Google Globalizes AI Search Ads as Core Revenue Growth Cools
Google is rolling out advertising within its AI-powered Search tools to international markets, seeking fresh revenue streams as core search ad growth slows down.
Google is expanding advertisements inside its AI-driven Search features to international regions. The tech giant aims to generate new income streams as expansion in its traditional search advertising sector continues to cool.
During Alphabet's third-quarter earnings call, the company posted $127.6 billion in revenue, marking a 25% increase compared to the previous year. However, growth in Search advertising slowed further. Google Search revenue rose 12% year over year during the third quarter, following 17% growth in the second quarter and 19% in the first quarter. This deceleration places increased pressure on Google to successfully monetize its growing artificial intelligence capabilities. Alphabet shares dropped 8% following the financial report.
Philipp Schindler, Google's chief business officer, stated during the investor call that the company is scaling high-quality ads inside AI overviews and AI mode for a broader audience. This initiative introduces monetization footprints internationally for the first time, alongside multi-turn ads and AI mode in the United States. Early metrics indicate promising performance, with click-through rates for sponsored product listings in AI mode matching those of organic listings. User research similarly points to favorable audience perception regarding ad relevance.
Sundar Pichai, Google's CEO, reported that Search queries experienced their highest year-over-year growth rate in five years, though specific figures were omitted. Pichai attributed this shift to artificial intelligence features altering search behavior, resulting in extended and more complex queries. Searches conducted in AI mode average three times the length of standard searches. Furthermore, one out of every five AI mode searches globally utilizes voice, images, or documents, while visual searches have exceeded 50 billion per month.
Alphabet’s Google Services unit brought in $96.3 billion, reflecting an 11% year-over-year increase, while Google Cloud revenue climbed 103% to reach $30.7 billion. These financial figures follow a period featuring the launch of Gemini 4 Argon, the expansion of the Gemini application to one billion monthly users, and the release of the Pixel 11 hardware lineup.
What it means for developers
As major tech platforms like Google aggressively commercialize their AI features and scale multimodal search interactions, developers building applications are increasingly looking for flexible ways to integrate frontier models into their own software. For teams seeking cost-effective experimentation, developers can try top AI models cheaply through one API at https://apixoai.online. Keeping pace with these rapidly shifting AI capabilities requires scalable and affordable infrastructure as consumer search habits evolve.
Financial performance and metrics
Overall, the latest financial results highlight a period of transition for Alphabet. While traditional search monetization experiences a gradual slowdown, cloud computing and AI-driven engagement metrics demonstrate substantial momentum. As users adopt longer, multimodal queries involving voice and imagery, the technological requirements for processing these interactions continue to expand globally.
Source: Google expands AI Search ads globally as core ad growth slows — TechCrunch AI. Written by the Apixo team from that report.
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