Google is set to test search and shopping ads within its AI-generated search answers in the United States, following the widespread introduction of the AI Overviews feature at its recent I/O conference.
The ads will be displayed in a “sponsored” section of the AI Overview, determined by the relevance and context of the query, according to a company blog post.
By incorporating AI technology into its search engine, Google aims to extend its dominance beyond traditional search advertising and boost its ad sales, a major revenue stream for the tech giant.
In the first quarter ending March 31, Google reported a 13% increase in advertising sales, amounting to $61.7 billion.
The company plans to continue experimenting with new ad formats and gathering feedback from advertisers.
During the I/O conference, Google highlighted its advancements in AI across its services, including an enhanced Gemini chatbot and improvements to its flagship search engine.
