Google brings ads back

After launching AI Overview last week, at its I/O conference, Google has now announced that it plans to bring ads to its AI-powered search results.

AI Overview uses AI to generate direct answers and summaries to search queries

at the top of search results pages, meaning users don’t have to click on links to find answers themselves.

Google now plans to start testing Search and Shopping ads within AI Overviews for US users and marketers.

What will the ads look like, and when will they appear?

Ads will be clearly labeled as ‘Sponsored” and they’ll only show when they’re relevant to the search query.

For example, if a user typed in “How do I get creases out of my shirt” they would see a new “sponsored” section, underneath the AI-generated search result summary, with  a carousel of ads for crease spray.

Google claims that early tests show that users are finding these ads helpful and that the clicks generated are of higher quality, meaning users are spending more time on the linked websites, which is good news for advertisers.

US advertisers that run Google ads will automatically be entitled to run ads within AI Overview, and Google wants them to give feedback so they can “continue to test and learn new formats.”

Why is Google doing this?

The whole purpose of the AI search feature was to streamline the search process, making it quicker and easier for users to find what they’re looking for. Now, with the return of ads, many fear it will clutter up the experience, making it just as convoluted as its traditional search engine.

However, they need to bring ads back because Google’s revenue model largely depends on people clicking on ads related to their searches, and the AI summaries are stopping people from clicking on advertisers' websites, which means a reduction in traffic for these businesses and a drop in revenue for Google.

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