Google has announced its plan to expand advertising within AI-supported search experiences across global markets. This move aims to enhance revenue sources as the growth of its core search advertising business slows down.
The announcement came during Alphabet’s financial results conference for the third quarter of the year. The company reported revenues of $127.6 billion, marking a 25 percent year-over-year increase. However, the results indicated a continued slowdown in search advertising revenue growth. In the third quarter, search revenue rose by 12 percent year-over-year, compared to 17 percent growth in the second quarter and 19 percent in the first quarter.
Philipp Schindler, Google’s Chief Business Officer, explained that the company is working to expand advertising within AI summaries and the AI Mode. This expansion will target more users, search queries, and international markets.
The company confirmed that initial indicators showed the effectiveness of these advertising formats. Click-through rates for AI-supported product listings matched those of traditional listings.
Sundar Pichai, CEO of Google, noted that the number of search queries experienced the fastest annual growth rate in five years. This surge was driven by the increased use of AI tools, which encouraged users to conduct longer, more complex, and diverse searches.
In financial terms, Google’s services segment, which includes the search engine, generated revenues of $96.3 billion, reflecting an 11 percent year-over-year growth. Meanwhile, revenues from Google Cloud surged by 103 percent, reaching $30.7 billion.
This initiative aligns with Google’s strategy to boost commercial returns from AI products amid rising competition and rapid changes in the digital search and online advertising markets.
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