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AI Search Mode. Less ad space. Tougher competition.

Friday 22nd August 2025

So why are we so excited about Google's new search function? 

The new Google AI Search Mode is about to revolutionise the way we connect with products and services online. It is going to make the consumer’s life a whole lot easier, and the digital advertiser’s a whole lot tougher. 

We think that’s a good thing. 

We are going to have to work harder to resonate with potential customers, and that’s great news for agencies with a passion for creative ideas. 

            

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So what’s about to change? 

Google is reshaping the way search works - and not in a small way. Its new AI Mode, powered by Gemini 2.5, will replace the familiar list of links with an interactive chat-style experience.  

Instead of typing a query, scanning results and clicking through to different sites, a user can ask a question and get a detailed and conversational AI-generated answer. They can then refine or expand that answer in conversation, without ever leaving Google's environment. The result is a search journey that is faster, more personalised and far more contained within Google itself.  

 

Why Google Is Doing This 

AI Mode is part of a wider shift towards keeping users inside platform ecosystems for longer. If Google can provide complete answers, it reduces the need for people to click away to third-party sites. This helps Google capture more engagement, more data and more opportunities to serve ads - but it also means fewer traditional ad placements.  

For advertisers, this is a double-edged sword. AI Mode could make it easier to reach highly relevant users, but competition for visibility will be fierce, and traditional keyword-led strategies will become less effective.  

 

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What do we think the repercussions will be? 

  • Ad inventory will shrink – AI Mode will show fewer ads in each result, so the fight for placement will intensify. 

  • Ads will be embedded in AI answers – They will look and feel more like part of the conversation, so copy and creative must feel relevant to the user’s question.  

  • Search journeys will lengthen – People will spend more time exploring and comparing before making a purchase. Brands will need a stronger mid-funnel presence to stay in consideration. 

  • Intent will matter more than keywords – Campaigns will need to target what users are trying to achieve, not just the phrases they type.  

  • Measurement will evolve – Engagement and relevance will matter more than click-through rate alone.  

 

Advertising will need to be part of the conversation. 

The ability to integrate brands into the discourse will be key,  

We will no longer be talking to ‘cold’ consumers online - tone, relevance and brand values will become more important, as will the ability to capture attention in a smaller window of opportunity.  

This is the territory where creativity has always shone brightest.  

If you find the prospect as exciting as we do, let’s talk.