Wire & File: Google Says AI Drives Query Growth. Its Ad Chief Says AI Mode Slowed Search Ads.
Google told investors AI is driving its fastest query growth in five years. Its search ad growth fell from 19% to 12% in two quarters, and its ad chief conceded AI Mode monetizes less.
Read the full investigation on ADOTAT →Key findings
- Alphabet search ads grew 12% to $63.35 billion in Q3, down from 19% in Q1 and 17% in Q2.
- Amazon ad growth slowed from 26% to 10.9%, and Amazon blamed Prime Day timing without giving an adjusted number.
- Reddit grew ad revenue 54% to $847 million while Google search referrals fell by more than 1 million a week.
- DoorDash agreed to buy Instacart for about $17 billion, against a 2021 valuation of $40 to $50 billion.
- FreeWheel moves with NBCU in the Comcast spinoff, so one network will own the ad server its rivals use.
On the record
“AI Mode does not drive traffic, not for us and not for anybody.”
“you're not on the device anymore.”
The full story, with the documents, the numbers and the responses, is on new.adotat.com. Get ADOTAT in your inbox: subscribe free.