Google Expands AI Mode Search Ads to Global Markets
Alphabet announced during its third-quarter earnings call that it is expanding AI-powered search ads to more global markets and launching multi-turn conversation-supported ads in the U.S. In the third quarter, Alphabet's revenue reached $127.6 billion, a 25% year-over-year increase, but search ad revenue grew by 12%, a slowdown from the previous two quarters.
Google Expands AI-Mode Search Ads to Global Markets
Alphabet, Google's parent company, announced during its third-quarter earnings call that it is expanding AI-mode search ads to more markets worldwide and launching multi-turn conversation-supported ads in the United States, in an effort to turn generative AI search into a new revenue stream. The company stated that the click-through rate for sponsored product listings in AI mode has nearly matched that of organic search results.
However, growth in Google's core search advertising business is slowing. In the third quarter, Alphabet's revenue reached $127.6 billion, a 25% year-over-year increase. Yet, search ad revenue grew by only 12% year-over-year, down from 17% and 19% in the previous two quarters. Following the earnings release, Alphabet's stock price dropped by more than 10% in after-hours trading, as market concerns about the growth of its core advertising business and the commercialization prospects of AI continue to mount.
Source: TechCrunch