Google has begun showing ads in AI Overviews, which are short summaries generated by artificial intelligence to quickly summarize search results. These AI-generated summaries will now include links to the web pages that provided the source information. In addition, Google will introduce a new search results format with AI playing a key role in compiling the information.
Strategy to Compete with AI Platforms
According to TechCrunch, these updates are part of Google’s strategy to retain users and prevent them from switching to other AI platforms, such as OpenAI’s ChatGPT or Perplexity. Both of these platforms provide answers that users traditionally sought through Google Search. Perplexity, despite being only two years old, has reported an audience increase to 85 million visits per month. Although this is small compared to Google’s vast scale, it is still an indicator of rising competition for the search engine giant.
It’s worth noting that Google’s AI Overview feature has faced criticism since its launch, with some users highlighting errors and poor advice (such as the infamous suggestion to add glue to pizza). SE Ranking reported that the AI Overviews often link to sites with outdated data and struggle to differentiate between fact and fiction.
Ongoing Improvements and Monetization
Google has already made adjustments to its AI Overview algorithm, restricting its responses to queries related to current events and health topics. “We will continue to invest in AI Overview and make it even more useful,” stated Rhiannon Bell, Google’s vice president of user experience, during a press briefing. She emphasized that the company is committed to delivering quality content to its users.
Monetizing the AI Overviews is the next step for Google. Users in the US will soon begin seeing ads within AI Overviews on mobile devices. These ads will be clearly labeled and appear alongside regular content within AI responses. Google has tested this feature with a limited audience and received positive feedback. According to Shashi Thakur, vice president of Google Ads, users found the AI ads helpful in quickly finding the products and services they need.
However, some experts estimate that AI-generated overviews could cost publishers more than $2 billion in lost revenue due to fewer ad impressions on their sites, notes NIXSolutions. Preliminary estimates suggest that AI Overviews may reduce traffic to source sites by about 25%, as users will obtain much of the information they need directly from the search engine summaries. We’ll keep you updated as this situation evolves.