Ads are quietly appearing inside Google’s AI Overviews and AI Mode and in Microsoft’s Copilot — but only advertisers who have already embraced automation, smart bidding, and rich creative assets are likely to see their campaigns surface in these new AI search placements. (support.google.com)
AI-driven search experiences are changing where and how users discover information — and where advertisers can be discovered. Google’s AI Overviews (the concise, generative summaries that appear atop many search results) and AI Mode (the conversational tab that surfaces longer, exploratory AI responses) now serve paid content pulled from existing Search, Shopping and Performance Max inventory. Microsoft’s Copilot likewise incorporates advertising from Performance Max-style and multimedia/product ad assets into conversational search sessions. Both platforms rely on existing campaigns and signals rather than separate “Copilot-only” or “AI-mode-only” ad buys. (support.google.com, about.ads.microsoft.com)
This movement isn’t theoretical — it’s live and expanding. Google has published guidance on how ads are eligible for AI Overviews and the new AI Mode experiments, and Microsoft has been explicit that assets from Performance Max, Multimedia, Product and Search campaigns feed Copilot placements. Early industry reporting and partner documentation confirm that these ad units are being tested and rolled out across desktop and mobile in English-language markets and beyond. (support.google.com, about.ads.microsoft.com)
Key takeaways for Google eligibility:
Source: JumpFly How to Show Ads in Google AI Overviews/AI Mode and Microsoft Copilot
AI-driven search experiences are changing where and how users discover information — and where advertisers can be discovered. Google’s AI Overviews (the concise, generative summaries that appear atop many search results) and AI Mode (the conversational tab that surfaces longer, exploratory AI responses) now serve paid content pulled from existing Search, Shopping and Performance Max inventory. Microsoft’s Copilot likewise incorporates advertising from Performance Max-style and multimedia/product ad assets into conversational search sessions. Both platforms rely on existing campaigns and signals rather than separate “Copilot-only” or “AI-mode-only” ad buys. (support.google.com, about.ads.microsoft.com)This movement isn’t theoretical — it’s live and expanding. Google has published guidance on how ads are eligible for AI Overviews and the new AI Mode experiments, and Microsoft has been explicit that assets from Performance Max, Multimedia, Product and Search campaigns feed Copilot placements. Early industry reporting and partner documentation confirm that these ad units are being tested and rolled out across desktop and mobile in English-language markets and beyond. (support.google.com, about.ads.microsoft.com)
How the platforms decide which ads to show
Google: AI Overviews and AI Mode (what the platform requires)
Google now surfaces ads above, below, or inside AI Overviews. Ads that appear inside an AI Overview are currently limited to English in the U.S. on desktop and mobile, with expansion planned. Importantly, ads shown inside the AI Overview must come from existing Search, Shopping or Performance Max campaigns — you cannot target the AI Overview placement directly. Google makes eligibility conditional on two things:- the system detecting commercial intent in the query + AI Overview; and
- the ad inventory being relevant to both the user query and the AI Overview content.
Key takeaways for Google eligibility:
- Run Search, Performance Max, or Shopping campaigns.
- Use broad match or enable AI Max for Search/keywordless targeting.
- Use smart bidding (Max Conversions, Max Conversion Value, tCPA, tROAS).
- Keep product feeds, images and landing pages polished and conversion-ready.
- Expect limited reporting — placements are reported as “Top Ads” and aren’t yet broken out by in-AI vs above/below positions. (support.google.com)
Microsoft: Copilot (how ads are selected and what works)
Microsoft’s play is more asset-driven: Copilot draws from existing advertising assets in the Microsoft Advertising ecosystem. Microsoft explicitly names these formats as high-probability candidates for Copilot appearances:- Performance Max (Microsoft’s auto-assembly, multi-channel campaign format),
- Multimedia ads (rich creative units),
- Product ads (Shopping/product feed units),
- Search ads (DSAs, RSAs when combined with automated extensions and PMax),
- Vertical ads (e.g., Property Promotion, Tours & Activities).
