Google has begun introducing advertising into AI-generated search queries, including AI Overviews and conversational search formats. These placements appear alongside or inside AI-generated answers and product recommendations, changing how users discover and choose products from Paid Ads. The AI responses help users discover relevant products and brands they might not have searched for during the research and discovery phase of their journey.

For e-commerce brands, this isn’t just a format update. It represents a structural shift in how visibility, competition, and product discovery work in paid search.

 

The Shift: From Keyword Visibility to AI-Driven Discovery

Instead of presenting users with a list of links, Google is increasingly delivering curated answers and product suggestions generated by AI models, with users asking, exploring and comparing in conversation. Ads can now appear within these AI-led experiences, not in traditional ads, meaning brands must compete to be included in AI-generated recommendations.

To be part of the competition for these new ad spaces, where competition is even greater than before, brands need to:

  • Have solid product data quality (making Google understand your offering and product data)
  • Have their products communicate contextual relevance, not just keyword matching

It is also worth noting that brands and competitors can appear in AI summaries even if they previously ranked lower in traditional search, which changes the playing field completely.

Why Product Feed Optimisation Is (Still) Critically Important

AI-driven ad placements rely heavily on structured product data to determine which products appear in AI-generated recommendations and shopping experiences, or conversations.

Google has emphasised that merchant feeds, structured product information, and data quality directly impact product visibility across its AI-powered shopping surfaces.

For e-commerce brands, this means feed optimisation is no longer just a Shopping Ads best practice but is now central to overall search visibility. By building high-quality product feeds with feed optimisation, your brand will improve your product understanding for AI systems and increase your eligibility for AI-generated recommendations.

Competition Is Also Changing, In Favour of Smaller Brands

AI answers often recommend products before users click through to traditional listings or comparison sites, moving competition into earlier discovery and research phases.

This means that new competitors can enter consideration earlier, and product data quality directly influences paid visibility.

What AI Branded Search Means for E-commerce Brands

1. Product Data Is the Leading Factor

Feed quality increasingly determines whether products are eligible for AI-driven recommendations and/or ad placements.

2. Competitive Intelligence Is Becoming More Valuable

Understanding who appears alongside your products, and where, is now essential for protecting visibility and revenue (and these can be smaller brands than before)

3. Paid Search Is Becoming More Integrated With Organic Discovery

AI search blurs the lines between organic results, shopping recommendations, and paid placements, requiring a more holistic approach to search visibility.

How Bidnamic Helps Brands Stay Competitive in AI-Driven Search

At Bidnamic, we combine AI technology with human expertise to help e-commerce brands maximise visibility and performance across evolving search environments.

We support brands by:

  • Optimising product feeds to improve eligibility and relevance
  • Tracking competitive visibility across paid search surfaces
  • Identifying visibility gaps and growth opportunities
  • Using AI-driven optimisation guided by human strategy

Our approach ensures brands stay competitive as Google search moves toward AI-driven product discovery.

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