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DL: Google’s ads leadership says the company does not have immediate plans to introduce advertising into the Gemini AI assistant app, instead focusing monetization efforts on AI-powered search experiences like AI Overviews and AI Mode within Google Search. Google sees search and Gemini as serving different purposes: search helps users discover information and commercial options, making it a natural fit for ads, while Gemini functions more as a personal assistant focused on creation and task completion. Introducing ads into standalone AI assistants remains risky, as poor execution could alienate users in an increasingly competitive market, and Google’s established search ad business gives it more flexibility to delay monetizing Gemini compared with rivals under pressure to generate revenue from their AI investments.
Early results from ads in AI search appear promising, with engagement rates similar to traditional search ads and broad advertiser adoption of AI-powered ad placement tools. However, advertising within conversational AI Mode poses new challenges, as ads shown too early in user interactions can feel intrusive and undermine trust. Google is therefore experimenting cautiously, including testing formats like personalized “Direct Offers” that appear closer to purchase decisions, alongside new shopping tools that allow transactions directly within AI experiences. The company’s approach suggests AI advertising will evolve gradually, prioritizing user intent and timing over immediate monetization.
Read More: Business Insider
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