On October 3rd, Google announced that their long-awaited AI Overview Ads are now live and showing up on mobile phones in the United States.
“AI Overviews in Search help you quickly find information and discover all the web has to offer,” Google said in its blog. “Sometimes you want a quick answer, but don’t have time to piece together all the information you need. We’ve found that people who engage with AI Overviews are more satisfied with their search results, and find ads appearing above and below the overview helpful.”
First announced at Google Marketing Live 2024 in May, the AI Overview ad format has been eagerly awaited by advertisers and consumers alike. Initially only visible to users in the United States, let’s see how these ads will impact mobile advertising in the future.
What are AI Overview Ads?
AI Overview Ads complement the organic AI-generated content by Google Search. They appear directly beneath the primary search result for higher user visibility.
Based on the image provided by Google, AI Overview Ads resemble traditional Shopping ads. Labelled as “Sponsored”, they feature a visually appealing format that showcases products or services relevant to the user’s search query.
They would help people:
- Discover new brands
- Make informed purchasing decisions
When & Where Do AI Overview Ads Appear?
Google has clarified the conditions under which AI Overview Ads will be displayed.
These ads can be positioned:
- Above
- Below
- Within the AI-generated response
To ensure maximum relevance, ads are displayed directly within the AI Overview when they align with both the user’s query and the information provided in the response.
At Google Marketing Live, Google shared a demo of how Search and Shopping ads would appear directly within AI Overviews. Here’s an analogy on their blog:
Imagine this: You’ve just spent the day at the park and now your jeans are covered in grass stains. You turn to Google and ask, “how do I get a grass stain out of jeans?”
AI Overviews provides a number of helpful solutions: using common household products or commercial products like stain removers.
Instead of another search to find the right product, relevant Shopping ads appear right within the AI Overview to quickly find the perfect stain remover.
How to Appear in AI Overview Ads
Advertisers can use their existing campaigns to participate in AI Overview Ads without any additional actions. Google has confirmed that AI-powered Search ads, Shopping campaigns, and Performance Max campaigns are eligible for these ad experiences.
Google also clarified that ads displayed within the AI Overview will be selected from existing search and shopping campaigns that successfully win the auction. This ensures that only highly relevant ads are presented to users and are relevant to both the user’s query and the information provided in the AI Overview.
How Will AI Overview Ads Impact Marketers?
AI Overviews occupy a prime position within Google’s search results. Appearing in these prominent placements can increase the clicks, sales, and revenue for your business.
However, it’s important to note that AI Overview Ads are positioned beneath the AI-generated response, rather than above the organic search results. This placement raises questions about whether it might lead to a lower ROI for advertisers compared to traditional ad placements.
Currently, there’s no way to find out how your AI Overview Ads are performing. Google’s spokesperson told Search Engine Land, “We are currently not offering segmented reporting when ads show above, below or within Search AI Overviews. Advertisers can consult the Search Terms Report, as usual.”
Can advertisers opt out of AI Overviews? Google said, “No. We’ll continue listening to feedback from advertisers and consumers to learn how Ads in AI Overviews can be helpful in people’s information-seeking journeys.”
While Google maintains that users find these ads helpful, the lack of detailed reporting data makes it difficult to assess the actual impact on advertising performance. As more information becomes available, advertisers will be able to evaluate the effectiveness of AI Overview Ads in the future.
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