Google Expands AI Mode Ads as Search Revenue Growth Slows
More AI searches are bringing new ad placements, but Google's Q3 remarks gave no figure for traffic to websites.
Google is expanding ads in AI Mode to more countries, even though, by its own account, AI Mode currently monetizes at a lower rate.
So what will AI search bring you?
Ads move into more markets
Outside the U.S., this is where you’ll see the ads, according to Search Engine Roundtable’s report on the rollout:
- Now, more countries, including: Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore
- Planned for Q4: Brazil, Mexico and the U.K.
In the U.S., you can now see ads in follow-up questions within AI Mode. Google calls them multiturn ads and labels them “Sponsored.”
In AI Mode, a search can turn into a conversation. When it has commercial relevance, ads can appear within or alongside the responses, including follow-up questions.
Google says sponsored and organic product listings in AI Mode click at similar rates, but that’s U.S. data from a short period in August and September, as Search Engine Journal reported.
AI Mode monetizes at a lower rate
On Alphabet’s Q3 earnings call, CBO Philipp Schindler pointed to lower monetization in AI Mode and said it had an impact.
He didn’t put a number on it. Search Engine Journal says he didn’t say what it was lower than. Search Engine Roundtable reports he said AI Mode ads earn less than traditional search ads.
Currency movements, he said, were the single largest driver of the slowdown.
How much lower is AI Mode? Google didn’t say, so you can’t size the gap yourself.
Still, usage keeps growing fast.
CEO Sundar Pichai made two points, according to TechCrunch’s earnings-call coverage:
- Search queries grew at their fastest year-over-year rate in five years
- AI Mode queries are three times longer on average than traditional searches
AI Overviews are different.
Google has said ads there earn at the same rate as comparable searches without an overview, but that tells you nothing about AI Mode ads.
Search revenue growth slows
Search revenue growth is slowing. Here are the numbers you’ll want, from Search Engine Journal’s report:
- Q1: 19% year over year
- Q2: 17%
- Q3: 12%
That said, Google also cited currency movements and changes in retail and media spending.
Why it matters
Already running Google campaigns? Your Search, Shopping and Performance Max campaigns may be eligible to show in AI Mode.
Search Engine Journal says you can’t opt out of AI Mode separately. Standard reports lump its results in with the rest of your Search activity.
So check your numbers before you shift budgets. Google’s aggregate reporting may not give you a clear AI Mode comparison, so if your conversions change while clicks hold steady, you won’t easily see why.
If you publish, referral traffic is still an open question. Google talked about query growth and ad revenue but gave no Q3 figure for clicks to websites from AI features.
Will more AI Mode use mean more visits, fewer visits or a different mix of visitors? Nobody has said.
My take: Google’s query growth doesn’t prove your site will get more value from Search. I’d check your own Search Console clicks, landing page engagement and conversions.
Then, if your impressions are up and your traffic is down, look at which queries are changing.
Common Questions
Are ads in Google AI Mode available in every country?
No. Ads in AI Mode already run in the U.S. and are now scaling to ten more markets (Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore). Google plans more locales in Q4 2026, including Brazil, Mexico and the U.K.
Can advertisers opt out of AI Mode ads separately?
No, according to Search Engine Journal: all existing Search, Shopping and Performance Max campaigns are eligible by default and cannot opt out separately. Reports lump AI Mode results in with the rest of your Search activity.
Do AI Mode ads earn as much as regular Search ads?
Google hasn’t given a figure. Schindler pointed to lower monetization in AI Mode, and the reports differ on what it was lower than, so you can’t work out the gap from public information, whether you’re an advertiser or a publisher.
