FX.co ★ Google Tests Ads Within Its AI Overviews Feature

Google has bolstered its AI-powered search capabilities and announced a new initiative during the Google Marketing Live Event. The company plans to trial search and shopping ads within its automatically generated AI Overviews, which were recently rolled out to U.S. users. This move is set to replace traditional top-ranking links from content providers.

In a blog post, Google explained that search results for queries like "how do I get wrinkles out of clothes" will now include a "sponsored" section. This section will display ads for brands such as Downy and other laundry products within the AI Overview. These sponsored ads will appear when they are relevant to both the query and the information provided in the AI Overview.

Shelly Palmer, a tech industry expert, raised concerns about Google's new ad strategy. She pointed out that while ads within AI Overviews are beneficial for Google, they do not offer compensation or support to the original creators and publishers of the content used to generate the AI Overview.

Insiders say Google's main aim with Search is not only to organize information but also to increase reach, engagement, and return on investment for advertisers.

However, Google's new strategy comes amid legal challenges from the Justice Department and several states. The company is accused of maintaining an unlawful monopoly through its advertising technology platform.