How Do Google AI Mode Ads Work? Now Live in India

Google AI Mode ads are text and Shopping ads from your existing Search, Shopping and Performance Max campaigns that Google shows within or alongside AI Mode answers, labelled "Sponsored", and on 28 October 2026 Google said it is bringing them to India and nine other countries.

There's no new campaign type and no separate opt-out. This guide covers how the ads look, which campaigns and match types qualify, what reporting you get, why Google is moving now, and what an advertiser in India can do this week.

Key takeaways

• On 28 October 2026 Google began scaling ads in AI Mode to India and nine other countries, with Brazil, Mexico and the UK planned for later in Q4 2026.
• No new campaign is needed: existing Search, Shopping and Performance Max campaigns are eligible automatically, in the same auction and at no extra charge.
• AI Max for Search, broad match, Shopping and Performance Max can be matched to the whole conversation; exact and phrase match only qualify when the query shows direct commercial intent.
• Ads inside AI Mode are English only, though AI Mode in India also works in Hindi and seven other Indian languages.
• You can't opt out of AI Mode separately, and its results aren't reported separately: they're folded into your normal campaign and search terms reports.

What are Google AI Mode ads?#

AI Mode is the conversational tab in Google Search that answers longer questions with an AI-written response and takes follow-ups. AI Mode ads are paid placements inside it. Google's help page on ads in AI-powered experiences in Google Search says they can appear directly within or alongside the AI response, and that they're built from assets already in your campaigns: headlines, descriptions, images, prices and landing pages.

What they look like:

• A "Sponsored" label. Every ad within AI Mode and AI Overviews carries it and is visually separated from the organic answer.
• Text ads and Shopping ads. These are the two supported formats. Google says it's also experimenting with local inventory ads and vehicle ads.
• Sponsored product list items. For shopping questions, ads can sit among the products listed in the answer. Google says their click-through rates are already similar to organic product list items, based on US data from 20 August to 3 September 2026.
• An AI explainer. Some ads come with a short line of text, generated by Google's Gemini models, that explains how the ad relates to the search. Advertisers can't write, edit, approve or switch it off. Sometimes Google shows a plain section header instead.

Google is also testing two newer formats from Google Marketing Live (20 May 2026): Highlighted Answers, which place a relevant ad inside a list of recommendations, and Conversational Discovery ads, where Gemini builds the creative around a person's question. Google's Marketing Live search ads announcement calls both tests and doesn't name countries.

What changed on 28 October 2026?#

In its post on ads in AI Mode expanding to new markets, Shashi Thakur, Google's VP and GM of Search Ads, announced two changes:

1. Ten more countries. Ads in AI Mode are scaling to Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. Google plans more locales in Q4 2026, including Brazil, Mexico and the United Kingdom.
2. Multiturn ads in the US. These let ads appear on the answers to follow-up questions as people go back and forth with AI Mode. Google hasn't said when multiturn ads will reach other countries.

Google's help page adds the fine print. Ads within AI Overviews and AI Mode are available in English only. Pakistan gets text ads only, and Indonesia has ads within AI Overviews but not AI Mode. Google says the country list may not be exhaustive.

For India, the detail that matters is language. AI Mode here works in English, Hindi and, since October 2025, seven more Indian languages, from Bengali to Urdu, but ads inside AI Mode answers are listed for English only. Ads above or below AI Overviews run in every country and language where AI Overviews are available.

Which campaigns are eligible for ads in AI Mode?#

You don't create anything new. Google says existing Search, Shopping and Performance Max campaigns take part automatically through the normal auction, with no new campaign or budget. Billing is the same as for standard Search ads (cost-per-click or conversion-based bidding), with no extra charge.

Whether your ad can show depends on how it's matched. Google describes two kinds:

• Direct matching to the person's query, as in a normal search.
• Contextual matching to both the query and the AI response. This covers longer, exploratory questions where the commercial intent shows up in the next steps of the answer rather than in the question itself.

Your match type decides which you can get:

• AI Max for Search, broad match, Shopping and Performance Max are eligible for both direct and contextual matching.
• Exact and phrase match keywords are eligible only when the query shows direct commercial intent. They aren't used for contextual matching on broader questions.

For example, "how should I plan a budget family trip to Kerala in the monsoon" names no product, but the answer may cover houseboats and hotels. An exact match keyword can't be matched to that conversation; a houseboat operator's broad match or AI Max campaign could be. "Book houseboat alleppey" has clear commercial intent, so exact and phrase match keywords can qualify.

What controls do advertisers have?#

Google says you can't target ads only at AI Mode or AI Overviews, and you can't opt out of them separately from Search. If a Search, Shopping or Performance Max campaign serves in an eligible country, it can serve in AI Mode.

What still works:

• Negative keywords keep blocking searches you don't want, including in AI Mode.
• Brand exclusions keep broad match and AI Max away from searches about brands you choose.
• Asset pinning and your other existing account and campaign guardrails still apply.

How is AI Mode ad performance reported?#

Not separately. Google's help page says metrics for ads in AI Overviews and AI Mode are included in aggregate in your standard campaign reports, and the queries that triggered them in aggregate in the search terms report. There's no AI Mode segment, column or filter, and Google hasn't announced one.

