Google's VP of Ads & Commerce, Vidhya Srinivasan, has outlined 2026 updates across Search, YouTube, and Gemini. In her third annual industry letter, she detailed Universal Commerce Protocol expansion, new AI Mode ad formats, and creator collaboration tools. The letter also references features introduced at NRF 2026 and on Alphabet's Q4 2025 earnings call.
Key details
Universal Commerce Protocol expansion
Google confirmed that its Universal Commerce Protocol (UCP) now supports purchases from Etsy and Wayfair for U.S. shoppers. Buyers can complete purchases from select retailers directly inside AI Mode and Gemini.
- Since announcing UCP at NRF 2026, Google reports interest from hundreds of technology firms, payment partners, and retailers.
- The protocol was co-developed with Shopify, and more than 20 companies endorsed it at launch, according to Google.
- Google described UCP as a foundation for "agentic experiences" across commercial categories beyond retail.
AI Mode ad formats and Direct Offers
Google is testing an AI Mode ad format that highlights retailers with products related to a shopper's query. Sponsored placements appear inside conversational results, are labeled as ads, and are intended to connect shoppers with purchase options while increasing merchant visibility during consideration.
Direct Offers, launched as a pilot at NRF 2026, lets businesses surface personalized deals inside AI Mode conversations. Google stated that Direct Offers will extend beyond price discounts to include loyalty rewards and product bundles.
YouTube creator and commerce tools
On YouTube, the letter highlighted AI tools that connect brands with creator communities by using content and audience analysis to recommend partnerships. Srinivasan cited a Google and Kantar study of 2,160 weekly video viewers that supports the influence of creators on purchase decisions.
YouTube CEO Neal Mohan recently issued his own annual letter describing creator and shopping priorities for 2026. Google's ads letter notes that YouTube's "open call" feature already helps brands source creator partners, and that Google plans deeper creator and commerce integrations in 2026.
Gemini creative assets, Veo 3, and AI Max
The letter reported a threefold increase in Gemini-generated creative assets during 2025 campaigns. In Q4 2025, advertisers produced about 70 million assets across AI Max and Performance Max, according to Google data.
Srinivasan wrote that Veo 3 is now available in Google Ads Asset Studio, alongside the previously released Nano Banana model.
She also stated that AI Max is generating billions of new searches that advertisers had not previously reached. Google introduced AI Max as an expansion feature for Search campaigns during Alphabet's Q4 2025 earnings call.
Background context
This is Srinivasan's third annual ads and commerce letter addressed to industry partners. Previous editions outlined Google's plans across Search, YouTube, and display properties. The 2026 letter continues that structure while focusing on AI Mode experiences and merchant integrations.
Several initiatives in the letter build on features previewed at the NRF 2026 retail conference. Google first announced the Universal Commerce Protocol and AI Mode checkout there, in partnership with Shopify and others. The company later discussed AI Mode ad experiments and AI Max results during Alphabet's Q4 2025 earnings call.
Source citations
- Google Ads & Commerce official blog - Vidhya Srinivasan 2026 ads and commerce annual letter.
- Alphabet Investor Relations - Alphabet Inc. Q4 2025 earnings call materials and transcript.
- Google and Kantar research on creator influence among 2,160 weekly video viewers, as cited in Srinivasan's letter.
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