Google expands AI Mode ads as Search revenue growth eases

Google is scaling AI Mode ads in Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore.[2] It plans to expand AI Mode ads to additional locales in the fourth quarter of 2026, naming Brazil, Mexico and the United Kingdom.[2] Separately, Google is launching multiturn ads in the United States.[2] Those ads can appear in follow-up queries within AI Mode, extending placements beyond a single query.[2] The announcements describe a broader geographic rollout and a distinct US launch for ads that can continue into a conversation.

Google says AI Mode ads will carry the label “Sponsored.”[2] Existing Search, Shopping and Performance Max campaigns are eligible for AI Mode ads by default, and advertisers cannot opt out of AI Mode ads separately.[4] That makes campaign eligibility a practical consideration for teams reviewing where their existing campaigns may appear. Google also says it will continue testing new ad formats to keep ads helpful and relevant.[2] The company’s statements describe its intended labeling and testing approach, but the evidence does not specify additional controls for advertisers.

Google Search & other revenue reached $63.35 billion in the third quarter, while Search revenue grew 12% year over year, down from 17% in the second quarter and 19% in the first.[1][3] Google said Search queries grew year over year at their fastest rate in five years.[3] One reported reason for slower growth is that AI Mode monetizes at a lower level; Google’s Schindler said strong AI Mode query growth negatively affected Search revenue growth for that reason.[4] The figures show stronger query growth alongside slower revenue growth, rather than evidence that the new ads have changed that trend.

Google says queries in AI Mode are three times longer on average than traditional searches, and its research found people comfortable with AI Mode ads and considered them highly relevant.[2] Google also says click-through rates for sponsored and organic product-list items in AI Mode are already similar.[2] Pichai said one in five AI Mode searches globally involves voice, images or documents.[1] These are company-reported measures and views; they describe Google’s rationale for developing ads around AI Mode, but do not establish how the expansion will affect advertiser results.