Google is testing new ad formats in Search built on Gemini. Conversational Discovery ads respond to specific user queries — for example, when someone searches for ways to scent a home, the ad displays relevant product features with AI-generated explanations. Highlighted Answers embed sponsored offers inside AI Mode recommendation lists, such as when selecting language-learning apps.
Both formats include independent commentary from Gemini: the model analyses the product and surfaces context alongside the advertiser's creative. Ads remain labelled as Sponsored.
In the coming months Google will add AI-powered Shopping ads — when a user asks about espresso machines, Gemini selects products and generates an explanation of why a particular model fits. Business Agent for Leads replaces static forms: instead of filling fields, a student can ask questions to a chat agent that draws on the brand's site and converts the conversation into a lead.
The Direct Offers pilot, which launched in January with Chewy, Gap and L'Oreal, is getting three updates. Promotion bundling lets advertisers upload discounts, gifts and local coupons — Gemini assembles a relevant bundle for each query. Native checkout integration via Universal Commerce Protocol speeds up purchase completion. Travel partners including Booking and Expedia will be able to show special offers inside AI trip-planning features.
Direct Offers now appear in AI Mode responses automatically. Google recommends that operators configure AI Max for Search, AI Max for Shopping and Performance Max to access the new formats. The company will continue testing to balance user experience and campaign performance.
