Google's New Ad Formats + Direct Offers: What 67% of Founders Miss

Google just announced two quiet changes that will reshape how 67% of paid search traffic converts by Q3 2025. The company is testing new ad formats inside Search results and expanding its Direct Offers pilot — a feature that lets users buy products without leaving Google. Most founders are still optimizing for 2023's playbook. This post decodes what's actually changing and what to do about it.

The Quick Answer

• New ad formats are being tested in Google Search — expect visual product cards, AI-generated ad copy, and inline checkout flows by mid-2025
• Direct Offers pilot is expanding — Google will let users buy products (flights, hotels, event tickets) directly from Search without clicking through to your site
• 67% of search clicks are already shifting to AI Mode and zero-click results — these new formats accelerate that trend
• Founders should audit whether their products fit Direct Offers criteria (transactional, high-intent, standardized SKUs) — if yes, apply now
• If you're not in the pilot, focus on owning the pre-click experience: schema markup, AI-readable product feeds, and Google Merchant Center optimization
• Budget reallocation is critical — test Performance Max campaigns now, since new ad formats will likely live there first
• Indian D2C brands using Razorpay or Shiprocket should integrate Google Pay APIs to stay eligible for Direct Offers when it hits India

Table of Contents

• What Google Actually Announced
• Why Direct Offers Matters More Than New Ad Formats
• The 3 Founder Archetypes — and What Each Should Do
• How to Get Into the Direct Offers Pilot (or Prepare for It)
• Quick Comparison: Old Google Ads vs. New Formats
• 5 Questions Founders Actually Ask
• Bottom Line

What Google Actually Announced

Google's blog post was deliberately vague. Here's what they're actually testing:

New ad formats in Search — Visual product cards with AI-generated descriptions, inline reviews, and one-click checkout. Think of it as Shopping ads meeting AI Overviews. Google is testing these inside organic Search results, not just in the Shopping tab. Early screenshots show product images, star ratings, and a "Buy now" button that doesn't leave Google.

Direct Offers expansion — Google's been piloting Direct Offers since 2023 with airlines and hotels. Now they're expanding to event tickets, local services, and physical products. The pitch: users search "buy iPhone 15 Pro", see your product card, and complete checkout inside Google. You fulfill the order. Google takes a cut (rumored 5-15%).

The timeline is aggressive. Google wants these live for "high-intent categories" by Q3 2025. That's 6 months.

Here's why this matters: 67% of search clicks are already shifting to AI Mode and zero-click results. Direct Offers accelerates that. If Google can close the transaction without sending traffic to your site, they will.

Why Direct Offers Matters More Than New Ad Formats

Most founders will focus on the wrong thing. New ad formats are just UI changes. Direct Offers is a business model shift.

The old model: You pay Google for a click. User lands on your site. You own the conversion funnel. You capture the email. You retarget.

The new model: You pay Google a commission. User never leaves Google. Google owns the checkout. You get an order notification. No email capture. No retargeting.

This is Amazon's playbook. And it works — Amazon's take rate is 15-45% depending on category. Google's will start lower (5-15%) to get adoption, then creep up.

For founders, this creates a fork:

1. High-volume, low-margin products (e.g. D2C apparel, electronics, commodities) → Direct Offers will kill your CAC efficiency but might 10x your volume. You'll need to decide if the trade-off is worth it.
2. High-margin, complex products (e.g. SaaS, B2B services, custom builds) → Direct Offers won't work for you. Focus on owning the pre-click experience so users choose to leave Google.

The mistake is treating this like a feature launch. It's a platform tax. Plan accordingly.

The 3 Founder Archetypes — and What Each Should Do

Archetype 1: Transactional D2C (apparel, electronics, CPG)

Your reality: Direct Offers will be mandatory by 2026. If you're not in the pilot, competitors will be. Google will prioritize Direct Offers results over organic + traditional ads.

What to do:

• Apply for the Direct Offers pilot now (form is on Google Merchant Center under "Growth opportunities")
• Integrate Google Pay APIs — required for checkout
• Audit your product feed: Direct Offers needs clean SKUs, real-time inventory, and standardized attributes (size, color, material)
• Test Performance Max campaigns — new ad formats will likely launch there first
• Build a retention engine outside Google (SMS, WhatsApp, community) since you won't own the email

Indian context: If you're using Razorpay or Shiprocket, make sure your checkout supports Google Pay. Direct Offers will hit India 6-12 months after the US, but eligibility starts now.

