Google Expands AI Ads in Search Results
In #TechNews
Alphabet’s Google has started a broad rollout of advertisements embedded within its AI-generated search summaries, which are displayed at the top of search results. This move aims to demonstrate that costly AI projects can generate revenue, addressing concerns from investors. These AI summaries, known as "AI Overviews," will now show ads alongside search results on the mobile app for users in the United States.
The expansion comes after some investors expressed concern that Google’s reliance on generative AI could undercut its highly profitable search business. In May, the company began testing ads within these summaries, and the feature is now being widely released. Sponsored content will appear above, below, and within the AI summaries, offering product recommendations related to search queries. For example, a search for stain removal tips could yield relevant ads for laundry products like Tide and OxiClean.
Despite the inclusion of third-party content in its AI summaries, Google will not share ad revenue with publishers whose material is cited. Google’s AI Overviews, first introduced in May, have faced criticism for sometimes displaying inaccurate information and reducing the need for users to visit the original websites, which depend on clicks for ad revenue.
Google’s dominance in the search and ad tech industries has also drawn scrutiny from regulators. The U.S. Department of Justice (DOJ) filed two antitrust cases against the tech giant, alleging illegal monopolization of the search business. Possible remedies include requiring Google to share valuable search data with competitors or breaking up the company. A similar case against Google’s advertising division concluded last month.
Additionally, Google announced plans to add in-line links to sources within AI-generated summaries, a change that has reportedly driven more traffic to websites during testing. The company will also introduce AI-sorted search results for American users, starting with recipe suggestions, and has expanded Google Lens to process video and voice inputs.
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