AI Brings Divergence in Advertising Business: Meta Ad Revenue Grows 26%, Google Search Up Only 12%
Meta's third-quarter ad revenue was $63.1 billion, up 26% year over year, while Google's search and related ad revenue for the same period was $63.4 billion, up 12% year over year; the 14-percentage-point growth gap is the largest margin by which Meta has led Google since 2021. Meta has introduced AI tools into its ad management system, and its Chief Financial Officer Susan Li said advertisers using the relevant tools saw conversion rates rise by nearly 5% and ad spending increase by 9%. Google, meanwhile, faces AI assistants such as ChatGPT and Claude diverting search demand, and its own AI Overviews and AI Mode have also changed how search results are presented.
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The original article uses the growth-rate gap between the two companies' ad revenue and conversion-rate data to illustrate the divergent impact of AI on ad placement and search entry points.
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AI Brings Divergence in Advertising Business: Meta's Ad Revenue Grows 26%, Google Search Up Only 12% Phoenix Tech Download the App for Exclusive Early Access November 02, 2026 18:04:04 From Beijing Updated November 02, 2026 17:50:43
Phoenix Tech News (Editor/Song Shumei) On November 2, artificial intelligence is changing the competitive landscape of the internet advertising market. Meta, leveraging AI technology to optimize ad targeting and delivery effectiveness, continues to accelerate its advertising business; by contrast, as AI chatbots such as ChatGPT and Claude gradually become new entry points for users to obtain information, Google's search advertising business faces growth pressure.
According to CNBC, Meta's third-quarter advertising revenue reached $63.1 billion, up 26% year over year; Google's search and related advertising revenue for the same period was $63.4 billion, up 12% year over year. The two are now close in revenue scale, but their growth rates differ by 14 percentage points, the largest gap by which Meta has led Google since 2021.
Meta's growth is mainly due to AI technology's improvement of advertising delivery efficiency. The company introduced AI tools into its ad management system to help advertisers optimize ad creative and precisely reach potential consumers. Meta Chief Financial Officer Susan Li said advertisers using the relevant AI tools saw conversion rates increase by nearly 5% and ad spending rise by 9%.
Google faces another challenge. AI assistants such as ChatGPT and Claude are changing users' information retrieval habits, and some traditional search demand may be diverted by chatbots. In addition, Google's own AI Overviews and AI Mode are also changing the way search results are presented, allowing users to obtain information without clicking on traditional web links.