With Google now injecting "sponsored" links directly into AI follow-up queries, traffic to online publishers will suffer even more.
If you happened to listen to Alphabet’s quarterly earnings call on Wednesday, you might have heard that searches are up, but ad revenue is down. According to Google Chief Business Officer Philipp Schindler, search ad revenue growth slowed in the third quarter of 2026 because user queries are migrating to AI Overviews and AI Mode, which suffer from “lower monetization.”
You actually know how this works. When you type a question into Google, a summarized AI response often appears immediately, reducing the classic ad-clicking behavior further down on the page, which generates Google’s core revenue.
Now, the tech giant is expanding how and where we see ads when using AI Mode during searches. Google is scaling ads in AI Mode to 10 new countries (including Australia, Canada, India, Kenya and Singapore), with plans to launch in Brazil, Mexico and the UK later this year.
In the US, Google is launching what it calls “multiturn ads,” allowing ads to appear directly within follow-up queries in AI Mode when a search or conversation has “commercial relevance.” Take, for example, if you start a search with “How does a smart fridge work,” and follow up with “What are the best-selling smart fridges?” You could then see refrigerator ads in sections labeled “sponsored.”
Google said that “multiturn ads” can better target what a user wants in a product because AI Mode gathers more information during a back-and-forth conversation.
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