Google stands at a paradoxical juncture, leading in AI advancements through its Gemini apps, Waymo robotaxis, and research initiatives, while still relying heavily on its traditional online advertising revenue. Liz Reid, who heads Google's Search, asserts that advertising will remain relevant in aiding smaller companies to gain visibility via AI. However, this transition signifies a fundamental shift in advertising dynamics, requiring a reimagining of how brands engage with AI agents in a landscape where traditional ad formats may no longer suffice.
Imagine describing a pair of shoes you want to buy to a voice assistant, which searches the web, perhaps using Google. It then describes the options and you instruct it to purchase one of them.
Reid said advertising still had a place in this world, like a small, newer company that could use marketing to make itself discovered by an AI model.
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