Science & Tech · Big Tech & Internet · 5 hrs ago
Google expands AI Search ads internationally as ad growth slows
Google is expanding ads in AI-powered Search internationally as it looks for new ways to earn money from its AI features.
The move comes as growth in Search advertising is slowing: revenue grew 12% year over year in the third quarter, down from 17% in the second quarter.
Alphabet reported $127.6 billion in quarterly revenue, up 25% from a year earlier, but its shares fell 8% after the results.
Google says AI is changing how people search, with queries in AI Mode three times longer on average than traditional searches.
The company says click rates for sponsored products match organic listings in AI Mode, and its research suggests users find the ads relevant.
Google plans to bring ads in AI Mode to more international markets, while adding multi-turn ads and AI Mode in the United States.
Google is expanding ads in its AI-powered Search experiences into international markets as growth in its core Search advertising business slows.
The announcement came during Alphabet’s third-quarter earnings call, where the company reported revenue of $127.6 billion, up 25% year over year.
Google Search revenue grew 12% year over year in the third quarter, compared with 17% in the second quarter and 19% in the first.
Google says click-through rates for sponsored product listings in AI Mode are comparable to organic listings, and user research suggests people find the ads relevant.
Alphabet shares fell 8% following the results.
- Who
- Google, part of Alphabet, announced the expansion.
- What
- Google is bringing ads in AI Mode to international markets and said it is also expanding multi-turn ads and AI Mode in the U.S.
- When
- The announcement came Wednesday during Alphabet’s third-quarter earnings call.
- Where
- International markets, alongside the U.S.
- Why
- Google is seeking new advertising revenue opportunities as growth in its core Search advertising business slows.
This story does not have two clearly opposing sides.
Google announced new Gemini-powered ad formats, including conversational discovery ads and sponsored recommendations in AI-generated answers.
Google announced during Alphabet’s third-quarter earnings call that it would expand AI Mode ads into international markets.
Google Search revenue grew 12% year over year, down from 17% in the second quarter and 19% in the first.
Alphabet shares fell 8%.
- Alphabet revenue
- $127.6 billion in the third quarter, up 25% year over year
- Google Search revenue growth
- 12% year over year in the third quarter
- Google Services revenue
- $96.3 billion, up 11% year over year
- Google Cloud revenue
- $30.7 billion, up 103%
- AI Mode query length
- Three times longer on average than traditional searches
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What people are saying
We are now scaling high-quality ads within AI overviews in AI mode to more users and queries
This includes taking our monetization footprint global for the first time. Today, we’re announcing the expansion of ads in AI mode into international markets alongside multi-turn ads and AI mode in the U.S.
People are using our AI features more, searching in entirely new ways. Their queries are longer, personalized, and multimodal.