11 days ago
TechCrunch Oct 28, 2026

Google expands AI Search ads globally as core ad growth slows

Google is rolling out its AI-driven Search ads internationally as growth in its traditional search advertising business slows. This expansion was announced during Alphabet’s third-quarter earnings call on October 28, 2026, where the company reported $127.6 billion in revenue, marking a 25% increase over the prior year. However, Google's Search ad revenue growth decelerated to 12% in Q3 from 17% in Q2 and 19% in Q1, prompting a strategic push to monetize AI-powered features more broadly.

According to Google’s chief business officer Philipp Schindler, the company is scaling high-quality ads integrated within AI-powered search overviews to a wider global audience. These AI Mode ads, which include multi-turn interactive ads and conversational formats powered by the Gemini model, will now be available not just in the U.S. but across international markets. Early metrics indicate these ads have click-through rates comparable to organic results, and user feedback suggests they are relevant and effective.

CEO Sundar Pichai highlighted that search queries using AI Mode are now three times longer on average and often include voice, image, or document inputs. Google has also seen the fastest growth in search queries in five years, attributing this surge to new AI features that encourage more complex and personalized user interactions. Additionally, Google Search has surpassed 50 billion visual searches per month, illustrating the expanding diversity of search modalities.

This announcement coincides with Alphabet’s broader push into AI, including the recent release of Gemini 4 Argon, reaching 1 billion monthly users on the Gemini app, and launching the Pixel 11 lineup. Google's efforts to evolve Search with generative AI ads and interactive experiences signify a major shift aimed at offsetting the slowing growth of core ad revenues by leveraging new monetization opportunities fueled by AI technologies.

0
0 Read source
Share this post
Facebook Twitter LinkedIn

Discussion

0 comments

No comments yet

Start the discussion with a take, question, or market read.