Alphabet’s (GOOGL) Google is introducing advertisements within its AI Overviews, the AI-generated summaries for certain search queries, allowing users to shop for relevant products or services directly from their search results. These ads will be available to all Google app users in the United States.
It should be noted that the ads will be clearly labeled as “Sponsored,” and will appear alongside other content in the summaries. Also, the company stated that the ads will be drawn from existing Google Shopping and Search campaigns.
Google’s AI Overviews Ads Gain Popularity
Google began testing ads within AI Overviews in May to address concerns that its generative AI might negatively impact its core search business. So far, data suggests that users find these ads useful for discovering relevant businesses and products, making these AI-generated summaries increasingly popular.
To improve the user experience, Google has added inline links to the sources used in the summaries, boosting traffic to those websites. Additionally, Google is working on a feature called AI-organized search results, which will display search results in scrollable lists based on user queries and account history.
Google Lens Enhances Ads and Features
In another significant move, Google Lens, the company’s visual search app, will display shopping ads above and alongside visual search results later this year. With 20% of all Lens searches being related to shopping, this presents a significant opportunity for advertisers to reach highly engaged consumers.
Moreover, Google Lens will be able to process video and voice input in addition to photos and text, making it a more flexible tool for users.
Is GOOGL Stock a Good Buy?
Turning to Wall Street, GOOGL has a Strong Buy consensus rating based on 30 Buys and nine Holds assigned in the last three months. At $202.11, the average Alphabet price target implies 21.86% upside potential. Shares of the company have gained 10.46% in the past six months.
