Google's AI Mode Cuts Search Ad Growth; Chatbot Ad Formats Multiply
· 2d ago · Originally reported by AdExchanger
Google's stock fell more than 10% after its Q3 earnings call, driven largely by a slowdown in search advertising growth attributed to its own AI Mode product. The piece frames the shift as a gain for Meta and notes that chatbot ad formats are proliferating across the industry.
Why it matters
Search ads are the backbone of Google's business, so an AI-driven slowdown there signals a real reallocation of digital ad budgets toward rivals and new surfaces. It shows how quickly generative AI is reshaping where advertisers reach people.
Explain it like I’m new here
Google built an AI answer box that keeps people from clicking search links, and it's like a store putting up a sign that sends shoppers to a different mall instead of its own aisles.
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