Google expands AI Mode ads as search tool generates less revenue
The rollout covers 10 markets, with more planned for Q4 2026. US users will also begin seeing ads in follow-up queries.
Google is expanding advertising in its Gemini-powered AI Mode internationally after acknowledging that the search tool generates less revenue than traditional Search. During Alphabet’s Q3 earnings call, Google’s Philipp Schindler said increased use of AI Mode had affected results because of its lower monetization.
The company said it is extending AI Mode advertising to Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. It plans further expansion in Q4 2026, including to Brazil, Mexico and the United Kingdom. In the US, Google will begin placing ads in follow-up queries.
Schindler said advertising tests had produced promising results, prompting Google to broaden ad coverage across AI Overviews and AI Mode. Google also said its research found users considered AI Mode ads relevant, and that sponsored product listings were already attracting click-through rates similar to organic listings.
The expansion comes as Google shares continued falling on October 29 following weaker-than-expected Q3 earnings. The stock was trading around US$280 after a 12% decline that erased more than US$500 billion in market value. Search advertising still accounts for roughly half of Google’s total revenue.
