Google expands AI Mode ads and acknowledges lower revenue per query
🎧 Listen to this story
Google announced the international expansion of ads in AI Mode, including Australia, Canada, India and other markets. According to Tecnoblog, Brazil, Mexico and the United Kingdom are expected to join the expansion in the fourth quarter of 2026; in the United States, the company is also testing ads during successive questions in the same conversation.
The company acknowledged that AI Mode queries still generate less revenue per search than traditional queries, partly because many occur early in the purchase decision. Search advertising revenue grew 12% in the third quarter, down from 17% in the second quarter and 19% in the first. Google says AI Mode queries are three times longer on average, and Philipp Schindler said click-through rates for sponsored product listings are already comparable to those for organic results. Alphabet reported $127.6 billion in quarterly revenue, up 25% year over year.
Why it matters · editorial interpretation
The international expansion comes as Google acknowledges that AI Mode queries generate less revenue per search than traditional ones, creating a monetization challenge even as advertising revenue grows. Testing ads in successive questions could expand the points where ads appear in conversations.
Sources
Business