--- title: "Google Sees Ad Revenue Decline Due to AI Mode and Overviews" url: https://newscentral.site/google-sees-ad-revenue-decline-due-to-ai-mode-and-overviews/ language: en publisher: "News Central Site" section: "Technology" published: 2026-10-30T00:43:22.000Z updated: 2026-10-30T01:29:00.343Z id: f85a6148-831e-4303-b872-c7de34b0e3ae source: "CNET https://www.cnet.com/tech/services-and-software/google-expands-advertising-ai-mode-overviews/" attribution: "Link to https://newscentral.site/google-sees-ad-revenue-decline-due-to-ai-mode-and-overviews/ and name News Central Site when you quote or summarize this story." --- # Google Sees Ad Revenue Decline Due to AI Mode and Overviews The decline is attributed to lower monetization rates in AI Mode and Overviews, which prioritize summarized responses over traditional ad-clicking behavior. Google's quarterly earnings call revealed that despite an increase in searches, ad revenue has taken a hit due to users opting for AI Overviews and AI Mode. The reason behind this decline is attributed to lower monetization rates in these newer search features, which prioritize summarized AI responses over traditional ad-clicking behavior further down the page. This phenomenon isn't new; it's been observed that when users type questions into Google, a summarized AI response often appears immediately, reducing the likelihood of clicking on ads placed below the results. To combat this trend, Google is expanding its advertising approach in AI Mode to more countries. The company has announced plans to introduce ads in 10 new countries, including Australia, Canada, India, Kenya, and Singapore. Additionally, Google aims to launch multiturn ads in the US, allowing ads to appear within follow-up queries when a search or conversation has commercial relevance, effectively integrating sponsored content into users' searches. Google's AI Mode is designed to gather more information during conversations about products, allowing for more targeted ads that cater to a user's specific interests. The AI-powered overviews can now display ads on initial queries, not just follow-up questions, and the ads will only appear if there's clear purchase intent. If no commercial relevance is detected, ads won't be shown at all. As Google increasingly relies on its AI tools, users may find it harder to access content from preferred publishers directly through search results. Instead of clicking on links "below the fold," readers may need to dig deeper and explore beyond Google's products. SEO expert Lily Ray warns that Google's AI Mode isn't designed to provide exact links to desired articles. However, users can still navigate around this by scrolling down to traditional search results or using web filters to view a list of links. To mitigate the impact, Ray recommends setting up preferred sources in your Google account settings, which will allow you to see more content from those publications in your personalized results. Google's dominance in search engine market share remains unchallenged, with nearly 90% of global searches passing through its platforms. The company reported a significant increase in year-over-year query volume growth during the third quarter, marking one of the fastest rates in the past five years. However, this trend has had an unexpected consequence: the launch of AI Overviews in May 2024 has led to a decline in advertising revenue for Google. This shift towards relying on artificial intelligence to provide answers directly within search results has resulted in fewer users clicking through to external websites. The impact is most pronounced for online publishers, with many experiencing a substantial decline in website traffic. In fact, the data suggests that AI Overviews now account for nearly half of all Google search queries, leading to a 61% drop in raw traffic volume to other pages. Google's shift towards AI-powered search results has significant implications for how users interact with the platform and the types of content they see. In addition to the traditional search results page, which often features an AI Overview at the top, Google also offers a conversational interface called AI Mode. This mode is accessible through the AI Mode button on the Google home page or by selecting it from the horizontal menu on other Google pages. When users engage with AI Mode, they are presented with a more interactive and in-depth experience than what's available in traditional search results. For instance, if a user asks for information about a specific topic, such as the northern lights, they may receive a map and list of locations with pros and cons, rather than just an overview and links to other websites. This conversational approach is designed to provide more advanced reasoning and ways of interacting with Google's search results. However, this shift also means that users are less likely to click on organic search engine results, which are the non-paid listings that appear at the top of a traditional search results page. As a result, Google will be aggressively routing users toward advertisers rather than publisher links, leading to an even greater decline in organic click-through rates. As a result of this shift in strategy, websites and publishers will find it increasingly difficult to reach their target audience through organic means. Google's algorithm will prioritize ads over publisher links in its AI-powered search results, making it harder for non-paying sites to get noticed. This change is likely to lead to a significant increase in ad visibility, but at the same time, it may drive down user engagement and trust in online content. The impact on publishers and advertisers will be substantial, as they adapt to this new reality where paid promotions take precedence over organic reach. --- Source: [CNET](https://www.cnet.com/tech/services-and-software/google-expands-advertising-ai-mode-overviews/) Published by News Central Site: https://newscentral.site/google-sees-ad-revenue-decline-due-to-ai-mode-and-overviews/