[FLASH] Google says lower AI Mode monetization weighed on Q3 Search growth; AI Mode ads expand internationally
On Alphabet's Oct. 28 call, CBO Philipp Schindler said strong AI Mode query growth 'had an impact because of the lower monetization we were seeing in AI Mode', and ranked it behind FX, which he called the single largest driver. Search & other revenue rose 12% to $63.35B, against a reported $64.85B consensus and down from 17% growth in Q2 and 19% in Q1. Google is extending AI Mode ads to international markets and adding multi-turn ads in the U.S., and it says sponsored-listing click-through in AI Mode is roughly on par with organic. This is the clearest first-party evidence so far that answer-engine formats earn less per query than classic search. To watch: whether Q4 Search growth recovers as FX eases and AI Mode ad coverage widens, and whether Google ever reports AI Mode monetization separately.