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Google expands AI search ads as Search growth and referrals slip

4 sources · 5 articlesFirst reported Updated ()1
What's new

October 30: Reddit CEO Steve Huffman said weekly Google referrals fell by more than one million and blamed AI Overviews and AI Mode; Reddit shares fell over 25%.

Merged summary · x-ai/grok-4.7 · rewritten as coverage arrivesSummaries by Vani AI

Alphabet is taking AI search ads global while Search growth slows and Reddit says Google referrals collapsed in October.

Alphabet is expanding ads in AI Overviews and AI Mode worldwide, including multi-turn U.S. ads, while Search growth cools. TechCrunch and The Decoder say Search and other ads rose 12% to $63.4 billion, missing a 15% forecast; growth was 17% the prior quarter. Ars Technica instead says search volume rose 12% and search revenue was flat, with EPS of $2.12 missing $3.02 and shares down almost 12%; TechCrunch put the share drop at 8%. Philipp Schindler said AI Mode earns less per query because ads are fewer and cheaper. On October 30, Reddit’s Steve Huffman said weekly Google referrals fell by more than one million and that AI Mode does not drive traffic for anybody, as publishers cite steep click losses Google disputes.

Key facts
  • Alphabet Q3 revenue was $127.6 billion, up 25% year over year.
  • Google Cloud revenue rose 103% to $30.7 billion.
  • Schindler said AI Mode queries show fewer, cheaper ads.
  • Huffman: Reddit lost over one million weekly Google referrals in October.
  • DMG Media told a UK regulator click-through rates fell by up to 89%.
  • Quarterly capital spending reached $51.4 billion, The Decoder reports.
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What each outlet adds

beyond the shared facts
  • TechCrunchAI search ads going global; Alphabet shares fell 8%.
  • The DecoderSearch ads of $63.4 billion missed a 15% forecast; capex figure.
  • Ars TechnicaCalls search revenue flat and EPS a miss; shares almost 12% down.
  • The Decoder (Oct. 30)Huffman’s referral drop and claim AI Mode sends no traffic.
  • The VergePublisher click-loss figures and Google’s stable-clicks response.
Vendors
Google
Products
AI ModeAI OverviewsGoogle CloudGoogle SearchYouTube
Victims
Reddit
Organizations
AlphabetNews/Media AllianceDigital Content NextPew Research
Countries
United States
AI models
GeminiCarbon

Coverage

oldest first · one row per article · UTC
  1. · 5d ago The Verge · AIFirst report

    Google AI search features cut traffic for online publishers

    Publishers cite click-through drops of up to 89 percent, while Google says search click volume stayed relatively stable.

  2. · 2d ago TechCrunch · AI

    Google expands AI Mode search ads to international markets

    Alphabet reported $127.6 billion in quarterly revenue, while Search ad growth slowed to 12% from 17%.

  3. · 1d ago The Decoder

    Google search ad growth misses forecasts as AI mode pays less

    Search and other ads rose 12% to $63.4 billion, short of a 15% expectation, while Cloud revenue doubled.

  4. · 1d ago Ars Technica · AI

    Google says AI search earns less than web search as growth slows

    Alphabet's Q3 EPS of $2.12 missed a $3.02 consensus, and shares fell almost 12 percent after the report.

  5. · 4h ago The Decoder

    Reddit CEO says Google AI Mode sends no search traffic to sites

    Shares fell over 25 percent after Huffman said weekly Google referrals dropped by more than one million in October.