Google Developing New Ad Formats for AI Search, Expects Smooth Transition from Traditional Search

Google confirmed it is working on new ad formats for its AI search experience, indicating a rollout could happen soon. This is important as ads still drive most of Google's revenue.

CEO Pichai said they feel confident about the shift from traditional to AI search. He believes their ad and organic search teams can drive the right experience for users, including ads.

Google first showed the AI search experience at I/O in May. It was launched in the US, then expanded to Japan and India in August.

Google already shows ads above/below AI search results. But it has also shown examples of customized ads within the AI results.

For Q3 2023, Google's revenue was $76.69 billion. Ads accounted for $59.65 billion. Cloud revenue was below expectations at $8.41 billion.