The news: Google plans to display ads within its AI-powered Search experience. The ads could appear above and below the company's new experimental Search Generative Experience, which displays AI-generated answers, information, and follow-up links at the top of search results. The rollout comes after Microsoft said it's expanding the presence of ads in the new Bing AI.
How it works: Google plans to experiment with the ads in the AI-powered snapshot and conversational modes of Search, displaying them alongside relevant queries. For example, if a user searches for "hiking backpacks for kids," the AI system will present an ad for a specific backpack, along with tips on choosing the best one for a child. The company plans to test the new ad placements using current ads from traditional Google searches.
Related: Also on Tuesday, Google unveiled a conversational chatbot designed to help brands create ads. Advertisers can input a website and the AI will suggest attention-grabbing headlines, keywords, and images for their ads, according to the company.
Why it matters: The impact of Google's AI search ambitions now extends to advertisers, affecting the $279B search engine advertising market that's dominated by Google. According to Statista, ad spending in the market is forecasted to grow to $389B by 2027.
