# Google Struggles to Monetize AI Search Like Traditional Search AI integration boosts query volume but lags in generating equivalent advertising revenue growth. - **Source:** [The Verge](https://www.theverge.com) - **Published:** 2026-11-04 - **Topic:** [Marketing](https://brifing.si/c/marketing) - **Original article:** - **On Brifing:** https://brifing.si/s/2a3d9f5a-0b45-41c8-ac17-86bfa9cae754 ## Revenue Growth Deceleration Google reported a slowdown in Search revenue growth to 12 percent year over year in the third quarter, down from 17 percent previously. Paid click growth also dropped from 13 percent to 8 percent. Investors are increasingly concerned about these figures given the company's massive 200 billion dollar infrastructure spending plan. ## AI Monetization Challenges Chief Business Officer Philipp Schindler noted that while AI Mode queries are growing, they currently monetize at a lower rate than traditional searches. Although Google claims these queries are largely incremental, the shift represents the first major disruption to their core business model in decades, creating uncertainty regarding long-term advertising yields. ## Advertiser Performance Metrics Digital agency Tinuiti reports that advertisers increased their Google paid search spending by 14 percent year over year while maintaining return-on-ad-spend targets. However, advertisers cannot isolate AI-driven ad performance because Google does not provide separate targeting or reporting for that specific inventory, making it difficult to assess true AI effectiveness. ## Search Intent Dynamics The effectiveness of AI ads depends heavily on user intent. Users searching for specific products like Nike shoes still receive traditional shopping listings, which drive high conversion. Conversely, AI-generated summaries often capture users in the research phase, which may result in lower immediate sales compared to direct, high-intent search queries. ## Comparative Revenue Risks Research suggests that conversational AI interfaces may struggle to match the revenue density of traditional search. An October working paper indicated that ChatGPT-driven retail sessions generated significantly less revenue per session than Google Search ads. While not a direct comparison to Google, it highlights the inherent difficulty of monetizing conversational AI. ## Strategic Rollout Uncertainties Google is currently expanding ad placements into AI Overviews and AI Mode across international markets. The company is also considering integrating ad formats into the standalone Gemini app. Despite these efforts, it remains unclear whether these formats will eventually replace high-value traditional search traffic or simply supplement existing revenue streams. ## Historical Context of Adaptation Google previously navigated a challenging transition when shifting from desktop to mobile search, where early traffic was less valuable due to poor shopping experiences. The company eventually optimized mobile ad formats to match desktop performance. Executives hope a similar evolution will occur with AI, though success is not yet guaranteed. ## Future Industry Outlook The industry is still in the experimental phase regarding conversational advertising. Analysts suggest that finding effective formats could take years, similar to the evolution from banner ads to paid listings. For now, Google must balance the high costs of AI infrastructure with the unproven revenue potential of its new search interface. ## Sources covering this story - https://www.theverge.com/ai-artificial-intelligence/1024862/google-search-ai-overviews-alphabet-earnings-q3 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._