise With Google AI

There is currently no universal “advertise in AI Mode” button.
Instead, Google is connecting its AI search experiences with existing and newer AI-powered campaign capabilities.

Use campaign types that can participate in AI search

For AI Overviews, Google says eligible Search, Shopping and Performance Max campaigns can appear when the ad wins the auction and is relevant to the query and generated content.
For emerging AI Mode opportunities, Google recommends building a foundation around products such as AI Max for Search, AI Max for Shopping and Performance Max.

Give Google enough context

Conversational searches can be far more specific than traditional keywords.
That makes strong landing pages, product feeds and creative assets increasingly important. If your website only says that your service offers “quality solutions”, there is little context for an advertising system to work with.
A stronger landing page clearly explains:
  • who the service is for
  • what problems it solves
  • where it is available
  • important features or inclusions
  • pricing information where appropriate
  • why someone should choose it
  • what action they should take next
Retailers should also pay close attention to Merchant Centre. Google says AI-powered shopping experiences draw on product data, and its newer shopping tools use attributes from feeds and websites to match products to complex searches.

Do not abandon measurement

AI changes where ads appear, not the need to measure whether they work.
Monitor conversion rate, cost per acquisition, conversion value and return on ad spend alongside clicks and impressions. Our guide to the PPC metrics that actually matter explains how to separate useful performance indicators from vanity metrics.

How to Appear in Google AI Overview

There are two different ways a business can appear around an AI Overview: organically or through advertising.
For paid visibility, you need an eligible Google Ads campaign. Google then determines whether your ad is suitable based on factors including the auction, the user’s intent and the content of the AI Overview.
For organic visibility, there is no paid shortcut. Strong SEO, useful content, crawlability and relevance remain important.
That creates an increasingly interesting relationship between SEO and paid search. A business might be cited organically within an AI-generated answer while another advertiser appears as the sponsored next step.
Australian businesses should therefore avoid treating the Google Ads AI era as purely a media-buying change. Your website, product information, conversion tracking and creative all influence how effectively you can compete.
And if your campaigns receive traffic but fail to produce enquiries or sales, the placement itself may not be the problem. See our guide to why Google Ads are not converting before simply increasing spend.

Prepare for Search Where the Ad Becomes Part of the Answer

AI Mode is changing Google Search from a sequence of queries into a longer research conversation. Advertising is following that behaviour.
For Australian businesses, the immediate opportunity is clear: ads within AI Overviews are already available, while richer AI Mode formats are developing quickly. The sensible approach is to strengthen campaigns, feeds, landing pages, measurement and creative now rather than wait for every new format to become widely available.
If you want your Google Ads account ready for both traditional Search and AI-driven placements, explore Adcept Marketing’s paid advertising services for campaign strategy and optimisation focused on measurable business outcomes.

FAQs

Are ads in AI Mode available in Australia?

AI Mode itself is available in Australia, but Google continues to describe several newer AI Mode advertising formats as tests. Advertisers should check their account eligibility rather than assume every announced format is broadly available.

Do I need a special campaign for AI Overview ads?

No. Eligible ads from existing Search, Shopping and Performance Max campaigns can appear within AI Overviews when Google’s requirements are met.

Are ads inside AI-generated answers clearly labelled?

Yes. Google says advertising integrated into its AI search experiences is labelled as sponsored.

Can Shopping ads appear in AI Overviews?

Yes. Eligible Shopping ads can appear within AI Overviews in supported markets such as Australia.

Will exact-match keywords still matter?

Keywords remain useful, but conversational AI searches make broader intent coverage increasingly important. Google recommends AI-powered targeting approaches such as broad match, AI Max and other keywordless technologies for reaching relevant AI Overview searches.

ABOUT THE AUTHOR

Picture of Ammar Saleem

Ammar Saleem

Ammar Saleem is a Copywriter at Adcept Marketing who’s spent the last five years helping brands turn smart automation into real results. From search engine optimization to sales funnels and landing pages, he creates content that connects with audiences and drives action. Ammar Saleem has a talent for breaking down complex ideas into clear, practical messaging and he loves helping businesses simplify their marketing so growth feels effortless.

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