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Google takes ads in AI Mode worldwide as search growth slows
Google says ads inside its AI search are going global, while its own results show AI answers earn less than classic search.
On its October 28 earnings call, Alphabet said ads in AI Mode, Google’s chat-style search, are expanding to markets outside the US. Its chief business officer, Philipp Schindler, called it the first time Google’s monetization reaches worldwide. Multi-turn ads, which can appear as a conversation continues, are also coming to the US.
Search revenue grew 12% from a year earlier, TechCrunch reports, down from 17% last quarter and 19% the quarter before. The Register quotes Schindler blaming the slowdown on lower monetization in AI Mode, though he also argued most AI Mode queries are additional searches rather than replacements. TechCrunch reports he said clicks on sponsored product listings in AI Mode are comparable to organic listings. Reports of the share price drop differ, at about 8% and almost 10%.
If you buy Google ads, more of your budget could end up next to AI answers.
The catch: Both outlets are summarizing a call by a company selling the ads, and neither gives click or conversion figures for small advertisers. Whether AI Mode ads will pay off for you is unproven.
What it means for small businesses
- Your Google ads may start appearing in AI Mode results, including outside the US, as the rollout reaches you.
- AI answers can keep searchers on the results page, so check whether your organic clicks are shifting.
- Ad costs and reporting for AI Mode may differ from classic search, and the sources don’t say how.
What to do now
- Look at last quarter’s Google Ads and Search Console numbers so you have a baseline.
- Watch for any new AI Mode placement or report in your ad account.
- Keep your business profile, site and product feed accurate, since that is what these ads draw on.