"Google is updating its Search ecosystem with Artificial Intelligence (AI) Overviews, AI Mode, and a redesigned ad experience that groups text ads under a single "Sponsored Results" label, allowing users to hide them with a single click. The changes aim to boost monetization by improving user experience, enabling more consistent ad loads across queries, and increasing click-through rates or click quality."
"He highlighted that while hiding ads might initially seem concerning for monetization, testing shows the changes could boost revenue in three ways, including improving user experience and engagement. He referred to making navigation easier and search more satisfying, enabling higher ad load consistency across queries without disrupting users, and increasing click-through rates or improving click quality as ads appear more like top-ranking organic results while reducing low-value clicks."
Google is updating Search with AI Overviews, AI Mode, and a redesigned ad experience that groups text ads under a persistent "Sponsored Results" label and adds a single-click "Hide sponsored results" control. The "Sponsored" label will extend to other ad units, including Shopping ads, and the updates will roll out globally. Testing indicates hiding ads could boost revenue by improving user experience and engagement, enabling more consistent ad loads across queries without disrupting users, and increasing click-through rates or click quality as ads resemble top-ranking organic results while reducing low-value clicks. Alphabet shares rose 0.59% to $245.58 premarket on Tuesday.
Read at Benzinga
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