Google AI Mode's New Ad Formats in 2026: Conversational Discovery, Highlighted Answers and Business Agent for Leads

At Google Marketing Live 2026, Google introduced a new generation of Gemini-powered ad formats built specifically for AI Mode and AI-powered Search - Conversational Discovery ads, Highlighted Answers, AI-powered Shopping ads and a new "Business Agent for Leads" format. This isn't an incremental update to existing Search campaigns; it's Google building an entirely new ad surface for a search experience that increasingly resolves the user's intent without ever sending them to an external website.

Here's the one-paragraph version: AI Mode has crossed 1 billion monthly users with queries more than doubling every quarter, and 92-94% of AI Mode sessions currently end without a click to an external site - meaning a growing share of search intent gets resolved entirely inside Google's own AI experience. The new ad formats are Google's answer to advertisers who'd otherwise lose visibility entirely in that zero-click environment, and getting ahead of them now matters more than most advertisers currently realize.

Why this matters more than a typical ad-format update

Traditional Search ads assume the user clicks through to a landing page. AI Mode's conversational experience often resolves the entire query - comparison, recommendation, even initial purchase intent - inside the chat interface itself, without a click. If your brand's only presence in that experience is via organic content the model happens to cite, you're relying entirely on GEO/AEO signals with no paid lever to reinforce visibility. The new formats give advertisers a direct way back into that surface.

The new formats, and what each is built for

Conversational Discovery ads

Designed to answer a person's specific question directly inside an AI Mode conversation, rather than appearing as a separate, clearly-delineated ad unit - these are built to feel like part of the answer, not an interruption to it.

Highlighted Answers

A format that surfaces a brand's answer prominently within the AI-generated response, functioning similarly to how a featured snippet works in traditional search but inside the conversational interface.

AI-powered Shopping ads

Product-focused ad formats built for AI Mode's shopping-intent queries, where a user might ask a comparative or recommendation-style question rather than a traditional product-search keyword.

Business Agent for Leads

A format aimed at lead-generation queries, letting a business's "agent" respond directly within the AI conversation to capture and qualify interest without requiring the user to leave the interface.

Format	Built for	Closest analog in traditional Search
Conversational Discovery ads	Direct question-answering intent	Responsive search ads
Highlighted Answers	Authoritative, citable brand answers	Featured snippets
AI-powered Shopping ads	Comparative/recommendation shopping queries	Shopping ads / PMax
Business Agent for Leads	Lead capture inside the conversation	Lead form extensions

What advertisers should actually do now

These formats are new enough that best practices are still forming, but the early, sensible moves are clear: ensure your Google Ads account has access to and is testing these formats as they roll out, treat the underlying content quality bar the same way you would for AEO/GEO (clear, structured, quotable answers, since the ad formats appear to reward the same clarity that organic AI citation does), and don't wait for the formats to become fully mature before testing - early adopters typically get more favorable delivery and lower competition before a format becomes crowded.

A worked example: what a lost zero-click moment actually costs

Say a D2C skincare brand ranks well organically for "best vitamin C serum for dark spots" - a strong position by traditional SEO standards. A user asking that same question inside AI Mode may get a fully synthesized answer, comparing several products by category and use case, without ever seeing a list of ranked links to click through. If the brand's product isn't specifically named or highlighted in that synthesized answer, the strong organic ranking is functionally invisible for that specific query - the user's intent was resolved, a decision may have been influenced, and the brand never had a chance to be seen at all, let alone clicked.

A Highlighted Answer or Conversational Discovery ad changes that dynamic - it's a direct mechanism to appear inside that synthesized answer rather than relying entirely on the model's own citation choices. The brand that tests and adopts this early gets a paid lever back into a moment that, for now, is otherwise governed entirely by whatever the model decides to surface organically.

How this connects to the wider AEO/GEO shift

These new ad formats are a direct response to the same zero-click reality that's been driving the AEO/GEO conversation - the difference is that AEO/GEO is about earning organic visibility inside AI answers, while these formats are Google's paid mechanism for the same surface. The two should be run together, not treated as separate strategies: strong organic AEO signals likely inform how favorably these paid formats get evaluated, similar to how Quality Score has always rewarded landing-page and account-level relevance in traditional Search.

How Balistro approaches AI Mode ad formats

Our Google Ads management now includes testing these new AI Mode formats as they become available, paired with the same AEO/GEO content discipline that supports organic AI visibility - since both are ultimately competing for the same conversational search real estate.

FAQ

What is Google AI Mode, and how is it different from AI Overviews?

AI Mode is Google's fully conversational AI search experience, distinct from AI Overviews (which appear above traditional search results) - Google has also built a pipeline letting users jump directly from an AI Overview into a full AI Mode conversation, blurring the line between the two experiences.

Should I pause traditional Search campaigns to focus on AI Mode formats?

No - these formats are new and still maturing, and traditional Search continues to drive substantial traffic and conversions. The sensible approach is testing the new formats alongside existing campaigns, not replacing one with the other prematurely.

Do I need new creative specifically for Conversational Discovery ads?

Early indications suggest these formats reward the same clarity and directness that AEO-optimized content does - a concise, direct answer to the likely underlying question - rather than traditional ad copy built around keywords and calls to action.

How can a business start testing Business Agent for Leads?

Availability is rolling out progressively through Google Ads - checking your account for early access and testing it against a genuine lead-generation campaign is the practical first step once it's available.

The advertisers who test these formats early, before the format matures and gets crowded, are likely to see the most favorable results. If you want help getting ahead of this shift, talk to Balistro. - Naman Khetawat, Balistro