Why broad intent and smart bidding matter
AI search surfaces complex, exploratory queries where the user is often still in discovery mode. These are not classic high-intent, transactional keyword searches. Both platforms therefore favor approaches that capture intent inside varied phrasing and long-form queries:- Broad match / AI Max: allows an ad system to match ads to semantically similar or intent-equivalent queries you didn’t explicitly list. This is essential because AI Overviews and conversational search often paraphrase or reframe user questions in ways that strict match types would miss. Google’s AI Max unifies keywordless matching, text customization, and final-URL expansion to extend reach into those exploratory queries. (blog.google, searchenginejournal.com)
- Smart bidding: auction-time bidding using many contextual signals (device, location, time, audience signals) helps algorithms bid efficiently on these varied intent signals. Google requires smart bidding for AI Max features; Microsoft strongly recommends automated bidding for best Copilot coverage and performance. (support.google.com, about.ads.microsoft.com)
- Rich assets and feeds: AI surfaces product images, carousel-like units, or multimedia snippets. High-quality images, videos and well-maintained shopping feeds increase the chance that your assets will be used and displayed inside AI-powered responses. (support.google.com, about.ads.microsoft.com)
Practical checklist: how to prepare existing campaigns (step-by-step)
- Audit your campaign types
- Confirm you have at least one of: Search, Performance Max, Shopping (Google) or Performance Max/Multimedia/Product/Search (Microsoft).
- Turn on or test AI Max / broad match
- For Google Search campaigns, enable AI Max for Search or campaign-level broad match where appropriate; ensure smart bidding is active.
- Move to smart bidding (if not already)
- Prioritize Max Conversions, Max Conversion Value, tCPA, or tROAS depending on goals — these are supported by AI Max and favored by both platforms.
- Improve creative and feed quality
- Refresh product images, add videos where possible, ensure accurate shipping/returns/pricing in feed.
- For Microsoft, provide logo images and brand assets (some Copilot placements use logos or business extensions).
- Expand landing-page intent coverage
- Add helpful, intent-aligned content to product and blog pages so AI-driven summaries can point users to pages that both inform and convert.
- Maintain negative keywords and brand controls
- Negative keywords still apply — use them to protect spend from irrelevant AI matches. For Google AI Max, use brand inclusions/exclusions and URL controls as needed.
- Use asset groups and robust RSAs / multimedia assets
- Provide multiple headlines, descriptions, images and videos so automated assemblers (PMax / Copilot tools) have high-quality options to construct the shown result.
- Monitor signal-level reports
- Use Search Terms reports, Performance Max asset reports, and Microsoft’s Search Term Insights to infer AI placement behavior because dedicated “AI Overview” or “Copilot” placement breakdowns are limited or not yet available. (support.google.com, about.ads.microsoft.com)
Best-practice campaign settings and recommended KPIs
Campaign settings
- Google Search: enable AI Max for Search, use smart bidding, allow final URL expansion selectively, and keep negative keyword lists current. (blog.google)
- Performance Max (both platforms): feed strong asset groups (images, video, logos), supply conversion goals and audience signals, and use brand exclusions where needed. (about.ads.microsoft.com)
- Shopping: ensure feed freshness and high-quality images/videos; use Merchant Center best practices.
- Microsoft copilot workflows: use Copilot in the Microsoft Advertising builder to generate or refine creative; opt into performance features for Video/Display where appropriate. (about.ads.microsoft.com)
KPIs to watch
- Conversion volume and conversion rate: AI-driven journeys can shift click quality; watch downstream conversions rather than just CTR.
- Cost per conversion (CPA) and ROAS: automation can change funnels; evaluate profitability, not just traffic.
- Search terms and asset performance: inspect search term insights and asset-wise performance to understand what queries and creatives the AI is matching.
- Page engagement: bounce rate, time-on-page and micro-conversions help detect if AI-surfaced queries are producing low-intent traffic.
Reporting and measurement — current limitations and workarounds
Both Google and Microsoft are still evolving placement-level reporting for AI-driven experiences. Google currently reports AI Overview impressions as part of Top Ads and does not provide a separate in-AI Overview impression column in standard reporting. Microsoft likewise does not yet have a clearly labeled “Copilot” placement report that isolates only Copilot impressions, though it offers Performance Max insights and Search Term Insights to deduce how conversational placements behave. Expect incremental reporting improvements, but be prepared to:- infer AI placement impact using changes in CTR, conversion rate, and search-term composition,
- use placement / asset-level reporting (Performance Max asset reports, search term reports) to detect activity tied to AI queries,
- implement server-side tracking or first-party measurement to better associate conversions with AI-driven journeys. (support.google.com, about.ads.microsoft.com)
Creative and landing-page guidance for AI placements
AI Overviews and Copilot emphasize helpful, context-rich answers. Ads that complement that experience — not interrupt it — perform best.- Landing pages should be informational and transactional: include concise how-to info, product details, and a visible call-to-action.
