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Google is exploring introducing AI product comparisons, offers, and sponsored links into the shopping journey
Beating Newsflash:AI Alphabet’s recent earnings report shows that Google Search query volume’s year-on-year growth rate reached its 5-year high, but AI Mode monetization remains relatively low, weighing on Search revenue performance. Google’s third-quarter Search revenue grew year on year by 12%, below market expectations; revenue for the Google Services segment, which includes Search, was 96300000000 USD, also below analysts’ expectation of 98500000000 USD.
Google Chief Business Officer Philipp Schindler said that AI Mode query volume is growing strongly, but monetization is currently relatively low. Queries in AI Mode are on average about 3 times as long as those in traditional Search, with about one-fifth of queries completed via voice, images, or documents.CEO Pichai said the company will prioritize improving the Search experience before gradually advancing monetization.
To find new sources of revenue growth, Google is exploring introducing product comparisons, offers, and sponsored links into the AI shopping journey, allowing AI agents to gather information and filter products while preserving users’ ability to compare brands, prices, and services. Google has previously tested displaying offers in travel planning and adding clearly labeled sponsored links to product lists generated by AI, and plans to expand ads in AI Mode and AI Overviews to more queries.
Pichai also said Google will further bring agent capabilities into Search and Gemini, and expand them to products including Chrome, Android, and Workspace.
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