Google Will Show Ads On Search Generative Experience: Report

Although Google’s generative search experience is still in development, the company plans to integrate ads into the new experience, generating revenue as AI-powered search attracts more users. Here’s what Google has in mind for ads on Search Generative Experience.

Google reveals SGE-related plans during quarterly earnings calls

During its quarterly earnings call on October 24, 2023, Google revealed that it was ready to integrate ads with Search Generative Experience. Google’s chief commercial officer, quoted by Benzinga, says it is extremely important for the company to give advertisers an opportunity in this new generative search experience. However, this could have advantages and disadvantages, which will manifest themselves over time.

First, Google’s competitors, like OpenAI’s ChatGPT, don’t display ads in the accessible version of their AI-enabled chatbot. Neither does Snapchat’s My AI, another chatbot available to millions of users around the world. By not displaying ads in their AI search interface, these platforms allow users to consume more information on the topic they are searching for without being distracted by ads.

Google depends on advertising revenue for the majority of its profits

However, with Google’s ad-enabled EMS, users may be distracted by sponsored results or product ads related to the query they are searching for. However, this was not entirely unforeseen since advertising generates approximately 77.7% of the company’s total revenue, allowing it to experiment in other areas. In the September 2023 quarter, ads brought in about $59 billion for the company.

Although SGE is optional for users, it will become available to more people in the coming months, at which point the company may begin integrating ads to generate profits. Enabling the feature improves the overall search experience. Still, using AI to answer everyday queries requires a learning curve because not everything these language models suggest is accurate and one should always do fact-checking before relying on these results.

You can follow Smartprix on Twitter, Facebook, Instagram and Google News. Visit smartprix.com for the latest news, reviews and tech guides