Google's new ad format could boost its revenue, as search ads are its largest revenue generator. The company is also exploring other ways to use AI to enhance its ads business, such as updated image-generation tools to help advertisers cut production costs. Google also plans to test a new search ad experience that guides people through complex purchase decisions. Despite the introduction of ads in AI Overviews, conventional search ads will remain crucial to Google's business.
Key takeaways:
- Google plans to start including ads in its AI-generated search results, known as AI Overviews, extending its dominance in search advertising into a new era.
- The ads will appear in a section clearly labeled as 'sponsored' and will be relevant to both the query and the information in the AI Overview.
- Google is also exploring other ways to use AI to boost its ads business, including updated image-generation tools to help advertisers reduce production costs and a new search ad experience that guides people through complex purchase decisions.
- Despite the integration of ads in AI Overviews, conventional search ads will remain important to Google, as AI-generated answers will only appear on select queries.