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Google Expands Ad Placements to AI Overviews

The new feature involves the inclusion of Search and Shopping ads within the AI Overviews, which appear at the top of search results for intricate queries.

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has started integrating advertisements into its AI-generated search summaries, known as AI Overviews. This development was announced at the Google Marketing Live 2024 event.

The new feature involves the inclusion of Search and Shopping ads within the AI Overviews, which appear at the top of for intricate queries. These ads will be displayed in a designated “sponsored” section when they are relevant to the user's search query and the AI-generated summary.

Automatic Eligibility for Advertisers

Advertisers using existing Search, Performance Max, and Shopping campaigns do not need to take any additional steps, as their ads will automatically qualify for inclusion in these AI Overviews.

For instance, AI could analyze photos of users' furniture to suggest short-term storage options. By launching more sophisticated AI-enabled formats, Google aims to command a premium compared to traditional ad slots.

Google CEO Sundar Pichai has downplayed the risks to the company's advertising business from new search experiences, expressing confidence in Google's ability to adapt to these changes as it has in the past.

Conventional search ads will continue to play a crucial role for Google, as AI-generated answers will only appear for specific queries. Google is also exploring other to enhance its advertising business, such as updated image-generation tools to help advertisers reduce production costs.

While this move could be beneficial for advertisers by enhancing the visibility of their ads, it also raises concerns about potential decreases in click-through rates to their websites. This shift could signify a reduction in traffic as Google aims to provide comprehensive information directly on the search results page.

Google CEO Sundar Pichai has emphasized its commitment to directing valuable traffic to publishers and creators, suggesting a balanced approach between and external web sources.

Monetizing AI Investments

This update marks one of Google's initial efforts to monetize its AI investments in consumer products like Search. According to Google, early user testing has shown that people find the AI Overviews useful and are exploring a wider range of websites through the provided links.

The introduction of ads into AI Overviews is a new venture for Google, occurring at a time when AI technology is both costly and poses a potential threat to its core Search ad business model. Google's smaller competitor, Bing, has already experimented with product ads in its Bing Copilot search results, although recent tests did not show any ads in Bing's AI Overview counterpart.

The growth of Google's cloud and hardware businesses has made the company less reliant on search advertising revenue. In 2019, over 60 percent of Alphabet's revenue came from search ads, but this figure dropped to about 57 percent last year. In 2023, Google's overall profit reached nearly $74 billion.

SourceGoogle
Markus Kasanmascheff
Markus Kasanmascheff
Markus is the founder of WinBuzzer and has been playing with Windows and technology for more than 25 years. He is holding a Master´s degree in International Economics and previously worked as Lead Windows Expert for Softonic.com.

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