Google is bringing ads to AI Mode globally as it admits that the new take on Search brings “lower monetization,” all while $GOOG stock is seeing a fairly major drop.

Alphabet’s Q3 earnings call yesterday saw Google’s Philipp Schindler acknowledging that AI Mode, the company’s Gemini-powered new take on Search, has “lower monetization” compared to traditional Search. So the “strong growth” of AI Mode didn’t have as much of a positive impact on Google’s bottom line simply because the mode doesn’t generate as much revenue.

Schindler said:

…It’s worth noting that the strong growth in AI Mode queries had an impact because of the lower monetization we’re seeing in AI Mode. To be clear, we feel very good about our trajectory here. Our ad experiments have shown promising results and we’re now scaling ads within both AI Overviews and AI Mode to more users and more queries…