Google is actively looking to insert different types of ads in its generative AI search

Google confirmed on its earnings call that it is working on different ad formats for its generative AI-powered search experience — Google shared some ideas earlier this year and the mention in the earnings call could indicate that a rollout could happen sooner rather than later. This project is particularly important for the company as the majority of Google’s revenue still comes from ads despite several attempts to diversify its revenue sources through Google Cloud, services, and other bets including hardware.

In its earnings call for the third quarter of 2023, Alphabet and Google CEO Sundar Pichai said that the company plans to experiment with a native ad format suitable for its Search Generative Experience (SGE) that is “customized to every step of the search journey.”

While it’s early days for its generative AI-based search experience, Pichai also said that he feels confident about the shift from traditional search to a new one.

“We’ve always worked through these transitions, be it from desktop to mobile, or from now mobile to an AI-enhanced experience. And so it’s nothing new, and I feel very comfortable that as we go through it, the strength of our teams — both on the organic side as well as on the ad side — to drive the right experience for users, including ads, will pay dividends,” he said on the earnings call.

Google introduced its AI-powered search experience during Google I/O, the company’s developer conference that took place in May. The feature was first made available to users in the U.S. and later expanded to users in Japan and India in August.

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