Google's search revenue Ferrari hits an AI-powered speed bump
Alphabet's Q3 search revenue growth dropped to 12% from 17% in Q2, partly due to lower monetization in AI Mode and AI Overviews. While Google is expanding ad distribution in these features, some advertisers have criticized the company's tactics to maintain revenue growth.
Key points
- Search revenue growth slowed from 17% in Q2 to 12% in Q3
- AI Overviews and AI Mode are currently seeing lower monetization than traditional search
- Alphabet spent $51.4 billion in Q3 capital expenditures
- Google is introducing multiturn ads in the US to compensate for revenue gaps
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