Google expands AI Search ads globally as core ad growth slows
Google is expanding its AI-powered search advertisements to international markets as it seeks to offset slowing growth in its core search advertising business. Despite a 25% revenue increase, the company is under pressure to monetize its Gemini-powered AI features effectively.
Why it matters
This shift marks a critical transition in how major tech companies monetize generative AI, directly impacting the future of digital advertising and search engine business models.
Google is bringing ads in its AI-powered Search experiences to international markets, betting that generative AI can open up new revenue opportunities even as growth in its core search advertising business slows.
The announcement came Wednesday during Alphabet’s third-quarter earnings call ,as the company reported $127.6 billion in revenue, up 25% year over year. But Search advertising growth continued to decelerate, and Alphabet shares fell 8% following the results.
Google Search revenue grew 12% year over year in the third quarter, down from 17% growth in the second quarter and 19% in the first quarter. The slowdown puts added pressure on Google to turn its expanding AI features into a meaningful source of advertising revenue.
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