Ryan Haines / Android Authority
In the evolving landscape of advertising, **chatbots are gearing up to make a significant splash**. Google’s recent moves indicate the dawn of a new **advertising era**, merging **AI technology with digital marketing**.
The Intersection of AI and Advertising: A New Frontier
**Google’s Search business serves as a cornerstone** of the company’s revenue model, primarily fueled by ads strategically placed alongside search results. However, this model is on the brink of evolution as **Google begins integrating ads within conversations** with popular chatbots. Imagine the seamless interaction where your chatbot not only provides answers but also **suggests products and services** relevant to your queries.
A Test of Innovation: Google’s Experimentation with Chatbots
According to Bloomberg, Google conducted tests last year in collaboration with **AI startups like iAsk and Liner**. These pioneering trials focused on developing an **ad business model specifically tailored for chatbots**. The outcome? Ads are gradually making their way into benign conversations with AI, effectively transforming user engagement into monetized interactions.
Emerging Advertising Formats
Curious about how this will take shape? A Google spokesperson detailed that **AdSense for Search** is now accessible to websites aiming to inject relevant ads into their **conversational AI experiences**. For instance, iAsk demonstrates this by placing ads beneath the AI-generated responses, while Perplexity elevates user engagement by allowing brands to **sponsor follow-up questions** related to user queries.
The Rationale Behind Google’s Move
The rationale behind Google’s rapid shift towards monetizing chatbots is clear. With the rise of **generative AI tools** like ChatGPT, Google faces a legitimate threat to its **Search business** as more users lean towards AI for their information needs. As chatbot usage expands, so too does the **risk of dwindling traffic** to traditional search engines. Google, intent on sustaining its dominance in the digital advertising realm, recognizes the necessity of this transition.
