Alphabet’s and Microsoft’s AI Search Ads Strategy Sparks industry pushback

Microsoft and Google’s AI-based search advertising strategy irks some brands

Ad buyers at Reuters reported that Alphabet (GOOGL.O), Microsoft (MSFT.O), and Alphabet (GOOGL.O), are inserting advertisements into AI experiments, without offering an opt-out option. This approach has already riled some brands, and could lead to further backlash from the industry.

Both tech giants are racing against each other to update their search engines to include artificial intelligence, which can provide written answers to questions with no specific answer. This process will change the way advertisers reach consumers via ads in search results. According to research firm MAGNA, this market is expected to grow by 10%, to $286 billion, this year.

Microsoft has announced that it is testing ads within the Bing AI Chatbot. The chatbot was launched to users in early February. Microsoft said they are relocating traditional search ads into AI responses.

Source:
https://www.reuters.com/technology/microsoft-google-strategy-test-ai-search-ads-irks-some-brands-2023-06-08/

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