February 2026 Google & AI Advertising Updates

What dealerships need to know.

Digital advertising continues to evolve, and the latest updates from Google and OpenAI offer a preview of where things are headed next. From ads beginning to appear inside AI tools to expanded audience targeting and creator partnerships,

these changes signal a future where AI plays a larger role in how shoppers discover dealerships—often before a traditional search ever happens.

For dealerships, the key isn’t reacting to every update. It’s understanding which changes matter now, which ones are worth watching, and how they could impact visibility and performance in the months ahead.

Ads in OpenAI and ChatGPT Are Coming.

OpenAI has announced plans to begin testing ads inside ChatGPT for logged-in adult users on free tiers. These ads will appear at the bottom of responses when relevant to a sponsored product or service. OpenAI has stated that ads will not influence how answers are generated.

Why this matters for dealerships
There’s no immediate action required. At this stage:

There’s no way to advertise or enroll
No targeting or reporting details are available
This is an early test only

Still, this update is an important signal. AI-driven discovery is expanding beyond Google, and sponsored visibility inside AI tools could eventually become another channel dealers need to understand.

Google Lowers Audience Size Limits Across Ads.

Google has reduced the minimum audience size requirements across Search, Display, and YouTube. Audience segments with as few as 100 users can now be activated, down from the previous 1,000-user threshold. This applies to both remarketing and customer match lists.

Why this matters for dealerships
This is a meaningful change, especially for smaller and mid-sized dealerships. Lower thresholds make it easier to:

Use customer lists sooner
Launch remarketing with less traffic
Build more precise, high-intent audiences

This update gives dealerships more flexibility and makes audience-based strategies accessible across more markets.

More Demand Gen updates continue to roll out.

Google is continuing to invest heavily in Demand Gen, reinforcing it as a key growth area.

What’s new

Shoppable CTV through Demand Gen, allowing viewers to browse and purchase while watching YouTube on connected TVs
A Brand Search attribution beta, showing how Demand Gen influences branded search (must be enabled by a Google rep)

Why this matters for dealerships
These updates show Demand Gen is moving beyond awareness. Dealers can use it to influence branded demand and support incremental conversions—especially earlier in the funnel. Google’s investment signals Demand Gen will be a larger focus heading into 2026.

Creator partnerships get easier on YouTube.

Google has enhanced its Creator Partnerships offering with a new Creator Search and Management Hub, making it easier for advertisers to find and work with YouTube creators.

Why this matters for dealerships
Creator partnerships are common on social platforms, but historically harder to activate on YouTube. These tools make it easier for dealerships to:

Identify relevant creators
Test creator-driven video content
Build trust through authentic storytelling

This opens the door for more video-first, awareness-focused strategies.

What dealerships should do now.

Across all of these updates, one theme is clear: AI and advertising are becoming more flexible, more contextual, and more upper-funnel focused.

Dealerships should:

Take advantage of smaller audience thresholds
Begin testing Demand Gen if they haven’t already
Monitor AI platform advertising developments

Stay flexible as new formats roll out

February 2026 Google & AI advertising updates.