BlogMarketing & AI Search2 min read

Can Local Businesses Advertise in Google AI Overviews and AI Mode?

By Mahlon L., Director of Batch Marketing

The short answer

Partly. In the US, Google shows ads above, below and inside AI Overviews, drawn from existing Search, Shopping and Performance Max campaigns, and it relies on broad match or keywordless AI targeting to match ads inside them. Ads are not shown inside AI Overviews for sensitive categories such as finance and healthcare. In AI Mode, Google is still testing new ad formats.

Where Can Ads Appear Around AI Overviews?

In two places: around the AI Overview and inside it. Google Ads Help says ads "are eligible to show above or below the AI Overview in all 200+ markets where AI Overviews are available," following the normal auction.

Ads inside the AI Overview are narrower. Google says they are available in English on mobile and desktop in a list of countries that includes the US, and that both the search and the content of the AI Overview are considered when serving them.

Which Campaigns Can Show Inside AI Overviews?

Text and Shopping ads from existing Search, Shopping and Performance Max campaigns. There is no separate AI Overview campaign to build.

Matching is the catch. Google says it requires "AI-powered targeting solutions like broad match on Search or the keywordless targeting technology available through AI Max for Search campaigns, Performance Max campaigns, Shopping campaigns, or Dynamic Search Ads." Google explains why: AI Overviews show on complex, answer-seeking searches that advertisers are less likely to target with keywords.

Which Businesses Are Left Out?

Sensitive categories. Google says it does not currently "show ads in AI Overviews for sensitive verticals like adult, alcohol, gambling, finance, healthcare, politics, and more." A dental practice, a med spa or a lender should not plan on ads inside the AI Overview. Ads above and below it still follow the normal auction.

For those businesses, the way into the answer itself is organic: being one of the sources Google's AI cites. See how to show up in Google AI Overviews and what GEO is.

What About Ads in AI Mode?

Google is testing. In May 2026 it announced two ad types for AI Mode built with Gemini: Conversational Discovery ads, which answer a specific question, and Highlighted Answers, where "highly relevant, high-quality ads are eligible to appear" on a list of recommendations. Google says it will keep testing the formats.

Its advice for being ready is the same foundation: "build a strong foundation with AI Max for Search, AI Max for Shopping campaigns and Performance Max."

What Should a Local Business Do Now?

Run both lanes. On the paid side, a Search campaign limited to exact and phrase match keywords is not the route into AI Overviews. Broad match or AI Max, with conversion tracking good enough for smart bidding, is. On the organic side, a business earns citations with clear answers, accurate listings and reviews.

Batch Marketing runs Google Ads alongside SEO, AEO and GEO, so both lanes are planned together. Compare the two in Google Ads vs SEO.

Commonly Asked Questions

Can I buy an ad that only shows inside AI Overviews?

Google does not describe a separate AI Overview placement. Ads inside AI Overviews come from existing Search, Shopping and Performance Max campaigns that win the auction and match both the search and the AI Overview content.

Can healthcare and finance businesses advertise in AI Overviews?

Not inside them. Google says it currently does not show ads in AI Overviews for sensitive verticals including finance and healthcare. Ads above and below the AI Overview follow the normal auction.

Are ads in Google AI Mode available?

Google is testing them. In May 2026 it announced Conversational Discovery ads and Highlighted Answers for AI Mode, built with Gemini, and said it will keep testing them.

Do exact match keywords show ads inside AI Overviews?

Google says it requires AI-powered targeting, such as broad match or the keywordless targeting in AI Max, Performance Max, Shopping or Dynamic Search Ads, to match ads inside AI Overviews.

Sources

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