The Tamesis
Google announced it is rolling out personalized ads for retailers to target shoppers who purchase items through artificial intelligence models.
The advertising pilot, called Direct Offers, will allow advertisers to offer exclusive offers to potential shoppers who are ready to purchase items under AI mode. Brands will be able to select relevant offers they want to display in Google’s Campaign Settings – Google’s Gemini 3 AI model will use contextual information from shoppers’ conversations and what they click to determine when to show relevant offers.
The pilot program is focused on enabling brands to offer discounts to shoppers, but more ad offers will soon be rolled out to “help shoppers prioritize value over price,” such as bundles and free shipping, the company said. For luxury brands, the ability to target potential customers with personalized offers such as new memberships and loyalty programs can be a lucrative top-of-funnel advertising opportunity.
Video: Provided by Shopify
“Google has promoted the most relevant products to match your search terms,” Google said in a blog post announcing the news. “But typically, you’re only ready to buy when you get a deal. Now, relevant retailers also have the opportunity to offer special discounts. This can help you get a better value and help retailers close the sale.”
Google is already piloting the model with Shopify merchants and brands such as Elf Cosmetics, Petco and Samsonite. This model is currently only available to US merchants.
In addition to the new advertising model, Google also launched the “Universal Commerce Agreement (UCP)” co-developed with Shopify, which the two companies said will allow American brands to sell directly under Google’s artificial intelligence model. The feature, which is also available for e-commerce sites that don’t use Shopify, will allow shoppers to research and purchase via integrated checkout without leaving their AI chat room.
Google also announced a third new feature launching on Monday that will allow brands to integrate brand “commerce agents” into Google’s AI-powered searches. Retailers like Poshmark and Reebok are already using the feature to help brands customize how they answer shoppers’ product questions with their brand’s voice.
The past six months have seen a steady stream of announcements surrounding AI tools and integrated checkout—OpenAI was the first major AI platform to announce integrated checkout capabilities into its ChatGPT chatbot in September. The tech companies behind the tools say that by mimicking personal shopping agents, the technology will help match consumers with the products they want faster and more accurately, leading to higher conversion rates and lower returns.
