How Ads in AI Search Will Change Brand Discovery and SEO in Future

Google just dropped a bombshell at Marketing Live 2025 that confirms what many suspected: AI search advertising isn't coming it's here. With over 5 trillion searches annually now influenced by AI tools like AI Overviews and the new AI Mode, Google's latest announcements fundamentally reshape how brands will be discovered online.

The announcements from May 21, 2025, aren't just product updates. They signal the most significant transformation in digital advertising since the mobile revolution. Here's exactly what's changing and how to position your brand for success in this new landscape.

Google's Game-Changing Announcements: What Just Happened

AI Overviews Ads Now on Desktop

After launching mobile ads in AI Overviews in October 2024, Google is expanding to desktop immediately. This means when users see AI-generated summaries at the top of search results, relevant ads will appear integrated within those responses—not just alongside them.

Why this matters: AI Overviews improved dramatically in 2024 after its bug-laden launch. According to Google CEO Sundar Pichai, they're now a massive contributor to user satisfaction and engagement. Users spend more time with AI Overviews and ask new types of questions, creating unprecedented opportunities for brands.

AI Mode Gets Ads: The Conversational Revolution

Today, we're expanding ads in AI Overviews to desktop, and bringing ads to AI Mode to create new opportunities for our customers. AI Mode, Google's most advanced search experience, will now include advertising integrated directly into conversational responses.

What AI Mode actually does:

• Performs multiple concurrent searches based on your query

• Uses Gemini 2.0 for advanced reasoning and multimodal responses

• Allows follow-up questions for deeper exploration

• Integrates real-time data from Knowledge Graph and shopping feeds

For advertisers, this means your products can appear naturally within conversational journeys, not just as sidebar interruptions.

Smart Bidding Exploration: The Decade's Biggest Update

Building on that, today we're launching our biggest update to bidding in over a decade: Smart Bidding Exploration. This isn't just an algorithm tweak—it's a fundamental shift in how Google identifies conversion opportunities.

What it does: Pursues "less obvious and potentially high-performing searches," essentially finding customers you didn't know existed. Early testing shows campaigns can see 14% more conversions at similar cost-per-acquisition, with some seeing up to 27% improvement.

The New Reality: How Brand Discovery Actually Works Now

Forget traditional keyword-based discovery. Here's how customers will find brands in the AI search era:

Query Fan-Out Technology

When someone asks AI Mode a question, Google doesn't run one search—it runs hundreds simultaneously. Your brand needs to be relevant across multiple related queries, not just exact matches.

Example: User asks "planning a home office for video calls"

• Traditional search: Shows results for "home office setup"

• AI Mode: Simultaneously searches lighting options, acoustic panels, backgrounds, desk arrangements, camera angles, and equipment—then synthesizes comprehensive advice where your products naturally fit

Context-Aware Integration

In AI Overviews, ads are inserted in AI-generated summaries "when relevant to both the query and the response provided," Google says. This isn't keyword matching—it's semantic understanding of when your product genuinely helps solve the user's problem.

Multi-Turn Conversations

Users no longer search once and click. They engage in conversations, asking follow-up questions and refining their needs. Your brand must remain relevant throughout this journey, not just at the initial query.

What AI Max for Search Means for Your Campaigns

Google's new AI Max for Search campaigns represents a radical departure from traditional campaign management. Here's what changes:

Automatic Expansion Beyond Keywords

With search term matching, you can expand upon your existing keywords using broad match and keywordless technology to find more relevant and high-performing search queries — queries and conversions that you'd otherwise miss.

The system learns from your:

• Current keywords

• Creative assets

• Landing page content

• Conversion data

Then finds entirely new queries you never thought to target.

Performance Gains Are Real

The data already shows that advertisers that activate AI Max in Search campaigns will typically see 14% more conversions or conversion value at a similar CPA/ROAS. For campaigns heavily reliant on exact match keywords, gains reach 27%.

One-Click Activation

Unlike complex AI implementations, AI Max activates with a single click in your Google Ads interface, making it accessible even for smaller advertisers.

The Creative Revolution: Veo and Imagen Change Everything

In the last two months, we've made incredible strides improving the quality of our creative tools powered by our leading video and image generation models, Veo and Imagen. These aren't just editing tools—they're creative partners.

What's Now Possible:

• Transform static product images into dynamic videos

• Generate contextual backgrounds for products automatically

• Create multiple ad variations from single assets

• Produce vertical, square, and horizontal formats instantly

• Generate shopping-specific creative that matches user intent

The Retail Game-Changer

For e-commerce brands, Google's testing AI-generated backgrounds that adapt to search context. A camping tent might show against mountains for "adventure camping" queries but appear in a backyard for "family camping" searches—automatically.

Agentic Capabilities: Your AI Marketing Assistant

We are unveiling new agentic capabilities, which give marketers the power of their very own Google AI so they can adapt and succeed with less effort. Think of this as having a Google AI expert on your team.

