Today’s MarketingGoogle says AI Mode ads earn less than search ads
On its earnings call, Google’s chief business officer Philipp Schindler said strong growth in AI Mode queries had an impact because of lower monetization in AI Mode. He said ad experiments have shown promising results and Google is scaling ads in AI Overviews and AI Mode to more users and queries, including multiturn ads in the US. He named currency swings as the single largest driver of search slowing from Q2 to Q3.
Our take
When Google earns less per query, it will push hard to close the gap, and that usually means more ad slots and ads that look more like answers. Expect AI Mode inventory to grow fast and to be cheap at first. Test it now with a small budget and your best converting queries before the price catches up.
