Google Search Generative Experience integrates Search, Shopping ads

On the heels of the AI-powered enhancements announced at Google I/O earlier this month, Google gave advertisers a slightly more precise picture of the ads plans within SGE today at Google Marketing Live 2023:

Google is experimenting with directly integrating Search and Shopping ads within the AI snapshot and conversational mode.

There will also be the experimentation of newer native formats that leverage generative AI for ad creation customized to the user journey.

How it looks. Just two weeks ago at Google I/O we saw ad units living above the SGE experience in a different colored section that was clearly labeled “Sponsored.” The new ads will have a bold “Sponsored” identifier but are mixed in with the results provided in the conversational chat.

For example (cover your eyes SEOs), Google displays a sponsored listing as the top result for a conversational query of [hiking backpack for kids]:

Google has yet to reveal any SGE ad metrics data (e.g., CTR) because it is still an experiment. Additionally, being in such an early stage, there is no way to opt in or out of ads showing in SGE.

Why we care. This move will likely please advertisers while simultaneously upsetting those seeking more organic traffic. The implementation at Google I/O seemed slightly disjointed, with the ad results up and away from the chat. Still, we are starting to see a fuller picture of not only what SGE will be and how Google can monetize it by bringing ads into the chat in a native fashion.