The news of September 12thGoogleRight onadvertiseDIRECTLY EMBEDDED IN ITS AI-GENERATED SEARCH ANSWERS, THIS REPRESENTS A MAJOR SHIFT FROM A SEARCH INTERMEDIARY TO A CONTENT PROVIDER, OR A RESHAPING OF DIGITAL ADVERTISING PATTERNS。
1AI UNDERSTANDS THAT, NOW, WHEN USERS ENGAGE IN A DIALOGUE SEARCH (E.G., ASKING “HOW TO SOLVE THE PROBLEM OF LOW WATER PRESSURE”), ADVERTISEMENTS FOR RELATED SERVICES, SUCH AS PLUMBING MAINTENANCE, APPEAR DIRECTLY NEXT TO THE ANSWERS GENERATED BY AI, EXPANDING THE WAY SUCH SITUATIONALIZED, PERSONALIZED ADVERTISEMENTS ARE PLACED IN SEARCH RESULTS。
The technology that supports this function is AI Max, a one-key tool for search and marketing activities, which has been rolled out globally. The tool can be operated on platforms such as Google Ads, Ads Editor, Search Ads 360 and Ads API. Google states that this is a response to the user's actual search habits - the current over60% shopping search is in a broad conversational language, which highlights the advantages of AI generating answers more than the previous link list。
once perceived as a threat to the core business of google, it is now transforming into a competitive advantage of google. the company is reshaping itself as a “one-dimensional content publisher” (omni-publisher): in addition to acting as a “doorkeeper” of information, google is now responsible for, and profiting from, the creation and control of content; it also operates and sells the technological infrastructure that underpins all of this。
THIS TRANSFORMATION HAS FURTHER ENHANCED GOOGLE ' S INFLUENCE IN THE FIELD OF DIGITAL ADVERTISING, BUT OFTEN AT THE EXPENSE OF EXTERNAL PUBLISHERS AND MEDIA COMPANIES, WHICH ARE FACING THE DOUBLE DILEMMA OF LOSS OF AUDIENCE AND DECLINE IN ADVERTISING REVENUES. DESPITE THE HIGHER COST OF GENERATING AI ANSWERS, GOOGLE’S ADVERTISING MARGINS ARE EXPECTED TO INCREASE IF ADVERTISING EMBEDDED IN THESE ANSWERS IS BETTER THAN TRADITIONAL FORMS OF ADVERTISING, WHILE THIRD-PARTY INSTITUTIONS ARE FURTHER PUSHED OUT OF THE MARKET。
And this is only the beginning, and Google may further deepen the integration of advertising, for example by adding direct pay links to the text. The introduction of this new function seems to have been a “water test”, similar to Google’s early search advertising or YouTube profit model, both of which eventually expanded significantly in a context of growing investor pressure。
This has been brought to the attention of regulators, and the United States authorities have filed a lawsuit to split the advertising technology sector of Google. Google lawyers, for their part, claimed that breaking up their advertising operations would accelerate the decline in the open network。