Google's Search revenue miss raises a big existential question
In its Q3 earnings, Google said its AI investments are leading to more searches than ever, yet it's not making money at the same rate.
TL;DR
- Google's Q3 search revenue missed market estimates despite a five-year high in query growth.
- The company attributes the revenue miss partly to the lower monetization of AI-related queries.
- Investors are concerned that generative AI could pose an existential threat to Google's core search advertising business.
- Google is experimenting with and scaling ads in AI Mode and Overviews, with promising initial results.
- The company's CEO stated their focus is on user experience first, followed by monetization, similar to the shift to mobile.