If you run Google Ads in Australia, something big just changed.
At the end of October, Google announced it was bringing ads into AI Mode, its chat-style search, for Australian users. Australia was one of ten new markets in the rollout, alongside Canada, New Zealand, India and Singapore.
This matters because the way people search is changing. Instead of typing a few keywords and scrolling through links, more people are asking Google detailed questions and reading an AI-written answer. Now your ads can appear right inside that answer.
What Is AI Mode?
AI Mode is Google's conversational search experience. It launched in Australia in October 2025. Someone asks a longer, more detailed question, such as "What's the best physio clinic near Strathpine for a running injury that's open on Saturdays?", and Google's AI writes an answer with links to sources.
These queries look very different from traditional searches. Google says AI Mode queries are around three times longer on average, which means people are giving far more detail about what they need.
How Ads Show Up in AI Mode
When a question has commercial intent, Google can now place paid results within or alongside the AI's answer. These ads are labelled "Sponsored" so people can tell them apart from the AI-generated content.
Google says the ads don't influence what the AI writes in the answer itself. You're paying for a placement next to the answer, not to change what the answer says.
Which Campaigns Are Eligible?
You don't need to set up a new campaign type or a separate budget. To be eligible for AI Mode placements, you need at least one of the following:
- Search with broad match: a Search campaign using broad match (or AI Max for Search)
- Performance Max: any Performance Max campaign
- Shopping: any Shopping campaign
If your account only runs exact and phrase match Search campaigns, you're unlikely to show up in AI Mode at all. That's because the conversational questions people ask in AI Mode rarely match a tight keyword list.
AI Mode ads go through the same auction and bidding as standard Search ads, and Google says there's no extra charge to take part. The catch is that you can't target AI Mode on its own, and you can't opt out of it separately from Search. If your campaign is eligible, it's in.
The Change to Your Search Terms Report
This is the part many advertisers will miss.
In AI Mode, a person might have a back-and-forth conversation with the AI before an ad is shown. Google doesn't show you that whole conversation in your search terms report. Instead, it simplifies it down to a single query, question or phrase.
That has a few knock-on effects:
- You see less of the real context: the simplified term may not reflect what the person actually asked or how specific their needs were.
- Negative keywords get harder to manage: it's more difficult to spot irrelevant traffic when you can't see the full conversation that triggered your ad.
- Reporting needs a closer look: trends in your search terms may shift as AI Mode traffic grows, even if your campaigns haven't changed.
What You Should Do Now
- Check your campaign types. Confirm whether you're running broad match Search, Performance Max or Shopping, and decide whether you want to be eligible for AI Mode.
- Review your broad match settings. Make sure your bidding strategy, conversion tracking and negative keyword lists are strong enough to keep broad match on track.
- Tighten your landing pages and ad assets. AI Mode questions are detailed, so your ads and landing pages need to answer specific needs clearly.
- Watch your search terms report closely. Look for new patterns in longer, question-style terms, and update your negatives as you go.
- Measure on conversions, not clicks. With less visibility into the conversation, focus on lead quality and revenue to judge whether this placement is working for you.
AI Mode was one of five changes we covered in the marketing changes from the last two weeks. If you want the other four, start there.
Not Sure How Your Ads Are Showing in AI Mode?
AI Mode is a new placement and it's changing quickly. If you're not sure whether your campaigns are eligible, or how AI Mode traffic is affecting your results, we can take a look.
Send me a message or book a call, or call 1300 848 221. You can also read more about our Google Ads management.
