Ads in the Age of AI Summaries: Navigating the New Frontier with ChatGPT, Gemini & Beyond

Where are the Ads in Google’s AI Summaries, Microsoft’s, and AI-Powered Search?

The advertising world is abuzz with anticipation, and a good measure of caution, regarding the integration of ads within the AI-generated summaries and conversational search experiences promised by tech giants like Google and Microsoft. While the transformative potential is widely discussed, the reality as of May 2025 is one of careful experimentation rather than full-scale deployment. Both companies are treading lightly, testing the waters to understand user interaction and advertiser appetite for what could be the next frontier in digital advertising.

The Current State: Experimentation is Key (May 2025)

As it stands, neither Google nor Microsoft has fully launched comprehensive advertising solutions within their mainstream AI-powered search summaries or conversational AI interfaces globally. Instead, the approach is characterised by ongoing experiments and limited rollouts.

Google, for instance, has been observed testing advertisements within its "AI Overviews" (the feature that provides AI-generated summaries at the top of search results). According to reports, these tests are primarily visible to a subset of mobile users in the United States. This initiative serves as a crucial test bed for Google to gather data on how users interact with ads when presented within an AI-driven conversational or summary format. The focus seems to be on understanding user acceptance, ad effectiveness, and the overall impact on the search experience.

Microsoft, while also heavily investing in AI for its Bing search (now often referred to as Copilot in search contexts), has been less public about specific ad integrations within AI summaries, but it's widely assumed that experimentation is also underway given the strategic importance of search monetisation.

Crucially, these AI summary ad formats have not yet been widely observed "in the wild" in regions like Europe, suggesting that any future rollout will be gradual, highly targeted, and likely subject to regional regulatory considerations and user feedback.

What Could "Ads in AI Summaries" Look Like?

Based on current experiments and industry discussions, ads within AI summaries could take several forms, always with the crucial caveat that they must be clearly distinguishable from organic AI-generated content:

• Contextual Sponsored Links: Similar to traditional search ads, but placed within or alongside the AI summary, directly relevant to the user's query.

• Product Carousels or Listings: For commercial queries, AI summaries might be accompanied by scrollable product ads.

• Clearly Labeled "Sponsored" Sections: Distinct blocks of text or rich media clearly identified as advertising.

The Allure: Why Advertisers (and Platforms) are Watching Closely

Despite the cautious rollout, the potential benefits keep advertisers and platforms keenly interested:

• Hyper-Contextual Targeting: Delivering ads precisely when a user is actively seeking related information offers a powerful opportunity for relevance.

• Engaged Audiences: Users interacting with AI for answers are often deeply engaged, potentially making them more receptive to well-matched solutions.

• New Ad Inventory & Monetisation: For platforms like Google and Microsoft, this opens up valuable new advertising real estate, crucial for funding ongoing AI development.

The Hurdles & New CONCERNS: A Cautious Path Forward

The path to integrating ads effectively and ethically within AI summaries is laden with challenges, many of which are now coming into sharper focus:

• User Experience & Trust:

  • Intrusiveness: A primary concern is that AI ads "could feel more intrusive to users" than traditional ad formats, potentially disrupting the flow of an AI conversation or the utility of a summary.

  • Objectivity: Users must trust that the AI's primary summary isn't biased by advertising.

• Advertiser Impact & Metrics:

  • Lower Click-Through Rates (CTRs): If AI summaries provide comprehensive answers, users might have less incentive to click through to websites, staying within the AI conversation or search results page. This could lead to a significant drop in traffic for many businesses.

  • More "0-Click Experiences": AI directly answering queries can lead to users getting what they need without visiting any third-party website. While good for user convenience, it’s a challenge for website-dependent businesses.

  • Shift in Checkout Experiences: There's speculation that platforms like Google might facilitate more on-platform checkouts, further reducing clicks to external shopping sites.

• Cost, ROI, and New Metrics:

  • Possible Premium Pricing: Given the potential for high relevance, ad placements within AI summaries could command premium pricing, leading to higher costs per click (CPCs).

  • Potentially Lower Return on Ad Spend (ROAS): If CTRs are lower and CPCs are higher without a proportional increase in conversion value, ROAS could suffer, at least initially.

  • The Rise of "AI Summary Share": A new key performance indicator may emerge – "AI Summary Share." This metric could represent the percentage of times a brand's ads appear within relevant AI summaries, potentially becoming the new holy grail for advertisers, much like "Absolute Top Search Impression Share" is today. Capturing this prime real estate will be highly competitive.

• Transparency & Disclosure: The need for clear and unambiguous labeling of ads cannot be overstated.

• Data Privacy: Concerns remain about how user conversations and queries will be used for ad targeting and the level of user control over this data.

The Broader Ecosystem: Beyond Google and Microsoft

While search giants are a primary focus, the broader landscape of conversational AI tools like ChatGPT, Gemini (as a standalone app), Perplexity, Grok, and others also face questions about monetisation. Some may opt for subscription models, while others might explore forms of advertising or partnerships, each navigating similar challenges of user experience and trust.

The Long Road Ahead: A Gradual Evolution

It's critical to understand that the integration of ads into AI summaries and AI-powered search is not an overnight revolution but an evolution that will likely take years to fully materialise and stabilise. The current experimental phase, the limited geographic rollout (with no widespread sightings in Europe as of May 2025), and the complexity of the challenges suggest a gradual, iterative approach from tech companies. Rollouts will likely remain highly targeted, with continuous adjustments based on user feedback, advertiser outcomes, and the evolving regulatory landscape.

Conclusion

The question "Where are the ads in AI summaries?" currently has a nuanced answer: they are in a carefully controlled, experimental phase, predominantly in the US and on mobile, with Google leading the visible charge. The advertising industry is watching with bated breath, recognising the immense potential but also the significant risks. Successfully navigating this new frontier will require a delicate balance between innovative monetisation, delivering genuine value to users, ensuring transparency, and providing measurable results for advertisers. The final form and impact of ads within AI-powered search and summaries are still being written, one experiment at a time.