Google Launches Personalized Shopping Ads Within Its AI Mode Tool

"The advertising pilot, called "direct offers", will enable advertisers to present exclusive offers to potential shoppers who are preparing to buy items within AI Mode. Brands will be able to choose the relevant offers they want to feature within Google's "campaign settings" - Google's Gemini 3 AI model will then use contextual information from shoppers' conversations, and what they've clicked on, to determine when an offer is relevant to display."

""Google already elevates the most relevant products to meet your search criteria," Google said in a blog post announcing the news. "But often, you are only ready to buy if you're getting a great deal. Now, relevant retailers have an opportunity to also feature a special discount. This helps you get better value and helps the retailer close the sale.""

"Alongside the new advertising model, Google also introduced a "Universal Commerce Protocol (UCP)", co-developed with Shopify, which the companies said will allow US-based brands to sell directly within Google's AI Mode. This feature - also available to e-commerce sites that don't use Shopify - will allow shoppers to research and make purchases through an integrated checkout without leaving their AI chats."

Google is piloting 'direct offers' to let retailers present exclusive, personalized discounts to shoppers interacting in AI Mode. Advertisers select offers in campaign settings and Google's Gemini 3 model uses conversation context and click behavior to determine when to display relevant offers. The pilot focuses on discounts initially, with plans to add bundles and free shipping to emphasize value beyond price. Luxury brands can target potential customers with offers like membership and loyalty incentives. The pilot includes Shopify merchants and brands such as Elf Cosmetics, Petco and Samsonite and is currently available to US merchants. Google introduced a Universal Commerce Protocol co-developed with Shopify to enable direct purchases within AI Mode via integrated checkout.

Read at Vogue