- Use high-quality images (multiple angles), short product videos where possible, and structured data (schema) to help AI understand your content.
- For informational pages (blogs, guides), add clear conversion pathways (shop widgets, “compare products” CTAs) because these pages are now showing up as referral targets even from informational AI summaries.
- For retailers, verify Merchant Center feed completeness and add multiple image types and promotional tags to improve the likelihood of product units being chosen for AI responses. (support.google.com, about.ads.microsoft.com)
Testing framework: how to validate AI placements in your account
- Identify high-AI-intent queries in your Search Terms report (informational / multi-part queries).
- Add controlled budget to Performance Max/Shopping and AI Max-enabled Search campaigns.
- Create two cohorts:
- Cohort A: PMax + rich asset group + smart bidding.
- Cohort B: Traditional search-only with exact-match focus.
- Run for 2–6 weeks, monitor conversions, conversion rate, CPA and search term variety.
- Use page-level UTM tagging and server-side event tracking to compare post-click quality for traffic suspected to be AI-driven.
- If available, use platform-specific diagnostic reports (Performance Snapshot, Search Term Insights) to refine asset groups and audience signals. (about.ads.microsoft.com, support.google.com)
Strengths, risks and what advertisers should watch for
Strengths
- Early monetization of AI search creates high-visibility placements at the moment of discovery.
- Automation (AI Max, PMax, Copilot-assisted builders) reduces setup friction and can expand reach into long-tail intent queries.
- Rich assets (images, video, product data) are rewarded, giving brands with strong creative libraries an advantage. (support.google.com, about.ads.microsoft.com)
Risks and limitations
- Reporting opacity: lack of dedicated placement-level breakdown means attribution and ROI analysis are harder.
- Potential for lower-quality clicks: ads shown in informational contexts can generate visits that don’t convert unless the landing experience matches the AI-supplied expectation.
- Less control: AI Max and PMax relinquish targeting and copy control to the platform, which can be uncomfortable for highly regulated verticals or campaigns that require strict messaging.
- Dependence on assets and feeds: advertisers without good images, videos, or product feeds will be disadvantaged in Copilot and AI Overviews.
- Vendor-provided uplift claims: treat vendor numbers as directional; run your own A/Bs. (support.google.com)
Recommended immediate actions for advertisers
- Enable Smart Bidding on viable campaigns and ensure conversion tracking is robust.
- For Google Search campaigns, trial AI Max for Search with cautious opt-outs (text customization or final URL expansion) if you need tighter control.
- Prioritize cleaning and enriching Shopping feeds and merchant assets.
- Build out image and video libraries, and add brand/logo assets for Microsoft campaigns.
- Use Performance Max where you can supply many creative assets; PMax is the most likely path to Copilot and AI-assembled placements.
- Run controlled experiments and track downstream conversion quality, not just raw traffic. (blog.google, about.ads.microsoft.com)
Where this is headed
AI-powered search placements are still evolving. Platform vendors (Google and Microsoft) are actively iterating on reporting, placement logic, and asset requirements. Expect:- incremental reporting improvements that will eventually give advertisers more clarity into in-AI vs standard placements;
- broader rollout of AI Overviews and AI Mode to new languages and markets;
- deeper integration of shopping and multimedia units into conversational results; and
- continued pressure to adopt automation and richer creative to remain eligible and competitive.
Conclusion
Ads are already appearing inside Google’s AI Overviews / AI Mode and within Microsoft’s Copilot — but only for advertisers who have aligned their campaigns with the platforms’ automation and asset-driven requirements. The recipe for eligibility and competitive performance is clear: adopt smart bidding, broaden intent coverage (broad match or AI Max), and supply rich, conversion-oriented assets (images, video, clean feeds and intent-aligned landing pages). Reporting remains a pain point and platform-provided uplift figures should be validated through your own tests, but the strategic implication is the same: adapt your campaigns now so they’re eligible for AI placements as those placements expand and monetize at scale. (support.google.com, about.ads.microsoft.com)Source: JumpFly How to Show Ads in Google AI Overviews/AI Mode and Microsoft Copilot