Google expands AI Search ads globally as core ad growth slows
The announcement came alongside parent company Alphabet's third-quarter earnings report, which saw revenue grow 25% year over year to $127.6 billion.
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Google is expanding advertisements within its AI-powered search experiences to international markets for the first time. This matters because the company's traditional search advertising growth has slowed significantly, declining from 19% year-over-year growth in the first quarter to 12% in the third quarter, creating pressure to develop new revenue sources. Early testing shows that click-through rates for sponsored product listings in AI mode are comparable to organic listings, and users find the ads relevant. The expansion follows Google's May announcement of new AI-powered ad formats and comes as the company reports that search queries in AI mode are three times longer than traditional searches.
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