Google faces a slowdown in search advertising revenue growth due to AI

The company Alphabet has published its third-quarter financial report, revealing the performance of its search business. The growth rate of revenue from Google Search slowed to 12 percent year-over-year. In the previous quarter, this figure was approximately 17 percent.

At the same time, the total number of search queries is growing at its fastest pace in the last five years. However, the monetization of these queries is lagging: the growth in paid clicks on advertisements fell short of analyst expectations amid the active integration of generative answers into search results.

The financial results demonstrate the complexity of the transition for advertising giants toward new user interaction interfaces. Changes in audience behavior patterns within the search engine directly impact the company's key revenue sources.