Google Expands AI-Powered Search Ads Worldwide
In the third quarter, Alphabet's revenue reached $127.6 billion, though the growth rate of Google Search advertising slowed to 12%.
Google has announced the global expansion of advertising in AI Mode—a search mode featuring artificial intelligence responses. The company is also increasing the reach of ads in AI Overviews, brief AI-generated summaries displayed above search results.
The plans were shared by Google’s Chief Business Officer, Philipp Schindler, during a discussion of Alphabet’s quarterly results. According to him, the company is shifting from experiments to broader deployment of ad formats.
A separate focus is ads in multi-step dialogues within AI Mode. Their rollout has been announced for the U.S., where ads will accompany searches as users refine their queries with follow-up questions.
Google claims that users find such offers relevant. According to the company’s internal data, the click-through rate on ad product cards in AI Mode is already comparable to that of standard product listings.
This expansion comes amid a slowdown in the growth of ad revenue for the Google Search & other category. In the third quarter, it increased by 12% year-over-year, reaching $63.3 billion. Meanwhile, leadership acknowledges that AI Mode is currently monetized at a lower rate.
User behavior is also evolving. As Sundar Pichai noted, the total number of search queries is growing at the fastest pace in five years. Queries in AI Mode are, on average, three times longer than traditional ones, and one in five includes voice, images, or documents.
Google aims to transform these new search methods into additional advertising opportunities.
