Google is expanding AI Mode advertising even as Google chief business officer Philipp Schindler said strong growth in AI Mode queries was affecting results because monetization there was lower. The Indian Express reported that Schindler made the comment on Alphabet’s October 28, 2026, earnings call. Google’s announcement that day said it was launching ads on follow-up queries in the United States.
The reported concern is about monetization within AI Mode, not a drop in Search advertising overall. The Indian Express also reported that Search advertising revenue grew 12% year over year in Q3 2026.
How Google places ads in AI Mode
Google said relevant ads may appear below or within AI Mode responses. In a May 21, 2025, announcement, it identified Performance Max, Shopping, and broad-match Search campaigns, including AI Max for Search, as eligible for AI Mode ad tests. That describes eligibility for tests, not a requirement to use AI Max. Google’s announcement on AI Mode ad tests
On October 28, 2026, Google announced an expansion to Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines, and Singapore, as well as ads on U.S. follow-up queries. The same announcement listed Brazil, Mexico, and the United Kingdom as planned Q4 2026 markets. Google’s AI Mode ad expansion announcement
What Google’s click-through-rate claim measures
Google said sponsored and organic items in AI Mode product lists had similar click-through rates, or CTR, based on its internal U.S. data from August 20 to September 3, 2026. CTR measures the share of impressions that result in clicks. The claim covers product-list items within AI Mode; it does not compare AI Mode revenue or profit with conventional Search. Google’s announcement gave no CTR figures or sample size.
