Google details 2026 ads strategy centered on AI-powered search and commerce

Vidhya Srinivasan, Vice President and General Manager of Ads & Commerce at Google, outlined the company's advertising and commerce priorities for 2026 in her third annual letter, focusing on the growing role of AI in shopping and marketing.

Srinivasan said traditional trade-offs between speed and certainty in purchasing decisions are diminishing as AI tools become more integrated into search and shopping experiences.

She said, “Consumers are continuing to search, scroll, stream and shop, and now, AI is proving that speed and certainty can go hand in hand. It’s an expansionary moment for businesses and consumers alike that requires a new playbook.”

The company is working to make commercial experiences more “fluid, assistive and personal” in 2026.

On YouTube, the platform’s creators play a central role in influencing purchasing decisions. The company plans to expand tools that connect brands with creators, including AI systems designed to match advertisers with relevant creator communities.

In Search, user behaviour is shifting beyond keyword queries to more conversational and visual inputs. The company is testing new advertising formats within AI-powered search features, including 'AI Mode,' where sponsored listings are integrated into responses and clearly labelled.

The company is also introducing ‘Direct Offers,’ a feature in AI Mode that allows businesses to present tailored promotions to shoppers at the point of purchase. Future versions may include loyalty benefits and bundled offers.

Srinivasan highlighted developments in what she described as “agentic commerce,” where AI agents assist users across the shopping process.

Google launched the Agent Payments Protocol in 2025 and recently introduced the Universal Commerce Protocol to standardise how businesses connect with AI agents, including for digital identity and payments.

According to the letter, the Universal Commerce Protocol now supports purchases from Etsy and Wayfair within AI Mode in Search and Gemini for U.S. shoppers.

Srinivasan also pointed to Gemini 3, the company’s latest AI model, as a foundation for its advertising tools. She said adoption of generative AI in advertising has increased, with a threefold rise in Gemini-generated assets in 2025.

The company is also expanding AI-powered campaign tools, such as AI Max, to broaden the reach of search advertising and is working to consolidate measurement tools for advertisers.