"The principle was simple. AdWords allowed advertisers to purchase individualized, affordable keyword-based advertising that appears alongside search results used by hundreds of millions of people every day. That decision was a game changer for Google. Advertising now accounts for around three in every four dollars of revenue the company has made so far this year, growing 10% in the last year alone. The product, since renamed Google Ads, has powered the company to prosperity, cementing its position at the top of the search space."
""The shift from traditional search to AI answer engines represents the greatest challenge to Google's $200 billion monetization engine we've ever seen," says Aengus Boyle, vice president of media at VaynerMedia, a strategy and creative agency set up by entrepreneur Gary Vaynerchuk. That's not because competitors are siphoning away users from Google: The company's global daily active users are up 13% year on year, with nearly 2 billion people logging on to Google services every day, according to Bank of America estimates."
Google launched AdWords 25 years ago to let advertisers buy individualized, affordable keyword-based ads alongside search results, transforming search monetization. The product, now Google Ads, supplies about three-quarters of company revenue and grew 10% year over year. Google still attracts nearly 2 billion daily active users, but artificial intelligence is being layered into search results, showing AI-tailored answers above ads and links. Those AI answers can reduce the number of traditional queries that produce ad clicks, threatening the click-based ad model. A shift from traditional search to AI answer engines could therefore significantly undermine Google’s advertising monetization.
Read at Fast Company
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