Discussion AI Advertising Paid Strategy

Will AI search have ads? How should we prepare our paid strategy for AI advertising?

PA
PaidMedia_Director · Paid Media Director
· · 78 upvotes · 9 comments
PD
PaidMedia_Director
Paid Media Director · January 9, 2026

I’m trying to get ahead of the AI advertising curve.

What I’m seeing:

  • Google putting ads in AI Overviews
  • Microsoft Copilot showing sponsored content
  • Perplexity experimenting with placements
  • ChatGPT doing commerce integrations

My questions:

  1. Is AI search advertising real or still experimental?
  2. How will it work differently than traditional PPC?
  3. How should we be preparing now?
  4. What budget should we allocate to test?

My concern: We were late to social ads, late to programmatic. Don’t want to be late again.

Looking for practical preparation strategies.

9 comments

9 Comments

AE
AIAds_Expert Expert AI Advertising Specialist · January 9, 2026

AI advertising is real and accelerating. Here’s the current landscape:

What’s live now:

PlatformAd TypeStatusAccess
Google AI OverviewsSearch/Shopping adsLiveThrough Google Ads
Microsoft CopilotResponsive search adsLiveThrough Microsoft Ads
PerplexitySponsored contentLimited betaInvite-only
ChatGPTCommerce integrationsEmergingPartnership-based

How it differs from traditional PPC:

Traditional PPCAI Search Ads
Keyword matchingSemantic understanding
Above resultsWithin answers
User chooses to clickIntegrated recommendation
Cost per clickVaries (CPC, CPM, commission)
Campaign-basedContext-based

Early performance data:

Microsoft reports:

  • 69% higher CTR than traditional search
  • 76% higher conversion rate

Why? Users get context from AI answer, making clicks more qualified.

The opportunity:

AI ads reach users at high-intent moments with contextual relevance. Early movers gain learning advantage before market saturates.

PD
PaidMedia_Director OP · January 9, 2026
Replying to AIAds_Expert
69% higher CTR is compelling. But how do we actually access these placements? Is there a separate platform?
AE
AIAds_Expert Expert · January 9, 2026
Replying to PaidMedia_Director

Currently, AI ad access is through existing platforms with specific tactics:

Google AI Overview ads:

Access through: Google Ads How to enable:

  1. Enable Performance Max campaigns
  2. Ensure Shopping feeds are comprehensive
  3. Ads automatically eligible for AI Overview placement

No separate bidding. Google’s AI decides when to show your ads in AI Overviews based on relevance.

Microsoft Copilot ads:

Access through: Microsoft Advertising How to enable:

  1. Standard responsive search ads
  2. Enable Copilot placements in campaign settings
  3. Ads appear contextually in Copilot responses

Perplexity ads:

Access: Currently invite-only / enterprise Format: Sponsored questions, follow-up suggestions Status: Limited beta with select advertisers

ChatGPT commerce:

Access: Partnership-based (Shopify integration) Format: Product recommendations in responses Status: Emerging, primarily e-commerce

Strategy recommendation:

  1. Optimize Performance Max campaigns now
  2. Ensure Microsoft Advertising presence
  3. Request Perplexity beta access
  4. Watch for ChatGPT ad announcements
EA
Ecommerce_Advertiser E-commerce Marketing Director · January 9, 2026

E-commerce perspective - we’re already testing AI ads:

Our experience with Performance Max in AI Overviews:

When users search product questions, our Shopping ads now appear within AI-generated answers. Example:

User asks: “Best wireless earbuds under $200” AI Overview: Compares features, mentions specifications Our ad: Appears showing our product with price, rating, image

Results vs. traditional Shopping:

MetricTraditional ShoppingAI Overview Placement
CTR2.1%3.4%
Conversion rate3.8%5.2%
CPC$0.85$1.12
ROAS4.2x5.8x

Key learning:

Higher CPC, but better conversion. Users are more qualified after reading AI context.

What we changed:

  1. Product feed optimization - Comprehensive descriptions for AI context
  2. Negative keywords updated - Exclude non-purchase intent queries
  3. Landing page alignment - Match AI Overview context

The shift:

AI ads feel less like ads and more like recommendations. Users trust them more (for now).

