Google Ads tests new Direct Offer asset for AI Mode promotions

Google is testing a new Direct Offer asset in Google Ads, giving advertisers a way to serve targeted promotions to high-intent shoppers directly within Google’s AI Mode.

What’s new. A beta-labeled Direct offer option is appearing in the Google Ads Assets interface alongside assets. Including Promotions, Messages and Lead forms. Offers can be created at either the account or campaign level.

The catch. 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.

How it works. Advertisers provide an internal offer name, 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.

The incentive. 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 behavior and context.

More controls. 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.

What shoppers see. 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.

Why we care. Direct Offers give marketers another way to turn AI-driven product discovery into action. The ability to tailor incentives based on context could help advertisers use discounts more selectively instead of showing the same promotion to every shopper.

Yes, but. Giving Google’s AI control over which incentive appears also introduces another layer of automation. Advertisers will need to watch redemption rates, margins and incrementality to determine whether offers are generating additional sales or simply discounting purchases that would have happened anyway.

The bottom line. Direct Offers turn discounts into an AI-driven ad asset, allowing Google to match promotions with high-intent shoppers at the point of discovery — while giving advertisers controls over incentives, claims and promotional costs.