Google expands advertising in AI Overviews and AI Mode

Google is intensifying the integration of advertising into its AI-powered search functions. Since March 2025, AI Overviews have also been available in Germany and other European countries. The ads will be displayed not only in the mobile versions of AI Overviews, but also in the desktop versions. Ads are now also appearing in AI Mode, which is already available to many users in the US. This mode provides more detailed, dialogue-oriented answers and integrates advertising contextually into the AI-generated content.

Even more visible in Google Search

In addition to integrating advertising into AI Overviews and AI Mode, Google is expanding the options for advertisers to place their ads specifically in these AI-powered search features. Businesses that already use Performance Max, Shopping or Search campaigns with relevant keywords can now also place their ads in AI Overviews and AI Mode. This enables more precise targeting of users who are in the information or decision-making phase.

An example of this application is a search query in AI Mode such as “create a website for small businesses at a low price”. The AI provides a comprehensive answer with step-by-step instructions and product recommendations. In this context, an ad for a website builder can be displayed to help the user take the next logical step.

These developments open up new opportunities for advertisers to reach potential customers exactly when they are actively looking for solutions. By combining AI-powered answers with relevant ads, businesses can increase their visibility and guide users more effectively through the purchase decision process.

AI Overviews are becoming increasingly important

AI Overviews provide users with AI-generated summaries of search queries and appear above traditional search results. Ads within these overviews are labelled as ‘Sponsored’ and are displayed when they match both the search query and the generated response.

With these measures, Google is pursuing its goal of further increasing its advertising revenue. In 2024, the company already generated $265 billion from advertising. The integration of ads into AI-powered search functions is intended to help further expand this revenue.

However, the integration of advertising in the AI Overviews section has not yet been implemented across the board in Germany. It remains to be seen how these developments will affect the German market and the strategies of advertisers.

However, there are also concerns about the impact on publishers and SEO strategies. The News/Media Alliance criticised that AI-generated responses could discourage users from clicking on external links, which could lead to a decline in traffic to news websites. For companies and marketers, this means optimising their strategies and taking the new advertising formats in AI Overviews and AI Mode into account in order to continue to achieve effective visibility and reach.