Advertising in AI Mode: A Guide for Kitchener-Waterloo Businesses
Google’s taking an unconventional approach to digital advertising with their new “AI Mode” ads, but it may be the largest innovation we’ve seen yet. If you’re a small business in Kitchener-Waterloo, it’s important that you’re in on what’s to come. Let us show you how your ads can have an upper-hand in the new AI mode.
What is Google’s AI Mode?
This new “AI Mode” is Google’s response to the growing prevalence of AI-generative chatbots like ChatGPT, which has come to be an alternative for search engines like Bing and Google.
For many, searching queries on ChatGPT is more simplified and valuable. It provides all the relevant information you need without having to dive into different web pages and online resources (and sometimes without even having to ask follow-up questions).
Unsurprisingly, Google isn’t ready to fall from their place as the world’s top search engine. They’ve adapted and created a new way of searching – an “AI Mode” that makes it so Google can function exactly like a generative AI chatbot if the user chooses. You can switch it on similar to how you switch on “Image” search or “Map” search.
Google promises that AI mode will provide more “comprehensive” and “nuanced” answers to search queries. It will use what they call a “query fan-out” technique to answer multiple related questions at once (which will likely be questions you’d find in the “People Also Ask” section of a traditional Google search, see image below).
A Shift From “Browsing” to “Conversing”
Users will be able to converse with the AI chatbot to create one continuous conversation, asking questions and getting nuanced, context-heavy answers in return. It’s a blend of a reliable, structured search engine with a conversational and intuitive chatbot. It may change how people engage with information online forever. We might see AI mode be the new “norm” for Google search, instead of the manual search we’re all familiar with.
But What Does This Mean for Google Ads?
This begs the question — how will Google ads be affected by AI mode?
Now, let’s get the obvious question out of the way. Will AI Mode have ads? Yes it will, but the way it functions will be different from what we’ve seen in Google ads before.
AI Mode doesn’t appear like your traditional search. Instead of users seeing a long list of links and sponsored placements at the top of the page, they’re engaging with an AI that summarizes information, answers questions directly, and guides the conversation. So in that case, how will ads be placed, and how can advertisers target their audience?
How Your Google Ads Will Look in AI Mode
Google says that AI Mode ads will be "integrated naturally” into the conversation, but still clearly identified as ads (to follow advertising laws). The way they’ll be integrated is still in the experimentation phase, and will likely change, but here’s what we know now:
Google Ads in AI Mode will appear:
At the bottom of relevant conversations (instead of at the top, like a traditional search)
Within the user’s interactions with the AI
Targeting in AI Mode Ads: A Shift Away From Keywords?
Like most local Kitchener-Waterloo businesses, you’ve probably already been utilizing Google ads to find customers ready to convert and bolster your online presence. The way it currently works is really simple, you add specific keywords or keyphrases (like “Kitchener Autoshop” or “Where to Change Tires in Kitchener”) and whenever someone makes a search with that same phrase, your ad appears at the top! Users can scroll down to see other webpages, but advertisers are typically who show up first.
Google seems to be promoting a shift away from keyword-based targeting — instead pushing users to opt into AI-powered ads similar to their “Smart Bidding” and “AI Max”. This isn’t a promising sign, given Google’s AI Feature’s history of ineffective placements and unnecessary ad spend. We want conversions, not just exposure.
Keywords may be harder to effectively target in a conversational ad context, but advertisers like us want control of when our ads appear and how much of our budget is spent.
What to Expect From Keyword Targeting in AI Mode
In order to adapt our keyword targeting strategy for AI mode, we’ll need to rethink how we analyze keyword intent, accounting for how keywords could come up in a conversation. Kitchener-Waterloo business owners looking to utilize AI mode should expect:
In AI Mode, users are more likely to input full questions and speak conversationally rather than using short keyword strings.
Queries like “What’s the best time to plant a garden in Ontario?” or “Which coffee shops in Kitchener have free Wi-Fi?” would be more effective for AI mode, because they’re conversational and specific, but still intentional.
We’ll need niche, long-tail keywords to suit a more conversational search style, this will ensure keywords aren’t triggered when there’s no/little intent.
Instead of broad, general terms like “auto repair,” focus on specific phrases like “Where can I get my brakes checked near Uptown Waterloo?” or “Where can I get an affordable winter tire change in Kitchener?”
Google’s AI will be more intricate and nuanced than traditional search, meaning it prioritizes the meaning of a query and what value your ad brings to the conversation. It’s no longer just about what specific words you use.
Focus less on exact keyword matches and focus more on providing helpful, thorough, and natural-sounding answers.
Prepare for AI Mode: Let Us Audit Your Ads for Free!
AI mode is on the horizon. In fact, it’s already available for thousands of internet users. It won’t be long until Canadians get full access. More importantly, is your business ready to adapt?
As Kitchener-Waterloo’s local Google ad specialists, we’re already helping our clients adjust their content strategies accordingly.
We’re offering a free audit of your current Google Ads strategy to ensure you're maximizing performance for AI mode ads and future innovations.
