Google Says Ads in AI Mode Earn Less Than Traditional Search Ads
In short: On Google's Q3 2026 earnings call, chief business officer Philipp Schindler said strong growth in AI Mode queries affected results because of lower monetization in AI Mode compared with traditional search. This is a separate statement from Google's earlier claim that ads on AI Overviews specifically earn the same as ads without AI Overviews. Google says it is still scaling ads in AI Overviews and AI Mode to more markets and query types, including multiturn ads in the US.
- Philipp Schindler, Google's SVP and chief business officer, said on the Q3 2026 earnings call that "the strong growth in AI Mode queries had an impact because of the lower monetization we were seeing in AI Mode."
- This is distinct from Google's earlier, separate statement that ads on AI Overviews earn the same as ads shown without AI Overviews.
- Google said its ad experiments "have shown promising results" and that it is expanding ads in AI Overviews and AI Mode to more users, queries and markets, including multiturn ads in the US.
- Google cited other factors behind a slower Q2-to-Q3 growth rate: currency effects, APAC retail advertisers affected by the EU ending its de minimis exception, and media/entertainment spend normalizing after a Q2 boost from the FIFA World Cup.
- No specific monetization or revenue figures were given for AI Mode; the statements were qualitative.
What Google said
On Google's Q3 2026 earnings call, chief business officer Philipp Schindler said: "It's worth noting that the strong growth in AI Mode queries had an impact because of the lower monetization we were seeing in AI Mode." In plain terms, Google is telling investors that as more searches shift into AI Mode, it is currently earning less per query there than it does from traditional search results pages.
AI Overviews is not the same claim
This is a different statement from one Google made earlier — that ads shown on pages with AI Overviews earn the same as ads shown on pages without AI Overviews. That earlier claim was specific to AI Overviews. The new comment is about AI Mode, Google's more conversational, multi-turn search experience, and it says the opposite: lower monetization, at least for now.
Google is still scaling AI Mode ads
Despite the lower monetization, Schindler said Google's ad experiments "have shown promising results" and that it is scaling ads in both AI Overviews and AI Mode to more users and query types, including national markets and multiturn ad formats in the US. In other words, this is framed as an early-stage economics problem Google expects to improve, not a reason it is slowing the rollout.
Other context from the call
Google also pointed to factors beyond AI Mode behind a slower growth rate between Q2 and Q3: currency (FX) effects, APAC retail advertisers affected by the EU ending its de minimis import exception, and media and entertainment ad spend normalizing after a boost during the FIFA World Cup in Q2. None of these figures were broken out separately in what was reported.
What this means if you manage a Google Ads account
Google gave no advertiser-facing guidance in this call, so the following is our own read, not Google's: expect AI Mode's ad inventory and formats to keep expanding, but don't assume AI Mode placements will perform or price the same as traditional Search right away — Google itself is saying the per-query economics are still different. If you see new AI Mode placements or formats appear in your account, check their performance against your existing Search campaigns before shifting meaningful budget, rather than assuming parity. For deeper reading on structuring Google Ads budget across channels, see our channel prioritisation guide.
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Sources
- Search Engine Roundtable: Google: Ads In AI Mode Earning Less Than Traditional Search Ads · Search Engine Roundtable
Facts in this article come from the sources above, checked on 3 November 2026. Platform features roll out in phases, so check your own account before acting. We update this page when official details change.