Google Ads in AI Search Results

(Reuters) – Google will begin testing search and shopping advertising in its AI-generated answers in the United States, the Alphabet-owned corporation announced on Tuesday, just days after officially introducing the AI Overview feature at its annual I/O conference.

Ads will show under a’sponsored’ area of AI Overview based on the relevancy and information of the inquiry, according to the company’s blog post.

Google has been seeking to expand its influence beyond traditional search advertising into burgeoning generative AI technology.

It intends to enhance ad revenues, a major source of revenue for the tech behemoth, by incorporating AI into its search algorithm.

Google reported a 13% growth in advertising sales, reaching $61.7 billion in the first quarter ending March 31.

The company stated that it would continue to explore and learn new ad formats, with feedback from advertisers.

Last week, at its I/O conference, Alphabet demonstrated how it is leveraging AI throughout its businesses, including a beefed-up Gemini chatbot and enhancements to its valued search engine.