Google has officially confirmed that advertisements will be integrated into its new AI-powered search results. The announcement was made by Jerry Dischler, Google’s Vice President for Ads, during the Google Marketing Live 2023 event. This move affirms that the company’s ad-supported business model will extend to its latest search innovation, the Search Generative Experience (SGE).
The SGE feature, which provides conversational, AI-generated answers directly on the results page, is currently an opt-in experiment available through Google’s Search Labs. The company is actively testing how to best incorporate ads within this new interface without disrupting the user experience. The stated goal is for ads to remain a valuable component of the search journey.
New Ad Formats Under Development
During the event, Google demonstrated that it is experimenting with new ad formats specifically designed for the AI-powered “snapshot” and “conversational mode” features. The company is exploring how ads can be seamlessly and usefully integrated directly within the context of an AI-generated response. Dischler explained that the new formats are intended to be helpful and non-intrusive for users interacting with the generative AI content.
One example showcased was a “Search and Shopping ad” appearing within an AI snapshot. This demonstrates a clear path for sponsored product listings and other commercial content to be presented alongside the information generated by the AI model. Google is leveraging its decades of experience in search advertising to inform the development of these new integrations.
Commitment to Ad Transparency
Google has reiterated its commitment to transparency regarding sponsored content. As with traditional search results, any ads appearing within the Search Generative Experience will be clearly identified with prominent labels, such as “Sponsored.” This practice is meant to ensure users can easily distinguish between organic, AI-generated information and paid advertisements.
The company maintains that its principles for advertising remain the same: to show relevant and high-quality ads while being transparent with users. The ongoing tests in Search Labs will provide Google with data and user feedback on the effectiveness and reception of these new ad placements before a wider rollout.
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