Google Tests 'Direct Offers' Ads in Search AI Mode: A New Era for Personalized Advertising

• Google is piloting 'Direct Offers', a new personalized ad format within its Gemini-powered Search AI Mode.
• Unlike traditional sponsored links, Direct Offers appear as discounts directly within conversational search results.
• Ads are displayed only when Google's AI determines a user is close to a purchase decision, aiming for better alignment with user intent.
• Retailers like Petco, e.l.f. Cosmetics, Samsonite, and Rugs USA are participating, with Shopify merchants gaining early access.
• The initiative reflects Google's adaptation to AI-powered search competition and plans to expand beyond just discounts.

Why It Matters: Google is transforming search advertising by integrating personalized 'Direct Offers' directly into AI conversations.