This month’s Ask A PPC explores a question many advertisers are starting to ask:

“Can AI Mode ads actually drive conversions, or is this just another awareness play?”

The answer to this question will vary based on how advertisers define success and what they’re comparing it against. Many accounts measure new opportunities against campaigns that have been refined for years through search query mining, bidding adjustments, landing page testing, and budget prioritization.

That type of comparison can create unrealistic expectations for any new traffic source.

In this post, we’ll look at where AI Mode may drive direct net-new conversions, where it may play more of an awareness role, and how advertisers should evaluate performance without using the wrong benchmark.

AI Mode Is Not Competing With Your Best Keywords

One of the biggest mistakes advertisers can make is comparing AI Mode traffic to their top-performing branded or bottom-funnel non-brand campaigns.

That is not the right comparison when looking at AI Max performance.

Your best campaigns are often built on years of optimization. Of course, those campaigns are efficient.

AI Mode opens the door to longer, more exploratory searches that may never have triggered your traditional keyword strategy in the first place. Google has also said ads can appear when users ask deeper, more complex questions inside AI Mode.

Those searches may not convert at the same rate on day one. That doesn’t mean they have no value in your campaigns.

It means you are entering net-new demand and broader intent pools.

If you feel your existing campaigns have maxed out (no pun intended) your bottom-of-funnel searches, why wouldn’t you want to expand to show up for searches that a user might be doing to find your brand?

AI Mode Can Drive Conversion, But Expect Different Economics

Can AI Mode generate conversions? Absolutely.

The real question is: at what cost, and with what expectations?

Most non-brand expansion efforts come with a higher cost per action than what advertisers are used to seeing from their core campaigns. That has historically been true. It was true with broad match expansion, Dynamic Search Ads, Performance Max, and now AI-driven placements.

If you are only willing to buy conversions at the exact same CPA as your most mature campaigns, you may shut off growth opportunities before they have a chance to develop.

That does not mean you should spend any extra or testing budgets blindly. It means understanding that incremental conversions often cost more than your historical average.

A better way to think about it is not “Does this beat my blended CPA?” but “What will my next dollar get me?”

That is the question growth-focused advertisers should be asking.

What Early AI Max Data Suggests

While AI Mode ad data is still limited, early AI Max performance data gives advertisers a useful directional signal.

In an analysis of 250+ campaigns, Mike Ryan of SMEC found AI Max delivered a 13% lift in conversion value overall, though CPA increased and return on ad spend results were less predictable across accounts.

In Google’s latest announcement with AI Max coming out of beta, it stated that advertisers saw an average of 7% increase in conversions at a similar ROAS or CPA.

That lines up with how many expansion products behave.

You may get more volume, and you may reach new search terms. You may increase total conversion value. But, efficiency can soften if you compare it to your most optimized traffic sources.

That does not make the channel bad. It means it needs the right job description and expectations for your overall business goals.

AI Max Can Be Used To Drive Awareness

There is also an honest answer here: Some AI Mode traffic will be more upper funnel.

If someone searches broad informational questions, comparison queries, or early research topics, that click may not convert immediately. In those cases, AI Mode can function more like awareness or assisted discovery.

That shouldn’t scare advertisers. In my opinion, informational or research-based search terms are still further down the funnel than true awareness tactics like YouTube, OTT, Direct Mail, etc. Those are still creating demand where ads in searches are still capturing (or reacting) to the demand already there.

Many customer journeys are not one-click journeys. A user may discover you through an AI-assisted search, return later through branded search, then convert through email or direct traffic.

If you only judge AI Mode through last-click reporting, you’re going to undervalue what it contributes to the overall business.

This is where marketers should also consider assisted conversions, branded search lift, remarketing incremental growth, and total account performance.

How I’d Approach Testing AI Mode

If I were evaluating AI Mode today, I would keep expectations realistic and testing structured. Start with a budget you can afford to learn with and don’t let your best campaigns carry the burden of comparison.

Segment performance where possible. Watch query quality, conversion lag, assisted paths, and total conversion volume. Most importantly, give it enough time to gather signal before making a final call.

Too many advertisers want expansion-level growth with core campaign efficiency on day one. That is rarely how growth works.

In Conclusion

AI Mode ads can drive conversions. I do not view them as awareness-only inventory.

But, I also would not expect them to perform like the most polished parts of an account that have been tuned for years.

For some advertisers, AI Mode may become a meaningful source of incremental growth. For others, it may be better suited for discovery and assisted conversions.

The opportunity is there, but advertiser expectations need to be realistic based on what AI Max is intended to do.

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Featured Image: Roman Samborskyi/Shutterstock