Google AI Mode displayed text ads for 29% of commercial keywords, according to a new analysis by SE Ranking. The analysis revealed that in most cases, the domains of advertisers were not cited among the sources provided by AI Mode for these keywords.
Specifically, SE Ranking found that the advertiser’s domain was included in the AI Mode sources 11% of the time, while the exact URL appeared just 1.95% of the time. In the remaining instances, the paid ad’s advertiser was not referenced by AI Mode.
The frequency of ads was more closely linked to cost per click (CPC) than any other factor examined. The report indicated that CPC rates rose significantly across three pricing bands: a 24% increase for keywords costing less than $2, a 32.45% increase for those priced between $2 and $10, and a 53.56% increase for keywords costing $10 or more. However, the report did not provide a model or sample sizes for these bands, implying a correlation rather than a definitive predictor.
Ad presence varied significantly by niche, with 72% of keywords related to Pets showing ads compared to just 2% in the Healthcare sector. SE Ranking suggested that categories with higher ad presence are primarily focused on lead generation, while those with lower presence tend to be more informational or aligned with Your Money or Your Life (YMYL) criteria.
Moreover, advertisers rarely ranked organically for the keywords they purchased. Only 2% of paid URLs also appeared in the organic search results for the same keyword, while 15.35% of domains did so at the domain level. This discrepancy may stem from the use of landing pages that are not designed to rank organically, although the domain-level gap persisted across various ranking tiers.
Google has been gradually increasing the number of ads within AI Mode. During Google Marketing Live, the company introduced two new ad formats: Conversational Discovery ads and Highlighted Answers, which are currently still in testing phases. This follows a letter from Vidhya Srinivasan, suggesting that Google may expand AI Mode ads in 2026.
Data indicates that AI Mode ads operate independently, with ad placement and citations often misaligned for the same keywords. As such, purchasing a slot does not guarantee citation or ranking, making it essential to treat this as a distinct paid channel, especially for high-CPC keywords.
The overlap between ads and citations is primarily beneficial for visibility rather than direct purchases. A competitor appearing in AI Mode does not necessarily imply they will be cited as a source, as these occurrences rarely align simultaneously. Businesses are advised to monitor paid and citation presence separately.
Currently, paid ads and cited information are distinct, and Google is testing new formats that may blur these lines. If Conversational Discovery ads and Highlighted Answers become widely adopted, the relationship between purchasing ad placements and appearing in AI responses could evolve.
