11 months ago
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Although Google’s Search Generative Experience is still in development, the company plans to integrate advertisements into the new experience, generating revenue as AI-enabled Search brings in more users. Here’s what Google has in mind for ads on Search Generative Experience.
Google Reveals Plans Related To SGE During Quarterly Earnings Calls
During its quarterly earnings call on October 24, 2023, Google revealed that it is ready to integrate ads to Search Generative Experience. Google’s Chief Business officer, as quoted by Benzinga, says that giving advertisers an opportunity in this new Search Generative Experience is extremely important for the company. However, this could have pros and cons, which will pan out over time.
First, Google’s competitors, like OpenAI’s ChatGPT, do not show advertisements in the accessible version of their AI-enabled chatbot. Neither does Snapchat’s My AI, another chatbot available to millions of users around the world. By not showing advertisements in their AI search interface, these platforms allow users to consume more information about the topic they’re researching without being distracted by ads.
Google Relies On Ad Revenue For Majority Of Its Profit
However, with Google’s ad-enabled SGE, users might be distracted by sponsored results or product ads related to the query they’re searching about. Nonetheless, this wasn’t entirely unforeseen as advertisements bring in about 77.7 percent of the company’s total revenue, allowing it to experiment in other fields. During the September 2023 quarter, ads brought in about $59 billion for the company.
Although SGE is optional for users, it will be available to more people in the coming months, which is when the company might start integrating advertisements to bring in some profit. Enabling the feature does improve the overall search experience. Still, there’s a learning curve with using AI to tackle daily queries, as not everything these language models suggest is accurate, and one should always conduct a fact-check before relying on these results.
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