Google admits its AI search mode earns less than classic search.
Alphabet reported on Wednesday that Google's search revenue grew 12% last quarter, below the roughly 15% analysts expected. A Google executive said fast-growing AI Mode searches weighed on results because they bring in less ad money. Google now plans to put more ads inside AI answers, in the US and abroad.
Why it mattersExpect more ads inside the AI answers Google gives you, in more countries. The shift from links to AI answers now shows up in Google's own revenue.
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