Google pilots AI-powered ‘Direct Offers’ for retailers
Google is piloting a new personalized advertising format that allows retailers to target shoppers in real time as they browse and buy through its AI Mode experience. The move adds another layer of commerce functionality to AI search and positions Google firmly in the race to power next-generation shopping journeys.
New ‘Direct Offers’ ad pilot
The advertising pilot, called Direct Offers, enables advertisers to present exclusive discounts to shoppers who are preparing to purchase items within AI Mode. Brands select which offers they want to feature in their existing campaign settings, while Google’s Gemini 3 AI model uses contextual signals from shopper conversations and clicks to decide when a specific offer should appear.
Initially, the focus is on discounts, but Google says it plans to expand the format to include additional value propositions such as bundles and free shipping to “help shoppers prioritize value over price alone”. For beauty and luxury brands, this creates a new top-of-funnel opportunity to reach high-intent shoppers with tailored offers around membership, loyalty and value-add services.
Commercial model and early partners
For the pilot, advertisers pay on a cost-per-click basis, with the format integrated into existing ad budgets and billing so no new payment framework is required. Google is already testing the model with Shopify merchants and brands including e.l.f. Cosmetics, Petco and Samsonite, with availability currently limited to US merchants.
Universal Commerce Protocol and integrated checkout
Alongside Direct Offers, Google has introduced a Universal Commerce Protocol (UCP), co-developed with Shopify, which allows US-based brands to sell directly within AI Mode. The protocol is open to e-commerce sites beyond Shopify and enables shoppers to research products and complete purchases through an integrated checkout without leaving their AI chats.
Brand-led ‘business agents’ in AI search
Google has also announced a new branded “business agent” feature that lets retailers integrate a customised agent within AI search so that product questions can be answered in their own brand voice. Retailers including Poshmark and Reebok are already using the tool to shape how AI responds to shopper queries and to maintain a consistent brand experience across AI surfaces.
Part of a wider AI commerce race
These launches arrive amid a flurry of AI commerce developments over the past six months, including integrated checkout tools from other major AI platforms that aim to mimic a personal shopping assistant. The shared ambition is to connect consumers with the right products more quickly and accurately, promising higher conversion rates for brands and potentially fewer returns as recommendations become more tailored.
