Google disclosed that its AI Mode advertising generated $63.3 billion in search revenue for Q3 2026, a figure that trails the earnings from its conventional search ads. Philipp Schindler confirmed the numbers during the earnings call on October 28, noting that while AI‑driven results are gaining traction, advertisers remain cautious about shifting spend away from the proven search model. The shortfall highlights the challenge of monetising AI‑enhanced experiences at scale, as brands weigh the benefits of richer, conversational interfaces against the established ROI of keyword‑based campaigns.
Analysts predict that as AI models improve and integration deepens across Google’s ecosystem, the revenue gap could narrow. However, the current disparity underscores the need for clearer measurement tools and stronger performance guarantees to convince advertisers to allocate larger portions of their budgets to AI Mode.
This story was written by a language model from reporting by Shattered.io. Check the original before quoting it.