What is Google's AI Mode and Will it Impact PPC?

Google’s AI Mode is a conversational, generative-search experience powered by Gemini that can surface AI-generated overviews. Importantly for advertisers, it can also feature Search/Shopping/Performance Max-style ads inside those AI experiences.

Is AI Mode going to have an impact on PPC? Yes, it changes how some users discover and interact with results, which requires advertisers to adapt strategy and creativity to stay visible and efficient.

What Exactly is Google’s AI Mode?

AI Mode is Google’s new alternative from regular blue links in SERPs to a conversational search experience. It uses large language models (Gemini family) to process information, answer complex questions and let users follow up naturally.

It’s an evolution of the AI Overviews Google has been testing for the past year or so. Ultimately, it’s designed to help users go from discovery – exploration – action without leaving the AI experience.

What does this have to do with PPC? Google is now designing ad placements that appear inside or alongside AI-driven answers, not just above or below classic search results. That’s a big shift.

How Does Google AI Mode Work?

The user asks a conversation-style query. The model gathers and combines relevant content from across the web.
AI generates an overview (with citations, links and follow-up prompts).
Ads can appear as next steps drawn from existing Search, Shopping and Performance Max inventory. This means your current campaigns can show in AI Mode if they meet eligibility and feed/creative quality requirements.

Google still uses signals like landing page relevance, feed data, conversion signals and campaign settings. However, over time, the model will weigh conversational context and intent more heavily than literal keyword matches.

Will AI Mode Kill PPC?

PPC is not dead and won’t die. Google still monetises search. AI Mode is another surface for ads, not a replacement for monetisation. However, it’s important to acknowledge the shape of PPC is shifting:

Where ads appear: Beyond SERP to AI Overviews and AI Mode responses. That creates new inventory and new creative constraints.
Which campaigns are eligible: Search, Shopping, Performance Max and “AI-first” campaign types are being prioritised for AI Mode placements. If you rely only on tightly manual keyword match campaigns, you may miss exposure.
User intent is richer: Conversations mean Google can infer layered intent. Ads that provide clear, helpful next actions will win clicks and conversions.

PPC survives, but the skills and inputs advertisers must master change. Creative, product feed hygiene, first-party data and flexible bidding/signals become more important. Curious whether your campaigns are ready for AI-driven search? We can tell you in one quick audit.

Practical Impact on PPC Campaigns

Area	What changes	Why it matters
Ad creative	Need clearer next-step CTAs and conversational-friendly copy (short answers + links).	AI Mode surfaces answers. Users click CTAs, not just headlines.
Campaign types	Performance Max / Shopping / AI-enabled Search get priority.	These campaign types feed Google with multi-asset inputs the model can reuse.
Feeds & product data	Feed hygiene, titles, images, stock and structured data must be impeccable.	AI responses often use product metadata. Wrong data = missed opportunities.
Targeting & signals	First-party data, audience signals and conversion values are critical.	Models rely on richer inputs to match conversational intent.
Measurement	New metrics & reporting (AI-sourced impressions/clicks) emerging.	Track performance separately for AI Mode to understand true ROI.

Note: Some reporting tools and Search Console features for AI traffic are still being introduced; stay tuned to Google’s updates.

Quick Win Checklist for PPC Advertisers

Audit feeds & structured data (titles, pricing, availability).
Shift to multi-asset campaigns (Performance Max with strong creatives + audience signals).
Create conversational ad copy and micro-conversions (FAQ snippets, short answers/CTAs).
Prioritise first-party data (CRM uploads, customer match, offline conversions).
Improve landing page clarity – include clear product details, structured FAQ and authoritative signals (reviews, schema).
Tag and track AI-origin traffic in Analytics/Search Console where possible.

Your competitors are adapting to AI Mode. Are you? Let’s make sure you don’t get left behind.

Content and SEO Matter! You Still Need Great Pages

AI Mode gathers and outputs content, but where does it source it from? The web. High-quality, commercial-intent content (clear answers, authoritative depth, structured data) increases the chance of being cited or linked in AI responses.

That means your SEO and on-page content strategy matters more than ever, not less.

Focus on: schema, FAQ blocks, concise answer paragraphs and product pages that satisfy purchase intent.

At Pod, We’re Opportunistic, Not Fearful. Adopt our Perspective

At Pod Digital, we see Google’s AI Mode not as a threat, but as a breakthrough opportunity. It’s changing how users search, shop and interact, but it’s also unlocking powerful new ways to connect with your audience.

Our team is already helping businesses make that shift and aligning SEO and PPC strategies to perform seamlessly within Google’s evolving AI ecosystem.

If you’re ready to future-proof your marketing and turn AI Mode into a competitive advantage, get in touch with Pod Digital today. Let’s make sure your business is the one that shows up and stands out when Google’s AI makes its next move.