Google Is Keeping the Option for Ads in Gemini Open

The second aspect is advertiser tools. If you’re a small business, you might not consider all the queries that users will search for. AI excels at identifying the right keywords, determining the optimal creative, and producing that content.

The third element is still developing: advertisements in new experiences. Our overarching philosophy is to create an excellent consumer product first, then explore monetization strategies. Because our business is robust and thriving, we have the luxury of taking our time.

What insights have you gained from experiments with ads in AI Mode?

Ads are always distinct from organic results and are clearly marked. If we find an ad irrelevant, we simply don’t display it. The primary principle guiding us is that ads should be beneficial.

What we’ve observed from [ads in AI Mode] aligns with common sense. If it’s relevant, users will click; if it’s not, they won’t.

At Davos, Demis Hassabis mentioned that Google has no intentions of introducing ads in Gemini. What is your perspective on this now?

Our focus on ads in AI Mode and AI Overviews stems from viewing them as extensions of the Search experience. This is the most logical area for us to conduct initial experiments.

I anticipate that insights gained from ads in AI Mode will likely influence our strategies for the Gemini app in the future. We accumulate learnings in a context where users are already accustomed to advertisements. Interestingly, our research indicates that users actually appreciate ads in the Search context. Over time, we will discern what makes sense for the Gemini app.

So, you’re not entirely dismissing ads in Gemini?

No, we don’t dismiss that possibility. It’s just not where our current focus lies.

Gemini has seen rapid growth and is now a substantial product. OpenAI is experimenting with ads in ChatGPT. Why do you believe Gemini isn’t ready for ads?

We’re thrilled with its growth. It’s more of a prioritization matter—determining the right area to focus on at the moment.

Do you believe OpenAI launched ads too soon?

It’s difficult for me to determine. It largely relies on how they implement it. What we’ve found is that when we execute ads effectively, it enhances the product experience. The critical factor is doing it correctly, ensuring relevance, quality, and avoiding placing ads where users don’t want them.

That’s a complex challenge. With over two decades of experience, we’ve learned how to navigate it. It’s less about timing and more about execution in a user-respectful manner.

Google recently unveiled Personal Intelligence in Gemini and AI Mode. Advertisers would likely be eager to access that data. What are your thoughts on this?

Personal Intelligence is incredibly valuable. For instance, while skiing in cloudy conditions and struggling to see through my goggles, I posed a somewhat vague question to AI Mode about the right lens to use. From my email, it discerned my location, which mountain I was on, and the weather forecast. It even retrieved a receipt from my wife for my goggles—revealing she had purchased an extra lens for me. It’s like subtle magic.