Google says AI agents will do the shopping and ads will stay
Google says that agents will do the grunt work of shopping and that persons will compare brands and sponsored offers.
On an earnings call, the chief business officer of Google, Philipp Schindler, gave a plan to keep ads when agents do the shopping. Schindler said that persons want to find and compare, and Google says this gives ads a position. Google also said that its AI search mode has more searches than before, but the income does not increase at the same rate.
What is new
Schindler said that persons do not always select on price only. They also look at brand loyalty and customer service. The example of Schindler was an insurance offer with a premium that is high, a deductible that is low and a special discount.
The numbers
The third-quarter revenue of Alphabet was $127.58 billion. The forecast of the analysts was $127.97 billion. An unrealized loss of $8.2 billion on a SpaceX investment decreased the earnings, and the shares decreased by about 10% after hours.
What is not known
Google gave no test results and no numbers for income from agent shopping. In the last quarter, it said that it did tests on offers in travel plans and on sponsored links in lists that AI makes.
Insight: Google wants the agent and the ad position
Google says its checkout system works for hundreds of thousands of brands, and it plans agents for the 1 billion users of its app. Cheq, a cybersecurity company, says that large stores stop shopping agents. Google reads as a company that wants the 2 ends: the agent that does the grunt work and the position for sponsored offers. Monitor if sponsored offers show in the results of Google agents.
Sources
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