Alphabet Expands AI Search Advertising Globally Amid Decelerating Core Search Growth
Alphabet reported third-quarter revenue of $127.6 billion, a 25% year-over-year increase, but saw its shares drop 8% due to slowing growth in its core search advertising business. Google Search revenue grew by 12%, a notable deceleration from the 17% and 19% growth rates seen in previous quarters. To counter this slowdown, Google is expanding AI-powered search ads into international markets. Chief Business Officer Philipp Schindler noted that click-through rates for sponsored product listings within AI Overviews are performing comparably to organic listings. The company is betting on generative AI and multimodal queries—which are significantly longer than traditional searches—to drive new revenue streams.
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Topics: AI Overviews Ads Alphabet Q3 Earnings Generative AI Monetization Google Search Advertising
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Part of the story Google Reports Lower Monetization in AI Mode Ads Amid Global Expansion (2 articles)