Google shares what’s next in digital advertising and commerce in 2026

In her third annual letter, Vidhya Srinivasan, VP/GM of Ads & Commerce at Google, lays out how AI is transforming shopping and advertising in 2026 — making experiences faster, more personal, and more seamless for both consumers and businesses.

Key trends:

• Creators to commerce: YouTube continues to be a discovery hub, with creators acting as trusted tastemakers. AI is helping match brands to the right creators, turning influence into measurable business impact.

• Search ads evolve: With conversational and visual queries on the rise, AI Mode is reimagining ads as part of the discovery journey. New formats, like sponsored retail listings and Direct Offers, aim to help users find products and services while giving brands meaningful ways to convert interest into sales.

• Agentic commerce arrives: Google is standardizing AI-driven shopping with the Universal Commerce Protocol (UCP), letting consumers browse, pay, and complete purchases seamlessly in AI Mode. Early rollouts include Etsy and Wayfair, with Shopify, Target, and Walmart coming soon.
• AI-powered creative and performance: Gemini 3 powers ad tools that automate creative production and campaign optimization. Generative tools like Nano Banana and Veo 3 let advertisers create studio-quality assets in minutes, while AI Max expands reach and drives performance.

• Trust as a foundation: All these experiences are designed with privacy and security in mind. Data handling, agent actions, and ad personalization are grounded in Google’s 25-year standards for consumer trust.

Why we care. 2026 is shaping up as a pivotal year where AI turns every stage of the consumer journey into a seamless opportunity to connect. With AI-powered tools like Gemini 3, Nano Banana, Veo 3, and AI Mode, brands can create high-quality content faster, target the right audiences more precisely, and convert interest into purchases directly within search and discovery environments.

The rollout of agentic commerce via UCP also opens new, integrated buying moments, letting advertisers meet consumers exactly when they’re ready to act — all while maintaining trust and transparency.

The big picture: 2026 marks an expansionary moment for digital commerce and advertising — one where speed, personalization, and AI-driven insights remove friction, turning discovery into confident purchase decisions while keeping trust at the center.

Dig Deeper. What to expect in digital advertising and commerce in 2026

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