Google has unveiled a new advertising pilot called “direct offers” that will let retailers target shoppers using its AI Mode with personalized promotions. This feature allows brands to present exclusive discounts to potential customers who are actively preparing to make a purchase within the AI interface.

Advertisers can select the offers they wish to feature in Google’s campaign settings. The company’s Gemini 3 AI model will then analyze contextual cues from shoppers’ conversations and click behavior to determine the most relevant moment to display an offer.

Initially focused on discounts, the pilot will soon expand to include other types of promotions—such as product bundles and free shipping—aimed at helping “shoppers prioritize value over price alone.” For luxury brands, this presents a promising opportunity to attract potential customers with tailored incentives like new member or loyalty programs.

“Google already elevates the most relevant products to meet your search criteria,” the company explained in a blog post. “But often, you are only ready to buy if you’re getting a great deal. Now, relevant retailers have an opportunity to also feature a special discount. This helps you get better value and helps the retailer close the sale.”

The pilot is currently being tested with Shopify merchants and brands such as Elf Cosmetics, Petco, and Samsonite, and is only available to U.S. merchants at this time.

Alongside the advertising model, Google also introduced a “Universal Commerce Protocol (UCP),” developed in partnership with Shopify. This protocol will enable U.S. brands to sell directly within Google’s AI Mode. Available even to e-commerce sites not using Shopify, the feature allows shoppers to research and complete purchases through an integrated checkout without leaving their AI chat.

A third feature, launching this Monday, will let brands integrate a branded “business agent” into Google’s AI search. Already adopted by retailers like Poshmark and Reebok, it allows companies to answer shoppers’ product questions in their own brand voice.

These announcements are part of a broader wave of AI shopping tools and integrated checkouts. OpenAI, for example, introduced a checkout feature within ChatGPT in September. Tech companies argue that by acting like a personal shopping assistant, such technology can connect consumers with the right products more quickly and accurately—boosting conversions and reducing returns.

Google’s decision to start with personalized discounts aligns with early data suggesting that deal-seeking is a key motivation for using AI in shopping. In a recent Shopify survey, 64% of consumers said they would use AI for at least one holiday shopping task, with 29% planning to use it to find deals and 20% for inspiration and product discovery.

If Google’s AI can deliver more relevant and affordable options faster than traditional manual searches, these new features are likely to accelerate consumer adoption even further.

Frequently Asked Questions
FAQs Googles Personalized Shopping Ads with AI Mode

BeginnerLevel Questions

1 What are Googles new personalized shopping ads
Googles personalized shopping ads are a feature within its AI Mode tool that automatically tailors ad contentlike images text and product suggestionsto individual users based on their search history location and past online behavior

2 What is AI Mode in this context
AI Mode is a suite of Googles advertising tools that uses artificial intelligence to automate and optimize ad creation bidding and placement Personalized shopping ads are one specific application within this system

3 How are these ads different from regular shopping ads
Regular shopping ads show a standard set of product information Personalized shopping ads dynamically change elements of the ad to be more relevant to you specifically

4 Do I need to do anything to see these ads
No as a shopper you dont need to opt in The personalization happens automatically based on the data Google has from your activity across its services if youre signed into your Google account

5 Whats the main benefit for shoppers
You should see ads that are more useful and relevant to your current interests potentially helping you discover products you actually want or find better deals

Advanced Practical Questions

6 How does Googles AI decide what to show me
The AI analyzes signals like your recent searches websites youve visited your location demographic info youve provided and past interactions with ads to predict what products you might be interested in purchasing

7 As a business owner how do I set up these ads
You set them up through Google Ads Youll need a Merchant Center feed with your product data Within your campaign you can opt into AIpowered features like Optimized Targeting or Responsive Search Ads for Shopping campaigns which enable this level of personalization

8 What are the key benefits for advertisers
Higher Relevance Ads match user intent more closely leading to better clickthrough rates
Improved ROI By targeting likely buyers more effectively you can improve conversion rates and return on ad spend