Two more things to know:

• Search terms can be approximations. Google's help page on ad group and asset group prioritisation says that for searches on Lens, AI Mode, AI Overviews or autocomplete, the term in your reporting is the best approximation of the person's intent. A long question typed into AI Mode won't necessarily appear word for word.
• Merchant Center insights are on the way. A May 2026 notice in Google's Merchant Center Help says AI performance insights, which show how products are discovered on AI Mode, AI Overviews and the Gemini app, will roll out to the US, Canada, Australia, India and New Zealand in the coming months. It doesn't say whether they cover ads, organic listings or both.

AI Mode ads vs AI Overviews ads vs classic Search ads#

One serving rule from Google's FAQ: on the same search, an ad can appear above an AI Overview and within it, but not within it and immediately below it.

Why is Google adding ads to AI Mode now?#

Revenue. Alphabet's Q3 2026 earnings release, out the same day as the ads announcement, shows Google Search & other revenue of $63.35 billion, up 12% from $56.57 billion a year earlier. According to Search Engine Journal, growth was 19% in Q1 and 17% in Q2, and Q3 was almost flat on Q2's $63.27 billion.

On the earnings call, chief business officer Philipp Schindler named lower monetisation in AI Mode as one reason: AI Mode queries grew strongly but earned less, which held back Search revenue growth. Currency movements were the biggest factor, alongside retail and media spending trends. Google didn't say how much lower AI Mode monetisation is.

Sundar Pichai said in his remarks that AI Mode queries are on average three times longer than traditional searches, and that Google puts the Search experience first and monetisation after it. Longer questions give Google more context to match ads against, hence its push towards contextual matching and AI Max.

Google is also widening who sees these ads. In October 2026 it started testing ads in AI Mode for people who connect apps such as Gmail and Google Photos through Personal Intelligence, which had been ad-free, as Search Engine Roundtable reported. Google's Search Help page on connected apps now says connected-app information may be used to show ads, but ads won't be based directly on your Gmail inbox or Photos library, and advertisers don't get access to them. Google hasn't said which countries the test covers.

Google isn't alone: OpenAI opened self-serve ChatGPT ads in India on 31 August 2026. Our guide on how to advertise on ChatGPT explains how they differ.

How to get your ads eligible for AI Mode in India#

These steps follow Google's recommendations on its help page, applied to an Indian account.

Step 1: Check location and language targeting#

Make sure your campaigns target India and include English in their language settings. Google lists English as the only language for ads within AI Mode, so a campaign that targets only Hindi speakers is unlikely to reach these placements for now.

Step 2: Add AI-powered matching#

In Search campaigns, turn on AI Max for Search with search term matching, or add broad match keywords. Keep exact and phrase keywords for high-intent searches; they still qualify when a question is directly commercial. Shopping and Performance Max campaigns are eligible as they are.

Step 3: Bid on real conversions#

Google recommends pairing AI-powered targeting with Smart Bidding (such as Maximise conversions, Target CPA or Target ROAS) backed by accurate first-party conversion data. Check that your conversion actions record real leads or sales, not page views, and keep budgets flexible on campaigns that perform.

Step 4: Let assets and landing pages adapt#

Turn on text customisation and final URL expansion in AI Max and Performance Max so Google can tailor ad text and pick the best page for a long question. Keep landing pages clear and current; Google says website content also feeds the AI explainers. Pin any asset that must always show.

Step 5: Clean up your Merchant Center feed#

For Shopping ads, Google asks for complete, fresh feeds: descriptive titles, good images, accurate prices in rupees, ratings, and clear shipping and return policies, all matching the landing page.

Step 6: Tighten negatives and brand exclusions#

With no separate opt-out, negative keyword lists and brand exclusions are your main way to keep ads out of irrelevant conversations. Review the search terms report every week or two and add negatives for themes that never convert, such as "free", "jobs" or "DIY".

Quick checklist#

1. Campaigns target India and include English.
2. At least one campaign uses AI Max, broad match, Shopping or Performance Max.
3. Conversion tracking records real leads or sales, and Smart Bidding is on.
4. Your best campaigns aren't limited by budget.
5. Text customisation and final URL expansion are on, or deliberately off.
6. Landing pages show current prices, stock and policies.
7. The Merchant Center feed has no disapproved products.
8. Negative keyword lists and brand exclusions are up to date.
9. You've noted 28 October 2026 to compare performance before and after.

What AI Mode ads mean for SEO and organic visibility#

Google says paid ads don't influence its organic AI responses, and being cited organically doesn't affect ad eligibility. Buying ads won't get your site cited, and being cited won't help your ads.

The bigger change is space. Ads now sit inside the answer, next to organic product list items and source links, and Google says sponsored and organic product list items already get similar click-through rates. On commercial questions, organic listings compete with ads in the same block.

For SEO the work stays the same: be the clearest source for the informational questions AI Mode answers, and keep product pages and feeds accurate so you appear in organic product lists too. If organic clicks from commercial searches drop, widen your traffic sources; our guide on how to increase website traffic covers the main channels.