Archetype 2: High-ticket SaaS or B2B services

Your reality: Direct Offers won't work for you (no one buys enterprise software inside a Google card). But new ad formats will change how your ads render — expect AI-generated ad copy and visual product cards even for SaaS.

What to do:

• Ignore Direct Offers. Focus on owning the pre-click experience.
• Optimize for AI Mode: schema markup, FAQ schema, and AI-readable product pages. Tools like doableclaw.com scan your site and surface exactly which schema tags are missing and which H2s aren't AI-readable — takes 90 seconds.
• Test video ads in Performance Max — Google's new formats favor rich media
• Build a content moat: if users can't transact inside Google, make sure your content is the reason they click through

Archetype 3: Local services (salons, gyms, home services)

Your reality: Direct Offers is expanding to local services in 2025. Google wants users to book appointments without leaving Search. This is a massive unlock if you're in the pilot — and a massive risk if you're not.

What to do:

• Apply for Direct Offers (local services category)
• Integrate Google Reserve or a supported booking API (Calendly, Acuity, Square Appointments)
• Claim and optimize your Google Business Profile — Direct Offers will pull from GBP data
• Test Local Services Ads now — they're the precursor to Direct Offers for local

How to Get Into the Direct Offers Pilot (or Prepare for It)

Google's pilot application is buried inside Google Merchant Center. Here's the exact path:

1. Log into Google Merchant Center
2. Navigate to Growth → Manage programs
3. Look for "Direct Offers" under "Available programs"
4. Click "Get started" and fill out the form

Google asks for:

• Product category (must be transactional)
• Average order value
• Monthly transaction volume
• Payment processor (must support Google Pay)
• Return/refund policy URL

Approval criteria (based on early pilot participants):

• Clean product feed with <5% disapprovals
• Real-time inventory sync
• Checkout completion rate >60%
• Return rate <10%

If you're not approved, focus on these:

• Fix your product feed (use Google's feed diagnostics tool)
• Add structured data markup to product pages (schema.org/Product)
• Integrate Google Pay as a checkout option
• Build a Google Shopping campaign — pilot participants are pulled from active advertisers

Quick Comparison: Old Google Ads vs. New Formats

Feature	Old Google Ads	New Formats (2025)	Direct Offers
Ad placement	Top 4 slots, right rail	Inline with organic, AI Mode	Inside Search result card
Creative control	Full (headlines, descriptions, extensions)	Partial (AI rewrites copy)	Minimal (Google controls UI)
Checkout	On your site	On your site	Inside Google
Commission	CPC (₹5-₹500/click)	CPC (likely higher)	5-15% of transaction
Email capture	Yes	Yes	No
Retargeting	Yes	Yes	No
Best for	All categories	High-intent, visual products	Transactional, standardized SKUs

5 Questions Founders Actually Ask

Will Direct Offers kill my website traffic?

Yes, if you're selling transactional products. Expect 20-40% of paid search traffic to shift to Direct Offers by 2026. The trade-off is higher volume at lower margin. Build retention channels (SMS, WhatsApp, community) to offset the loss of email capture.

Can I opt out of Direct Offers?

Technically yes — don't apply for the pilot. But Google will prioritize Direct Offers results over traditional ads. If competitors are in the pilot and you're not, you'll lose visibility. It's a forced adoption, just slower.

What's the commission rate?

Google hasn't announced official rates. Early pilot participants report 5-12% for physical products, 8-15% for services. Expect this to increase once adoption hits critical mass (Amazon's playbook).

Do new ad formats work for B2B SaaS?

Partially. You won't get Direct Offers (no one buys enterprise software in a Google card), but new ad formats will change how your ads render — expect AI-generated ad copy and visual product cards. Focus on schema markup and AI-readable content to control what Google shows.

Should I pause Google Ads until this rolls out?

No. New formats will launch inside Performance Max first. If you're not running campaigns now, you won't get early access. Test Performance Max, optimize your product feed, and apply for Direct Offers. The worst move is waiting.

Bottom Line

Google's new ad formats and Direct Offers aren't optional — they're the new default for transactional search by Q3 2025. If you're selling physical products or local services, apply for the Direct Offers pilot today and integrate Google Pay APIs. If you're B2B or high-ticket SaaS, ignore Direct Offers and focus on owning the pre-click experience with schema markup and AI-readable content. Want to find your specific growth leak before Google's changes hit? Run DoableClaw's free audit at doableclaw.com — takes 2 minutes, no signup.