GOOGLE SAYS AI CHATBOTS ARE HURTING ITS BOTTOM LINE

Summary from the TLDR Marketing newsletter

Google's AI search features are putting pressure on its core advertising business. Search volume growth slowed from 19% in Q1 to 12% in Q3 while search revenue remained flat. Google says AI Mode queries generate less ad revenue and plans to expand ads across AI Overviews and AI Mode to offset the impact. As more users turn to chatbots for answers, Google faces a challenge in maintaining ad revenue while investing in increasingly costly AI features.