Google Q3 Earnings Highlight AI Mode's Influence on Search Ad Growth
· 2h ago · Originally reported by Digiday
Google's third-quarter earnings show that its AI Mode is affecting the growth of search advertising, while the company continues to experience slowing returns from its ad tech business. The report points to a shift in how AI is shaping advertising outcomes.
Why it matters
This matters because Google's use of AI in search advertising could change how ads are targeted and measured, impacting advertisers and the broader digital ad ecosystem.
Explain it like I’m new here
It's like Google using a smarter robot to help pick ads, but it's not making as much extra money as before.
Terms in this story
Ad tech
Ad tech is the software and infrastructure that decides which ad appears where, buys and sells that ad space, delivers the ad, and measures what happened afterwards.
Search advertising
Search advertising is placing paid ads alongside search engine results, triggered by the words people search for and usually charged per click.
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