🔍 Read the full analysis: AI Search Ads Go Global As Google Looks Beyond Slowing Growth on ThorstenMeyerAI.com
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TL;DR
Google said on October 28 that ads in its AI Mode search experience will expand to 10 more countries, with ads in U.S. follow-up questions also beginning to roll out. The announcement came as Google Search & other revenue growth slowed to 12% in the third quarter; Google cited currency effects and lower monetization of AI Mode searches among the reasons.
Google said on October 28 it will expand ads in its chat-style AI Mode search to 10 more countries and begin showing ads in U.S. follow-up questions. The move comes as Alphabet reported that Google Search & other revenue grew 12% in the third quarter, slower than in the previous quarter, while the company said AI Mode searches currently generate less advertising revenue.
The expansion covers Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. Google also said it plans to add Brazil, Mexico and the United Kingdom in the fourth quarter of 2026. In the United States, ads can now appear not only with an initial AI Mode response but also in answers to follow-up questions, extending advertising into more turns of a search conversation.
Google’s existing Search, Shopping and Performance Max campaigns are eligible to appear in these placements automatically, according to the source material’s summary of Google Ads Help. Advertisers do not have a separate targeting control or opt-out for the AI placements, and reporting is provided in aggregate. Google’s system may also add short explanatory text next to an ad; advertisers cannot edit that text, the help information says.
Alphabet reported $63.4 billion in Search & other revenue for July through September. The growth rate was 12%, compared with 17% in the prior quarter. Chief business officer Philipp Schindler said currency movements were the largest factor in the slowdown and also pointed to the lower monetization of fast-growing AI Mode searches. Google says AI Mode queries are longer on average than standard searches, but its reported click-through comparison covers sponsored and unpaid product listings within AI Mode—not clicks to external websites.
Infographic 01 · From test to global
The answer now carries the ad, in more places.
How Google moved ads into its AI answers in two years, where they show today, and the revenue pressure behind the move.
Where ads appear inside AI answers
Per Google’s help page and the 28 Oct post. The list “may not be exhaustive”.
Follow-up questions (“multiturn ads”): US only. Germany and the rest of the EU: not listed. Ads above or below AI Overviews can show wherever AI Overviews exist (200+ countries and territories).
Why now: Google Search & other revenue growth
Year over year, as reported by Alphabet. Bars scaled to 19%.
Q2 to Q3 2026: about +0.1%. Same months a year earlier: about +4.4% (my arithmetic). Google names exchange rates as the largest driver of the slowdown, and the “lower monetization” of AI Mode as one factor.
- 3 Oct 2024Ads inside AI Overviews go liveUS, mobile, after months of testing
- 21 May 2025Desktop in the US; first tests in AI ModeEnglish-speaking countries announced for later in 2025
- 20 May 2026New formats in testingConversational Discovery ads and Highlighted Answers, both with a Gemini-written “AI explainer”
- 28 Oct 2026AI Mode ads in 10 more countriesPlus “multiturn ads” in follow-up questions in the US; labeled “Sponsored”
- Q4 2026Planned: Brazil, Mexico, United Kingdom“Additional locales, including” these three
Sources: Google, 28 Oct 2026; Google Ads Help, accessed 29 Oct 2026; Google, 3 Oct 2024; Google, 21 May 2025; Google, 20 May 2026; Alphabet Q3 2026 release and the Q4 2025, Q1 2026 and Q2 2026 releases. “3× longer” is Google’s AI Mode report (US, May 2026). Quarter-on-quarter changes and bar scaling: Thorsten Meyer.
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Ads Follow the AI Search Conversation
For Google, the rollout puts advertising into a search format the company says is growing quickly but currently earns less than traditional search. The expansion could help the company develop new commercial placements as more users ask questions in AI Mode. The third-quarter figures show the business remains large, but its year-over-year growth rate has eased; the announcements do not establish how much revenue the new placements will generate.
