Google announced on Tuesday that it will begin testing search and shopping ads within its AI-generated answers in the U.S.
These ads will be featured in a ‘sponsored’ section within AI Overviews, appearing based on the relevance of the query’s information. The move comes shortly after the widespread rollout of the AI Overviews feature at Google’s annual I/O conference.
With this initiative, Google aims to expand its advertising revenue by leveraging generative AI technology alongside its traditional search advertising dominance.
In the first quarter of the year, Google reported a 13% increase in advertising sales, amounting to $61.7 billion. The company plans to continue experimenting with new ad formats and gathering feedback from advertisers.
At the recent I/O conference, Alphabet demonstrated its commitment to integrating AI across its businesses, showcasing advancements such as the Gemini chatbot and enhancements to its search engine.
