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On October 30, 2026, Google announced at Alphabet's third-quarter earnings call that it will expand AI Mode ads to 10 markets including Australia, Canada, and India, and plans to enter Brazil, Mexico, and the UK in the fourth quarter of 2026. Google also acknowledged that monetization of Gemini-driven AI Mode is lower than that of traditional search, and that strong growth in query volume actually weighed on overall revenue performance; advertising experiments show that in AI Mode, the click-through rates of sponsored product listings and organic product listings are already similar. Philipp Schindler, Senior Vice President and Chief Business Officer of Alphabet, said Google plans to place more ads in AI Mode, expanding ads to international markets for the first time, and to launch multi-turn ads in the US that change as the conversation progresses, while also expanding ads in AI Overviews. In the quarter, Google Search and other advertising revenue grew 12% to $63.3 billion, a slower pace than the previous quarter. Around the release of the earnings report, $GOOG fell about 12%, with market value shrinking by more than $500 billion; reports said the main reason was third-quarter earnings falling short of expectations, rather than AI Mode itself.
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Google will expand ad placements in AI Mode, as AI search slows revenue growthDevelopments
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- Source:9to5Google
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Oct 30
MediaNama
Google will expand ad placements in AI Mode, as AI search slows revenue growth
On Alphabet's Q3 2026 earnings call, Senior Vice President and Chief Business Officer Philipp Schindler said that the strong growth in AI Mode queries dragged down search revenue due to lower monetization rates. Google plans to place more ads in AI Mode, expanding ads to international markets for the first time, and launching multi-turn ads in the U.S. that change as the conversation progresses, while also expanding ads in AI Overviews. In the quarter, Google Search and other advertising revenue grew 12% to $63.3 billion, a slower pace than the previous quarter; Schindler said exchange rates were the single largest factor in the search deceleration relative to the second quarter, and some retail advertisers in Asia-Pacific were also affected by the EU's removal of the low-value parcel tariff exemption. Pichai said AI Mode queries are on average three times longer than traditional searches, one in five AI Mode searches worldwide uses voice, images, or documents, and the Gemini App has reached 1 billion users.
PlatformerFirst-party
Google and Reddit Both Stumble in Earnings: AI Search Is Eroding Traffic and Ad Revenue
Alphabet's stock fell 12.6% in a single day, wiping out about $500 billion in market value, while Reddit's shares dropped 15% the same day; both companies pointed to the impact of AI search on traffic and ad monetization. Google Chief Business Officer Philipp Schindler acknowledged that growing usage of AI Mode is actually weighing on revenue, because it monetizes less effectively than traditional search; Reddit, meanwhile, said traffic from search has declined noticeably, that fourth-quarter daily active users could fall by a double-digit percentage, and that it will push users to log in. Google Search and related advertising revenue still grew 12% year over year to $63.35 billion, but the growth rate slowed markedly from 19% in the first quarter.
CNET
Google Expands AI Mode Ads to 10 Countries and Introduces Multiturn Ads
Google is expanding ads in AI Mode to 10 new countries, including Australia, Canada, India, Kenya, and Singapore, and plans to enter Brazil, Mexico, and the UK later this year. In the US, Google introduced "multiturn ads," which can display ads based on commercial relevance in follow-up questions within AI Mode. Google Chief Business Officer Philipp Schindler said user queries are shifting to AI Overviews and AI Mode, causing search ad revenue growth to slow in the third quarter.
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9to5Google
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.
Thurrott
Google Search AI Mode ads expand to 10 new markets
After the initial US test, ads in Google Search's AI Mode are being added in 10 new markets: Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore, and US users will also see so-called "multi-turn ads" in follow-up questions. Google says research shows users are relatively receptive to ads in AI Mode, that click-through rates for sponsored and organic product listing items are already similar, and stresses that these ads do not affect Google AI's generated organic answers. By the end of the year it will also cover Brazil, Mexico and the UK, while a week ago OpenAI had just pushed ChatGPT ads into 26 new markets, totaling 89 countries.
Oct 29
TechCrunch AI
Google Expands AI Search Ads to Global Markets
At Alphabet's Q3 earnings call, Google announced it would expand ads in AI Mode to international markets and launch multi-turn conversational ads. Alphabet's quarterly revenue was $127.6 billion, up 25% year over year, but search ad revenue growth slowed from 19% in Q1 and 17% in Q2 to 12%, and the stock fell 8% after the earnings report. Google says the click-through rate on sponsored product listings in AI Mode is now comparable to organic results, and the average AI Mode query is 3 times longer than traditional search.
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