Latest updates that we want you to know: Google has released more details on how ads will function within AI Overviews. This format is still evolving, but a few key points are now confirmed:
- Ads shown in AI Overviews are reported as “Top Ads.” This confirms their high-visibility status and reinforces the importance of top-tier ad quality and relevance.
- Placement is determined automatically by Google’s existing systems and signals that advertisers cannot choose whether their ads appear above, below, or within the AI Overview module.
- No direct targeting or opt-out is available for ads in AI Overviews. This means all advertisers are automatically eligible, and there’s no way to isolate or exclude these placements.
- Reporting is not yet segmented. Currently, you won’t see a breakdown of performance specific to AI Overview placements. However, Google has acknowledged this limitation and is actively evaluating how to make future reporting more actionable for advertisers.
As these AI-driven experiences mature, dealers and marketers should focus on ensuring ad relevance, creative quality, and strong conversion tracking, all of which influence visibility across AI-enhanced surfaces in Search.
Google Ads Help Document on Ads in AI Overviews
We knew it was coming, and now it’s here.
Google has officially started rolling out Search and Shopping ads inside AI Overviews on desktop for United States users to start, but our guess is that this will expand globally, quickly.
This launch was confirmed earlier this week at the Google Marketing Live 2025 keynote (Search Engine Land, 2025), and it marks one of the most significant shifts in how ads are being presented alongside organic content powered by generative AI.
Since Google first launched AI Overviews in May 2024, we knew it was only a matter of time before it would be a new ad placement opportunity.
What We Know So Far
- AI Overviews ads are already in the wild
Search and Shopping ads are now being served within AI Overviews (the generative summaries that appear at the top of the search results for certain queries). This means ads are no longer restricted to traditional placements like the top or bottom of the page, and they can now show up right inside AI-powered summaries. - It’s only available in the US and for desktop users (for now)
The rollout is currently limited to desktop users in the US, but if history is any guide, it won’t stay that way for long. Google has already signalled plans to expand this experience more broadly by the end of the year. - There are three eligible campaign types
According to Google’s announcement, all Shopping, Performance Max (PMax), or broad match Search campaigns are automatically eligible for this new placement, with no extra setup required.
What We Don’t Know Yet
As with many Google updates, the first wave of information leaves marketers with more questions than answers. Here’s what we’ll be watching closely:
- Are VLAs included?
Google Vehicle Ads (VLAs) are a type of Shopping ad delivered via PMax campaigns and should be eligible for this placement, however, VLAs were not specifically mentioned in the announcement. We would venture that it’s a safe assumption, but we all know what happens when you assume… - When will this roll out in Canada or to mobile?
Google hasn’t shared a timeline, but global expansion is expected, possibly within months. Google has already signalled that these ad formats will expand globally to select countries later this year. - How will these placements be reported?
We don’t yet know if ad impressions and clicks from the AI Overviews placement will be segmented in campaign reporting. Will you be able to see the performance metrics specific to this placement? Will there be further ad optimizations required to improve performance metrics? - Will advertisers have control over AI Overview placements?
Right now, these ads are “opt-in by default” through eligible campaigns. But what if you want to bid higher (or lower) for this placement? No word on that yet.
Why It Matters for Automotive Dealerships
If you’re running eligible Google Ads (think VLAs, dynamic Search, or PMax campaigns), this change could affect where and how your ads show up in search results.
Imagine someone searching for “best used SUVs under $30K”, instead of seeing the AI Overview with Search ads and organic listings below (if they scroll down far enough), they could now see that same AI Overview with paid ads baked right into the summary. If your dealership is running eligible campaigns, you could be featured directly in this highly visible space.
This could be a major advantage for dealers already focusing on local SEO initiatives, value-driven messaging, and running properly optimized Google ad campaigns.
Bottom Line
AI Overviews are no longer just about organic visibility, they’re now an ad placement. For dealers and advertisers, this is another reminder that paid and organic search are more closely intertwined than ever.
We’ll be keeping a close eye on how these placements perform and evolve with our US clients, and deployment updates for Canada and mobile users. In the meantime, make sure your Search, PMax, and VLA campaigns are running smoothly because, whether you know it or not, your ads might already be showing up in AI Overviews.
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About sMedia
sMedia is a leading technology company empowering automotive dealerships with cutting-edge digital marketing solutions. sMedia helps dealers maximize marketing efficiency, boost conversions, and drive more sales. Trusted by over 450 dealerships across North America, sMedia delivers innovative products that are transforming how dealerships connect with customers. Learn more at https://smedia.io/.
Media Contact:
Angie Milana | Marketing Communications Lead
1-855-775-0062