What agents will do:

• Monitor campaign performance continuously

• Suggest optimizations based on real-time data

• Create ad variations automatically

• Adjust bidding strategies proactively

• Generate performance reports with insights

This democratizes advanced advertising capabilities, making enterprise-level optimization available to businesses of all sizes.

Immediate Actions: Your 30-Day AI Search Roadmap

Week 1: Foundation Setting

1. Audit Your Current Presence: Check how your brand appears in AI Overviews today

2. Activate AI Max: Enable it on your top-performing Search campaigns

3. Review Creative Assets: Ensure you have high-quality images ready for AI enhancement

4. Update Structured Data: Implement comprehensive schema markup immediately

Week 2: Content Optimization

1. Create Conversational Content: Develop FAQ-style content that answers complete questions

2. Build Topic Clusters: Connect related content to establish topical authority

3. Enhance Product Descriptions: Add use cases, comparisons, and problem-solving context

4. Implement Entity Markup: Connect your brand to relevant concepts and categories

Week 3: Campaign Evolution

1. Test Smart Bidding Exploration: Enable on campaigns with stable performance

2. Expand Match Types: Shift from exact match to broad match with AI Max

3. Upload Creative Assets: Provide multiple formats for AI to optimize

4. Set Up Conversion Tracking: Ensure all valuable actions are tracked

Week 4: Advanced Implementation

1. Monitor AI Mode Appearances: Track when and how your brand appears

2. Analyze New Search Terms: Review queries AI Max is finding

3. Test Creative Tools: Experiment with Veo and Imagen when available

4. Prepare for Agents: Organize campaign structure for AI management

Industry-Specific Strategies for AI Search Success

E-commerce and Retail

• Focus on product feed optimization with detailed attributes

• Create comparison content that AI can reference

• Build size guides, compatibility charts, and use case scenarios

• Implement real-time inventory updates for local availability

B2B Services

• Develop comprehensive solution pages explaining complex offerings

• Create industry-specific case studies AI can cite

• Build glossaries and educational content establishing expertise

• Focus on problem-solution mapping in all content

Local Businesses

• Optimize Google Business Profile with rich details

• Create location-specific content AI can surface

• Build service area pages with local context

• Ensure NAP consistency across all platforms

Healthcare and Professional Services

• Focus on E-E-A-T signals with clear credentials

• Create condition or problem-specific content paths

• Build trust signals AI systems can verify

• Develop comprehensive FAQ sections

Measuring Success in the AI Advertising Era

Traditional metrics won't capture AI search performance. Here's what to track:

New KPIs for AI Search

1. AI Overview Impression Share: How often you appear in AI-generated responses

2. Conversation Depth: Average number of queries per user session

3. Context Relevance Score: How well your ads match user intent

4. Cross-Query Performance: Success across related searches

5. Entity Association Strength: How strongly AI connects your brand to relevant topics

Attribution Evolution

With Smart Bidding Exploration pursuing less obvious and potentially high-performing searches, attribution becomes more complex. Focus on:

• Incrementality testing to measure true impact

• Customer lifetime value rather than single conversions

• Cross-channel influence of AI-driven discovery

• Brand lift studies to capture upper-funnel impact

Common Pitfalls and How to Avoid Them

Pitfall 1: Treating AI Ads Like Traditional Search

Problem: Copy-pasting traditional ad copy into AI campaigns Solution: Write conversationally, answering specific user needs

Pitfall 2: Ignoring Semantic Relationships

Problem: Focusing only on direct keywords Solution: Build comprehensive topic coverage across your site

Pitfall 3: Static Creative Assets

Problem: Using the same images everywhere Solution: Provide diverse assets AI can adapt contextually

Pitfall 4: Neglecting Technical SEO

Problem: Poor site structure limiting AI understanding Solution: Implement proper schema, clean URLs, and fast loading

Pitfall 5: Resisting Automation

Problem: Maintaining manual control over every aspect Solution: Embrace AI-driven optimization while monitoring results

The Future Is Now: What Happens Next

Based on Google's announcements and current trajectory:

Next 6 Months

• AI Mode becomes default search experience for many users

• Ad formats continue evolving based on user behavior

• More advertisers see significant performance improvements

• Traditional SEO metrics become less relevant

Next 12 Months

• Agentic capabilities become standard in Google Ads

• Creative AI tools fully integrated into workflow

• New measurement frameworks emerge

• Smaller advertisers gain competitive advantages

Next 24 Months

• Conversational commerce becomes primary discovery method

• Visual search integration deepens

• Predictive advertising anticipates needs

• Traditional search advertising becomes niche

Your Competitive Advantage in AI Search Advertising

The brands that win in this new era won't be those with the biggest budgets—they'll be those who adapt fastest to conversational, context-aware discovery. Google's announcements make clear that AI-powered search rewards genuine value, comprehensive information, and authentic brand voices.

Start today. Every day you wait, competitors are building their presence in AI responses, training Google's systems to surface their solutions, and capturing customers you'll never see.

The question isn't whether to adapt to ads in AI search it's whether you'll lead the change or scramble to catch up. With Google's tools now available, there's no excuse for waiting. Your future customers are already asking AI for solutions. Make sure your brand is part of the answer.