At Google Marketing Live 2026, Google announced three new ad formats designed for the AI era of search. One of them, Conversational Discovery ads, appears inside AI Mode. Another, Highlighted Answers, shows up in AI recommendation lists. A third, Business Agent for Leads, puts a chatbot inside the ad that can answer questions based on the business website.

For trades businesses, these formats change how advertising works in Google search. Instead of competing for position in a list of sponsored links, businesses are competing to appear inside a conversational AI answer. The ad is no longer a text block with a headline and a URL. It is a Gemini-generated response tailored to the specific question the homeowner asked.

What Conversational Discovery ads do

Google described the format this way at Marketing Live: when someone searches a complex, conversational query, the Gemini model builds creative tailored to that search, highlighting specific relevant features. The ad answers the person's specific question rather than displaying a generic promotional message.

Google's example was a search about making a house smell like a spa or a rainy forest. The AI pulled relevant product features and wrote a custom ad explaining why specific products fit that request. For a trades business, the equivalent would be a homeowner searching "my boiler is making a banging noise, what should I do" and seeing a conversational ad from a local HVAC company that explains the likely cause, mentions their repair service, and offers to schedule a visit.

The ad is not triggered by keyword matching alone. It is triggered by the AI's understanding of the query intent and its match to the business's offerings. This means the business's Google Ads campaign, website content, and Google Business Profile all need to align around what the business actually does and where it does it.

How Highlighted Answers work

When AI Mode provides a list of recommendations, such as "best language apps for an upcoming trip," highly relevant, high-quality ads are eligible to appear on that list as a Highlighted Answer. The ad looks like a recommendation but is labeled as sponsored.

For trades businesses, this means a homeowner who asks "best plumbers in Bergen County for emergency repairs" could see a list of recommendations from AI Mode, with one or two of them being Highlighted Answer ads. The businesses that appear as Highlighted Answers get premium placement in the AI-generated list.

The catch is that the ad still needs to be relevant and high-quality. Google said only "highly relevant, high-quality ads" are eligible. A trades business with a generic ad campaign, no service area targeting, and no specific service pages is unlikely to qualify. A business with a well-structured Google Ads campaign targeting specific trades services in specific counties has a better chance.

Business Agent for Leads

The third format, Business Agent for Leads, puts a Gemini-powered chatbot inside the ad. Instead of filling out a static form, a person can click "Chat" and get instant answers based on the business website. Google's example was a student researching universities, but the same applies to a homeowner researching HVAC contractors.

The Business Agent reads the business website and answers questions about services, availability, pricing, and anything else the website covers. If a homeowner asks "do you offer emergency service on weekends," the agent answers based on what the website says. If the website does not mention weekend emergency service, the agent cannot answer the question.

This is where website content quality directly affects lead generation. A trades business with a detailed website that lists services, service areas, hours, emergency availability, and pricing gives the Business Agent the raw material it needs to answer homeowner questions and convert them into leads. A website that says "quality plumbing services" and nothing else gives the agent nothing to work with.

What trades businesses should do

Set up Performance Max and AI Max campaigns. Google said businesses should ensure their campaigns are set up with Performance Max and AI Max tools to take advantage of the new ad formats. These campaign types give Google's AI the widest possible signal pool to match ads to conversational queries.

Write specific service pages. The Business Agent for Leads reads the website. A page that says "emergency boiler repair in Passaic County, available 24/7, $150 service call fee" gives the agent specific information to answer homeowner questions. A page that says "we handle all your plumbing needs" does not.

Keep the star rating above 4.30. Highlighted Answers are "highly relevant, high-quality ads." Quality in Google's AI era includes the business's reputation signals. A 3.8-star business is less likely to qualify as a Highlighted Answer than a 4.6-star business, even with identical ad spend.

Use structured data on the website. The Gemini model that powers Conversational Discovery ads reads the website to build the ad creative. LocalBusiness schema gives it clean, structured data about the business name, services, service area, and contact information. Without it, the AI has to parse unstructured text and may get details wrong.

Target by service area, not just keywords. Conversational queries are specific to location and situation. "My AC stopped working and I need someone in Hackensack today" is a query that combines service type, urgency, and location. Google Ads campaigns that target specific service areas and use service-specific keywords are more likely to match these conversational queries than campaigns that target "plumbing services" across a 50-mile radius.

The shift from keyword ads to conversation ads

Traditional Google Ads are keyword-based. The business bids on "plumber near me" and shows up when someone searches that phrase. Conversational Discovery ads are intent-based. The AI understands what the homeowner is trying to accomplish and matches the ad to the intent, not just the words.

This means the old playbook of bidding on high-volume keywords and pointing them to a generic landing page is losing relevance. The new playbook is about having specific service pages, accurate business data, a strong star rating, and ad campaigns that target the actual services and areas the business covers.

The businesses that adapt will show up in AI Mode conversations. The ones that do not will compete for a shrinking pool of traditional search ad clicks while their competitors capture the conversational traffic.

FAQ

What are Google Conversational Discovery ads?

Conversational Discovery ads are a new Google ad format announced at Google Marketing Live 2026. They appear inside AI Mode and use the Gemini model to build ad creative tailored to a person's specific conversational search query. Instead of showing a generic text ad, the AI writes a response that addresses the searcher's specific question and highlights relevant features from the advertised business.

How do Highlighted Answers work in Google AI Mode?

Highlighted Answers are sponsored placements that appear within AI Mode's recommendation lists. When AI Mode generates a list of recommendations for a query, highly relevant and high-quality ads can appear as Highlighted Answers within that list. The ads are labeled as sponsored but appear alongside organic recommendations.

What is Business Agent for Leads?

Business Agent for Leads is a Google ad format that places a Gemini-powered chatbot inside an ad. Instead of filling out a static lead form, a person can click "Chat" and ask questions about the business. The agent reads the business website and answers based on what it finds. The quality and detail of the website content directly affects what the agent can answer.

Do trades businesses need to change their Google Ads for AI Mode?

Yes. The new ad formats in AI Mode are intent-based and conversational, not keyword-based. Trades businesses should set up Performance Max and AI Max campaigns, target by specific service areas, write detailed service pages, and ensure their star rating is above 4.30. The AI matches ads to conversational queries based on the business's relevance to the specific question, not just keyword bids.

How can a trades business appear in Google AI Mode ads?

To appear in Conversational Discovery ads and Highlighted Answers, a trades business needs a well-structured Google Ads campaign with Performance Max or AI Max, specific service pages on the website, LocalBusiness schema for structured data, a star rating above 4.30, and accurate service area targeting. Google said only highly relevant, high-quality ads are eligible for Highlighted Answers, so the business's reputation signals matter alongside ad setup.

Run your free AI visibility audit to see whether your trades business is ready for Google's new AI ad formats. The audit checks your presence across ChatGPT, Gemini, and Perplexity and flags the gaps that keep you out of AI answers.