TechCrunch reports that Google is expanding its AI search ads to international markets while introducing multi-turn ads and AI mode in the U.S. The company revealed this global rollout on Wednesday during Alphabet's third-quarter earnings call, aiming to boost revenue as growth in its core advertising business slows down.
Key takeaways
- Alphabet reported $127.6 billion in total revenue for the third quarter, which is up 25% year over year.
- Google Search revenue grew by 12% in the third quarter, dropping from 17% in the previous period.
- Philipp Schindler stated that click-through rates for sponsored product listings in AI mode match organic listings.
- Sundar Pichai noted that search queries grew at their fastest year-over-year rate in five years.
How are AI search ads expanding globally?
Google is scaling high-quality ads within AI overviews and AI mode to reach more users and queries across different countries. Philipp Schindler, Google's chief business officer, announced this international expansion to investors on Wednesday alongside the launch of multi-turn ads in the U.S.
According to Schindler, early tests show that these ad formats work well. User research suggests people find the ads relevant, and click-through rates for sponsored product listings in AI mode match those of organic listings. These new options build on Gemini-powered ad formats introduced in May, such as conversational discovery ads and sponsored recommendations.
What does the Alphabet earnings report reveal about search?
Alphabet shares dropped 8% following the earnings announcement as core search advertising growth continued to decelerate. Google Search revenue increased by 12% year over year in the third quarter, compared to 17% in the second quarter and 19% in the first quarter.
Despite the slower ad growth, overall quarterly revenue reached $127.6 billion, and the Google Services division generated $96.3 billion. Sundar Pichai told investors that search queries grew at their fastest year-over-year rate in five years. AI features are changing how people search, driving queries that are three times longer on average than traditional searches. Also, one in five AI mode searches worldwide now involves voice, images, or documents, and visual searches surpassed 50 billion per month.
What happens next for Google?
The slowdown in traditional search ad growth puts heavy pressure on Google to turn its expanding AI features into a reliable source of advertising money. With the Google Cloud division surging 103% to $30.7 billion and the Gemini app reaching one billion monthly users, the company continues to push its AI tools forward. Google also launched its Pixel 11 lineup and released Gemini 4 Argon during the busy quarter.
Frequently asked questions
TechCrunch reports that Google announced the international rollout on Wednesday during Alphabet's third-quarter earnings call.
Alphabet reported total revenue of $127.6 billion for the third quarter, representing a 25% increase year over year.
Google Search revenue grew 12% year over year in the third quarter, which was down from 17% growth in the second quarter.
According to Sundar Pichai, queries in AI mode are three times longer on average than traditional searches.
Google has surpassed 50 billion visual searches per month, according to details shared during the third-quarter earnings call.
Based on reporting by TechCrunch. Read the original article
