Google’s CEO, Sundar Pichai, stated that search advertisements with AI Overviews are at a baseline, on the identical stage as search advertisements with out AI Overviews, when it comes to advert income per question. He added, and now it’s nearly going up from there, and with AI, he does not see it to an issue.
This subject got here up in an interview by David Friedberg from The All-In Podcast with Sundar Pichai, Google’s CEO.
On the 12 minute mark, David Friedberg requested, “And do you might have a viewpoint on advert income per AI question?” Properly, on the 10:35 mark he requested that query however Sundar solely answered the associated fee per question aspect, which Google informed us already they diminished considerably – the query was:
If I have been to consider the unit economics of Google’s enterprise there is a price to serve a search question and there is income per search question advert income per search question. How is that quantity altering or how will that change in this type of evolution in search in direction of extra of an AI interface as a result of I’ve received to imagine that to serve an AI pushed question is far more costly than to serve a search question.
Sundar responded to the advert income per question query saying they’re at baseline, the identical stage, as advertisements with out AI Overviews on the web page. He added, they plan on going up from there. He stated:
we already with AI overviews, you understand, we’re on the baseline of, you understand it is the identical, as with out AI overviews. And so we have reached that stage in. So however from there we are able to enhance proper and I believe, I’ve at all times felt, you understand the rationale advertisements have labored effectively in search is as a result of business info can also be info, individuals in after they have that intent are searching for that almost all related info. So I do not see any motive why AI you understand simply from a primary principal standpoint, why will not AI do a greater job there as effectively, proper.
And so I believe you understand I believe we’re snug that we are able to work the transition by means of a few of it might take time however all indicators are that we’ll have the ability to do it effectively over time. However you understand it is already you understand already AI overviews after we present advertisements we have form of reached the baseline.
Right here is the embed on the 10:30 mark, however you’ll be able to skip to 12 minutes to pay attention to only the advert income per question subject:
It’s an hour-long interview, with some actually good Q&A however I pulled solely this half out of you.
To be clear, we’ve got but to actually see advertisements present up inside AI Overviews but (effectively, not often) however there are many advertisements on high, the aspect and beneath AI Overviews.
Discussion board dialogue at X.