For advertisers, these placements may bring products into answers where users are asking detailed questions, but the described setup offers limited control over where ads appear and how the accompanying explanations are worded. For users, the practical distinction is whether a result is marked “Sponsored”. Google says ads in AI answers carry that label and do not affect the AI-generated answer itself. That separation is Google’s statement; the source material reports no independent audit of it.
The change also matters to publishers that depend on visits from search. A 2026 working paper by Agarwal and Sen reports that, in a randomized experiment involving 1,065 U.S. users, AI Overviews reduced website clicks by 39.8% when they appeared, while clicks on ads showed no measurable change. That result concerns the study’s test and should not be treated as a forecast for every search or for the newly expanded AI Mode ads.
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From AI Overviews to AI Mode Ads
Google’s AI search advertising has expanded in stages. Ads in AI Overviews—summaries shown within standard search results—went live for U.S. mobile users in October 2024 and reached desktop in May 2025. Google began testing ads in AI Mode in May 2025. At its May 2026 marketing event, it also introduced tests of formats that tailor ad text to a user’s question and place ads within AI recommendation lists.
The October announcement extends ads into more markets and into later turns of a U.S. AI Mode conversation. Google Search & other revenue growth had been 17% in the fourth quarter of 2025, 19% in the first quarter of 2026 and 17% in the second quarter, before reaching 12% in the third quarter. Schindler also cited changes affecting some Asian retail advertisers and a normalization in media and entertainment spending after a strong World Cup quarter. The company’s stated reasons therefore include factors beyond AI search monetization.
““The strong growth in AI Mode queries had an impact because of the lower monetization we were seeing in AI mode.””
— Philipp Schindler, Alphabet chief business officer, on the third-quarter earnings call
Revenue and User Effects Remain Unclear
Google has not disclosed how much the newly expanded placements are expected to add to revenue, nor how quickly ads will appear across the listed markets. Its comparison of ad and unpaid listing click-through rates uses internal U.S. data from August 20 to September 3, 2026 and compares listings within AI Mode. It does not establish whether ads change clicks to publisher websites.
It is also not clear from the available information how often users will encounter ads in follow-up answers, or whether the experience will vary by query, country or campaign. Google says ads do not influence the AI’s answer, but the source material identifies no independent audit supporting that claim. Google’s help page lists 12 countries for ads inside AI answers and English-language availability; Germany and other EU countries were not listed as of October 29.
Country Rollout and Ad Reporting
Google’s stated next geographic additions are Brazil, Mexico and the United Kingdom, planned for the fourth quarter of 2026. Advertisers and publishers will be watching for details on the timing, market availability and reporting for the new placements. Alphabet’s future earnings reports may show whether AI Mode’s lower monetization changes as its use and ad inventory expand, but the company has not provided a specific revenue target for the rollout.
For users, the immediate check is whether a placement is marked “Sponsored”. For publishers and advertisers, the open questions are whether AI answers alter referral traffic and whether the aggregated campaign reporting provides enough information to evaluate performance. Those effects remain to be measured as the rollout proceeds.
Key Questions
Where is Google expanding AI Mode ads?
Google named Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. It said Brazil, Mexico and the United Kingdom are planned for the fourth quarter of 2026.
What is changing for U.S. users?
Ads are beginning to appear in answers to follow-up questions in AI Mode, not just alongside the initial response.
Can advertisers opt out of these placements?
According to the source material’s summary of Google Ads Help, existing Search, Shopping and Performance Max campaigns can take part automatically, with no separate opt-out for the AI placements. Reporting is provided in aggregate.
How does Google say users can identify an ad?
Google says ads in AI answers will carry a “Sponsored” label. It also says ads do not influence the AI’s answer, a claim for which the source material reports no independent audit.
Why is Google expanding ads in AI search now?
Google is adding ads to a growing search format as Search & other revenue growth slowed to 12% in the third quarter. Schindler cited currency effects and lower monetization of AI Mode searches, among other factors; the company has not said how much revenue this expansion will produce.
Source: ThorstenMeyerAI.com
