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Chronicles

The story behind the story

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Google begins showing AdSense ads in conversations with AI chatbots; sources say Google tested the ads in 2024 with startups, like AI search apps iAsk and Liner

Google's ad network has begun showing advertising within the flow of conversations with chatbots — part of Alphabet Inc.'s efforts …

Bloomberg Julia Love

Context & Ripple Effects

Google had already positioned generative AI as a way to make search advertising more responsive to query context through its conversational ad-creation and relevance tools. The reported tests with iAsk and Liner extend that logic beyond Google's own results pages into third-party AI interfaces.

The move also arrives as advertisers were assessing how chatbot-led search changes targeting and placement opportunities, a transition documented in early advertiser responses to AI search chatbots. Later coverage of sponsored placements in AI Mode points to a broader effort to normalize ads within answer-oriented experiences.

First-order effects

  • iAsk, Liner and similar chatbot products can tap AdSense as a monetization option within conversational flows, while Google gains a new distribution surface for its ad network.
  • Advertisers gain potential access to chatbot interactions through an existing Google buying channel, rather than relying only on conventional search-result inventory.

Second-order effects

  • Chatbot operators using ads will need to balance revenue against answer quality and user trust; placement and labeling become central product choices rather than simple page-layout decisions.
  • AI-search rivals and ad platforms face pressure to offer comparable targeting, measurement and brand-safety controls as conversational interfaces become commercial inventory.

Third-order effects

  • If conversational placements scale, search advertising may shift from monetizing lists of links toward monetizing intent inferred across an exchange, concentrating value with platforms that control both AI distribution and ad demand.
  • The durability of that model will depend on whether sponsored answers remain clearly distinguishable from organic assistance; later sponsored labels in AI Mode show that disclosure is becoming part of the product design.

The trend: This is one step in AI content commercialization: ad networks are adapting search-era monetization to assistant-style, conversational interfaces.

Discussion

  • @quinnypig.com Corey Quinn on bluesky
    Wow, OpenAI even beat Google to market at stuffing ads into something.  [embedded post]