Google takes AI Mode ads global as Search growth slows

Google is taking its advertising deeper into AI-generated search results just as growth in its core search business slows. On its Q3 earnings call on 28 October, the company said ads in AI Mode will go global for the first time, alongside multi-turn ads and AI Mode ads in the US. Ads within AI Overviews are also being scaled to more users and queries. The full details are in the TechCrunch report.

The pressure shows in the numbers. Google Search revenue grew 12% year on year in Q3, down from 17% in Q2 and 19% in Q1. Alphabet's total revenue reached $127.6 billion, up 25%, but Google Services, which includes Search, rose 11% to $96.3 billion. Alphabet shares fell 8% after the results.

Google's case for the new formats rests on early engagement. Philipp Schindler, Google's chief business officer, said click-through rates for sponsored product listings in AI Mode are already comparable to those for organic listings. He described the expansion this way: "This includes taking our monetization footprint global for the first time."

The timing and list of markets for the international rollout have not been confirmed, and the article names no specific countries. Google has given no detail on how quickly the expansion will reach each market, so the scope of the change outside the US remains unclear.

The money case is clear from the figures. Search growth has fallen from 19% in Q1 to 12% in Q3, and Google is now putting ads into AI Mode worldwide while scaling them within AI Overviews. If Schindler's click-through comparison holds as the formats reach more users and queries, sponsored listings in AI Mode will be drawing clicks at a rate close to organic results. That is the number to test, and it currently comes from Google itself.

The market's reaction suggests investors are focused on the slowdown rather than the headline total. Alphabet's 25% revenue growth did not stop the 8% fall in its shares, so the Search and Services lines are where the scrutiny sits. Watch for the markets and timing of the international rollout, which Google has not yet confirmed, and for whether Search growth stabilises as the new ad formats expand.