Google Admits AI Mode Monetization Rate Is Low, Will Expand Ads Globally Amid Stock Price Decline
Google acknowledged at the Alphabet Q3 earnings call that the Gemini-driven AI Mode has a lower monetization rate than traditional search, and its strong query growth has instead dragged down overall revenue performance. Google said ad experiments show that in AI Mode, the click-through rates of sponsored and organic product listings are now similar, and it is expanding AI Mode ads to 10 markets including Australia, Canada, and India, with plans to enter Brazil, Mexico, and the UK in Q4 2026. Around the earnings release, $GOOG fell about 12%, with market value shrinking by more than $500 billion; reports say the main reason was Q3 earnings falling short of expectations, not AI Mode itself.
Google acknowledged at the Alphabet Q3 earnings call that the Gemini-driven AI Mode has a lower monetization rate than traditional search, and its strong query growth has instead dragged down overall revenue performance. Google said ad experiments show that in AI Mode, the click-through rates of sponsored and organic product listings are now similar, and it is expanding AI Mode ads to 10 markets including Australia, Canada, and India, with plans to enter Brazil, Mexico, and the UK in Q4 2026. Ar
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