FA
FutureStrategy_Analyst · January 8, 2026

Where this is heading (projections):

Market growth projections:

YearAI Search Ad Spend
2025$8B
2026$12B
2027$18B
2029$25B+

Expected evolution:

Phase 1 (Now): Integration into existing platforms

  • Google Ads → AI Overview placements
  • Microsoft Ads → Copilot placements
  • Early experimentation

Phase 2 (2026-2027): Dedicated AI ad products

  • Platform-specific AI ad formats
  • New targeting options
  • Measurement frameworks

Phase 3 (2028+): AI-first advertising

  • Semantic targeting standard
  • Conversational ad experiences
  • Integrated commerce

What advertisers should prepare:

  1. Product data richness - AI needs comprehensive info to recommend
  2. Semantic readiness - Think beyond keywords
  3. Measurement evolution - Track AI attribution
  4. Budget flexibility - Ready to shift allocation

The retailers’ perspective:

AI advertising is becoming more like retail media (Amazon Ads) than traditional search ads. It’s about being the recommended choice, not the top result.

SM
SearchVeteran_Mike Expert · January 8, 2026

Veteran search marketer perspective:

What feels familiar:

  • New ad format launches (we’ve done this before)
  • Early adopter advantages (like mobile, shopping)
  • Performance measurement challenges
  • Platform-controlled placements

What’s genuinely different:

  1. Intent interpretation vs. keyword matching

    • Can’t just bid on keywords
    • AI interprets user meaning
    • Semantic targeting required

  2. Native integration vs. separate ads

    • Ads feel like recommendations
    • Trust transfer from AI to advertiser
    • Transparency concerns

  3. Conversational context

    • Multi-turn interactions
    • Follow-up ad opportunities
    • Different user journey

My preparation advice:

Do now:

  • Master Performance Max (Google’s AI-first)
  • Optimize product/service data feeds
  • Build organic AI visibility (context for ads)
  • Test Microsoft Copilot placements

Prepare for:

  • Semantic targeting strategies
  • Conversational ad copy
  • New measurement frameworks
  • Budget reallocation planning

Don’t:

  • Panic and shift all budget
  • Ignore traditional PPC (still works)
  • Wait until “it’s ready” (learning starts now)
PD
PaidMedia_Director OP Paid Media Director · January 8, 2026

This gives me a clear preparation roadmap. Here’s my plan:

Immediate actions (This quarter):

  1. Performance Max audit

    • Review current campaigns
    • Ensure AI Overview eligibility
    • Optimize product feeds

  2. Microsoft Advertising expansion

    • Enable Copilot placements
    • Test responsive search ads
    • Build presence before competition

  3. Measurement baseline

    • Track current AI referral traffic
    • Document traditional PPC benchmarks
    • Set up comparison framework

Near-term (Next 2 quarters):

  1. Budget allocation

    • Reserve 10-15% for AI ad testing
    • Monitor performance vs. traditional
    • Adjust based on results

  2. Perplexity beta

    • Request access
    • Prepare for sponsored content
    • Define test parameters

  3. Organic + Paid integration

    • GEO investment (context for ads)
    • Unified brand presence strategy

What I’m NOT doing:

  • Abandoning proven PPC
  • Waiting until “perfect” AI ad products
  • Betting everything on one platform

The mindset:

AI ads are evolution, not revolution. Apply search advertising principles while adapting to new context. Early learning > perfect strategy.

Budget allocation plan:

ChannelCurrent6 months12 months
Traditional Search65%55%45%
Performance Max (AI)20%30%35%
Social15%15%15%
AI Platform Testing0%5%5%

Gradual shift based on performance data, not hype.

Thanks for the strategic clarity!

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Frequently Asked Questions

Will AI search have advertising?
Yes, it’s already happening. Google AI Overviews show ads above and below summaries. Microsoft Copilot places ads at bottom of answers. Perplexity has launched sponsored content. ChatGPT is integrating commerce partnerships. AI search advertising is projected to reach $25 billion by 2029.
How do AI search ads differ from traditional search ads?
AI search ads are integrated into conversational answers rather than displayed alongside results. They use semantic understanding rather than keyword matching. Early data shows AI ads achieve 69% higher CTR and 76% higher conversion than traditional search ads.
How should advertisers prepare for AI search ads?
Build organic AI visibility first (ads need context). Ensure product data feeds are comprehensive. Experiment with early AI ad placements. Monitor Performance Max for AI Overview integration. Expect semantic targeting to replace keyword-based targeting.
Will AI advertising replace traditional PPC?
Not replace - transform. Traditional high-intent PPC remains valuable. AI advertising adds new placements and targeting models. Expect hybrid approaches: PPC for conversion, AI ads for discovery. Budget allocation will shift gradually.

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