First there were ads in internet search, then streaming platforms and now chatbots? Alphabet Inc.’s (NASDAQ:GOOG, GOOGL)) Google is mulling that for its Gemini app.
Philipp Schindler, chief business officer at Google didn’t rule out allowing brands to run ads within the Gemini AI app when answering a question during Google’s fiscal Q1 earnings conference call on April 29.
“Our focus right now is on AI Mode, but it’s fair to say that we really believe a format that works well in AI Mode would transfer successfully to [the] Gemini app,” Schindler said.
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New Ad Formats With AI
Google is currently testing a new ad format within AI Mode that displays retailers that sell the recommended products that appear during searches.
The format could eventually find its way to the Gemini app, but right now Google is focused on the free and subscription tiers, Schindler said.
“Ads have always been a big part of scaling products to reach billions of people,” he said. “And if done well, ads can be really valuable and really helpful commercial information. At the right moment, we’ll share any plans as we have said. But we’re not rushing anything here.”
Schindler’s remarks signal a more exploratory phase for ads in Gemini and differ from comments made on X in December by Dan Taylor, Google’s vice president of global ads. “There are no ads in the Gemini app and there are no current plans to change that,” he wrote at the time.
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A Smarter Way To Shop
Running ads on the Gemini app would align with the company’s vision of where shopping is heading. Searching in AI Mode gives users a more personalized experience that includes recommendations, the ability to compare items and read reviews all in one place, Schindler said on the call.
To bring brands into this new world, Google launched the Universal Commerce Protocol for agentive shopping in January. It is an open standard that enables agentic actions on Google AI Mode and Gemini, including direct buying, order tracking, returns and customer support.
Ulta Beauty Inc. (NASDAQ:ULTA), the beauty and cosmetics retailer, recently launched agentic search in AI Mode and Gemini, enabling customers to read product recommendations, compare options and checkout.
It joins other retailers, including Walmart Inc. (NASDAQ:WMT), Wayfair Inc. (NYSE:W), Shopify Inc. (NASDAQ:SHOP), Target Corp. (NYSE:TGT) and Etsy Inc. (NYSE:ETSY) to offer these capabilities.
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ChatGPT Is Eyeing It Too
Google isn’t the only one eyeing ads in an AI app. ChatGPT appears open to it as well. During a Jan. 21, World Economic Forum panel discussion OpenAI CFO Sarah Friar said ads on ChatGPT would be done in a responsible way.
Friar said ads wouldn’t alter search results, nor …
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