Google is testing a new ad asset that places targeted promotions inside AI Mode search results, with access restricted to campaigns already enrolled in the platform's AI-powered tools. A beta-labelled Direct Offer option has appeared in the Google Ads Assets interface, as first observed on October 7, 2026, placing the new format alongside existing assets including Promotions, Messages, and Lead Forms.
Asset Setup and Eligibility Requirements
Offers can be created at either the account or campaign level. However, the format carries a significant eligibility constraint: Google says Direct Offers will only serve on campaigns using AI Max or text customization, tying the format closely to Google's AI-powered advertising tools. Starting in September 2026, campaigns using text customization, formerly known as automatically created assets, were automatically upgraded to AI Max, meaning the Direct Offer asset is now reachable for a broader share of Search advertisers than it would have been earlier in the year.
How Advertisers Configure an Offer
Advertisers provide an internal offer name, a final URL, and a short description explaining the promotion. Google AI uses that description to determine when the offer is relevant and can automatically generate the offer text shown to shoppers.
Advertisers can specify the incentive type and value and optionally upload single-use promo codes through a CSV. Multiple incentives can be added, with Google AI choosing which one to show based on the shopper's behaviour and context.
Offers can include terms and conditions, a terms URL, and start and end dates. Advertisers can also set daily limits based on either the total value or number of claims, helping prevent promotions from exceeding their intended budget.
Shopper-Facing Presentation in AI Mode
In AI Mode, an eligible promotion can appear beneath a sponsored result as a "Claim one-time code" option. Selecting it opens the offer details and promo code alongside a button that sends the shopper to the advertiser's website.
This placement is consistent with the broader expansion of commercial formats inside Google's conversational search experience. Announced at the National Retail Federation conference in January 2026, the Direct Offers concept works by analyzing conversation context, and when Google's AI detects that a shopper has high purchase intent, it surfaces a relevant discount from a participating retailer pulled from verified Merchant Center feeds. The Assets interface beta marks the first time the format has appeared as a configurable asset type within the standard Google Ads campaign workflow.
Automation and Advertiser Controls
The Direct Offer asset introduces an additional layer of automated decision-making into the promotion delivery process. Google's AI determines both when an offer is contextually relevant and which incentive from an advertiser's uploaded set to surface. Advertisers cannot pay to force the AI to recommend their product over competitors. Google stresses that Direct Offers do not influence the AI's organic response, and placement is based on contextual relevance and deal quality.
Advertisers retain structural controls over budget exposure through daily claim limits set by either total redemption value or number of claims. These guardrails are intended to keep promotional costs within predefined thresholds regardless of AI-driven delivery volume.
Practical Implications for Advertisers
For paid search practitioners, the Direct Offer asset introduces a new attribution question: whether claimed codes represent incremental sales or discounts applied to conversions that would have occurred without the offer. Monitoring redemption rates alongside margin data and conversion incrementality will be necessary to evaluate actual return on promotion spend. Advertisers running campaigns not yet on AI Max should confirm their eligibility status, given that the format will not serve outside of AI Max or text customization-enabled campaigns.
Google has not announced a general availability date for the Direct Offer asset. The beta label in the Google Ads Assets interface indicates the feature remains in a testing phase as of October 7, 2026.
