Google’s Liz Reid: AI Overviews Boost Searches, Reduce Ads
▼ Summary
– Google’s AI-powered search has maintained relatively stable ad revenue despite AI Overviews answering queries directly on results pages.
– While some individual queries see fewer ad clicks, overall search volume increases because faster answers encourage more searches.
– Commercial searches requiring purchases still drive ad clicks since AI answers don’t eliminate the need to actually buy products.
– Google compares the AI transition to its successful mobile shift, where initial skepticism about ad adaptation was followed by growth.
– Ads appear alongside AI Overviews in various layouts, and tools like Google Lens lower search barriers to increase total query volume.
Google’s new AI-driven search features are enhancing the user experience without negatively impacting the company’s advertising revenue. According to Liz Reid, who leads Google’s Search division, AI Overviews provide direct answers on the results page, yet overall ad performance remains steady. While certain queries might attract fewer ad clicks, the total volume of searches is climbing, which helps maintain a stable advertising ecosystem.
Reid emphasized that ad revenue with AI Overviews has stayed “relatively stable.” She explained that although some individual searches may lead to fewer clicks on ads, the convenience and speed of AI-generated answers encourage people to conduct more searches overall. This increase in query volume effectively balances any temporary dip in ad engagement.
When it comes to commercial intent, Reid pointed out that AI Overviews do not replace the need for actual purchases. For example, if someone is searching for shoes, the AI can offer helpful information, but the user still needs to complete the transaction to own the product. The technology supports the decision-making process rather than eliminating the final step.
Drawing a parallel to past industry shifts, Reid compared today’s AI transition to the earlier move to mobile. Skeptics once questioned whether Google could successfully adapt its advertising model to smaller screens, but the change ultimately fueled substantial growth. She expressed confidence that the current integration of AI will follow a similar positive trajectory, expanding opportunities rather than limiting them.
Regarding ad placement, Google has the flexibility to display advertisements both above and below AI Overviews. The effect of these placements can differ based on the query type and how the page is laid out. It’s also worth noting that many informational searches never included ads to begin with, regardless of whether AI was involved.
Innovations like Google Lens are making it easier for people to search, which in turn drives up overall query numbers. By reducing the effort required to ask a question, these tools encourage more frequent use of search services.
Even with AI Overviews providing immediate context, users often click through to websites when they need to verify details, compare options, or make a purchase. This ongoing engagement indicates that paid search continues to be a dependable channel for brands looking to connect with customers.
Reid’s observations suggest that Google’s AI advancements are broadening the scope of paid search rather than constricting it. User behavior may be evolving, but conversions remain strong, reinforcing the value of search advertising in a changing digital environment.
(Source: Search Engine Land)
