Even more ads are coming to Google search, Google says

Google's recent earnings call has sparked significant reaction in the stock market. Their new AI Mode feature, which provides AI-generated summaries of search queries directly on the search results page, is reportedly reducing the company's ad revenue. This issue, known as "zero-click searches," poses a severe challenge to Google Ads, the company's lucrative pay-per-click advertising service.

Google is not planning to retreat from AI despite the revenue losses. Instead, the company has revealed plans to introduce even more advertisements into its AI Mode. Currently, contextual ads are shown alongside AI-generated responses to user queries, but Google intends to incorporate additional ads by substituting sponsored links throughout a user's interaction with the AI Mode chatbot.

Moreover, Google intends to roll out AI Mode ads in international markets soon. While the company assures investors that this strategy will not be a rapid solution, it acknowledges that it will take time for advertisers to recognize the advantages of placing ads in AI Mode.

Google has cautioned that its ad revenue from AI Mode will remain lower than traditional search ads due to the limited number of advertisers currently utilizing this feature. Additionally, it will require some time for advertisers to comprehend the merits of conducting ads in AI Mode. Despite these setbacks, Google remains committed to its AI initiatives, even if it means sacrificing a significant revenue source. In the interim, users can anticipate an increase in advertisements.