Google Reports Lower Monetization for AI Mode Ads
AI · First reported 29 Oct, 14:15 · Updated 16:37
Google said AI Mode queries currently earn less advertising revenue than comparable traditional searches, while it plans to expand ads in AI Mode. Its Q3 report also showed slower search growth than in the previous two quarters.
- Google reported that each AI Mode query currently earns less revenue than a similar traditional web search, citing fewer ads and lower costs per ad.
- Google said it is expanding ads in AI Mode to more users and queries, including international markets and multi-turn ads in the United States.
- Search grew 12 percent year over year in Q3, down from 17 percent in Q2 and 19 percent in Q1, according to the report.
Summary written by Lux AI from 2 articles
Key facts
- Q3 revenue
- Nearly $128 billion, according to the report.
- Q3 net income
- More than $26 billion.
- Q3 search growth
- 12 percent year over year.
- AI Mode ad revenue
- Google said each AI Mode query currently earns less than a similar traditional search.
- Ad expansion
- Google said it is expanding AI Mode ads to international markets and adding multi-turn ads in the U.S.
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Background
- An earlier Lux headline covered an Alphabet selloff and AI infrastructure stocks to watch; no further details are supplied. [ec1974f4-3924-43e3-a8da-7f7ddc4afc3e]
- An earlier Lux headline covered the Gates Foundation’s challenge to Africa’s AI builders; no further details are supplied. [6286f074-b5b8-46cd-94bc-6b1e2061f2da]
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