During Alphabet’s third-quarter earnings call, the company revealed plans to extend its advertising business—integrated within its AI-driven search experience—to international markets. The goal is to unlock new revenue streams by leveraging generative AI. While the company’s revenue rose by 25% year-on-year this quarter, its stock price dropped by 8% following the earnings announcement, reflecting concerns over the deceleration of its core search advertising business.

A Google executive explained that the company is broadening the reach of high-quality ads within AI Overviews and AI models, marking its first global rollout of this commercialization effort. Simultaneously, it is launching multi-round conversational ads and AI models in the United States. Early tests indicate strong performance, with click-through rates for sponsored product listings in AI models rivaling those of organic search results. Users generally perceive these ads as highly relevant.

This initiative builds on the new Gemini-powered advertising format announced in May this year. Google’s CEO highlighted that the total volume of search queries has recently grown at its fastest year-on-year rate in nearly five years, with AI features reshaping user search behavior. In AI mode, the average query length is three times that of traditional searches, and one in every five AI-mode searches involves multimodal input. Google now processes over 50 billion visual search requests monthly, demonstrating how AI is delivering tangible benefits to a broader user base.