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Google introduces ads in AI overviews to enhance search experience

Alex Omenye
Alex Omenye

Google announced on Thursday that it will begin displaying ads within its AI Overviews, the AI-generated summaries for select search queries.

These summaries will also include links to relevant web pages, further enriching the user experience. This rollout will commence in the U.S. this week, coinciding with the introduction of AI-organized search results pages.

The move to incorporate AI into Google’s core search product is a strategic effort to retain users who might be tempted to switch to competitors like OpenAI’s ChatGPT or Perplexity, both of which utilize AI for answering queries. Perplexity reported in May that it has attracted over 85 million visits worldwide since its launch two years ago—a notable achievement despite being a fraction of Google’s traffic.

AI Overviews, launched earlier this spring, has sparked controversy due to its sometimes questionable content. A recent report from SE Ranking highlighted that these summaries often reference unreliable sources, including outdated studies and sponsored content.

One of the key challenges for AI Overviews is distinguishing between factual information and misinformation, or between satire and serious content. In response to feedback, Google has adjusted the feature, including restrictions on responses related to current events and health topics, though it acknowledges that it is not yet perfect.

“We’ll invest in AI Overviews and make it even more helpful,” said Rhiannon Bell, VP of user experience for Google Search, during a recent briefing. Despite the criticisms, Google reports that AI Overviews have increased engagement in Google Search, particularly among users aged 18 to 24—a crucial demographic for the company.

The introduction of ads aims to monetize this feature. Users in the U.S. will soon see ads labeled “Sponsored” in AI Overviews for relevant queries, such as advice on removing grass stains from jeans. These ads will be drawn from existing Google Shopping and Search campaigns and will coexist with non-sponsored content. While Google claims these ads have been positively received, they also clutter the summaries, with sponsored content sometimes pushing organic results further down the page.

Additionally, the new design for AI Overviews will include highlighted links to pertinent web pages. For example, a search about the effectiveness of air filters may lead to a link from the American Lung Association.

This redesign is rolling out in regions where AI Overviews were previously available, including India, Brazil, Japan, Mexico, the U.S., and the U.K.

In tandem with the updates to AI Overviews, Google is also launching AI-organized search results pages for mobile users in the U.S. this week. These pages will aggregate content related to specific queries, such as recipe suggestions, without the ad formats used in AI Overviews.

“A customized Gemini model generates a full-page experience with relevant and organized results,” Bell explained, referring to Google’s AI models. The company plans to expand these AI-organized pages to other search categories in the coming months.

However, the increased use of AI-generated summaries may pose challenges for publishers. A study indicated that AI Overviews could reduce publisher traffic by about 25% due to a decreased emphasis on web links. Experts estimate that this shift could result in over $2 billion in lost revenue for publishers from diminished ad views.

While major publishers like Ziff Davis and Dotdash Meredith have not yet reported significant traffic losses, the situation may evolve as Google, which dominates over 81% of the global search market, broadens its AI offerings.


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