Google will now display advertisements within its AI Overview feature, which will be related to the user's search topic. These advertisements will appear with a 'Sponsored' tag. This feature will be launched in India by the end of 2025. The government has removed digital taxes, which will help companies like Google expand in India.
AI Overview Sponsored Add: Google has decided to transform its most talked-about search engine feature, AI Overview, into a new advertising platform. In the coming months, Indian users will not only see answers generated by generative AI on Google Search but also sponsored advertisements within those answers.
With this change, Google has opened a new avenue for earning in the world of search engines, which will not only increase the company's revenue but also help advertisers reach their target audience.
What is the AI Overview feature?
AI Overview is an AI-powered feature introduced by Google that provides users with a summary of answers to their questions with the help of AI. Instead of traditional search results, the answers appear at the very top and in a clear manner, eliminating the need for users to click on links. This feature was launched in the US in 2023 and will now be launched in India in 2025. This makes India the second country after the US to get the AI mode search.
Advertisements will now also appear in AI Overview
Google has announced that advertisements for products and services related to the search query will now be displayed in AI Overview. For example, if a user searches for 'best travel bags', some sponsored links or recommendations for travel bags will also appear within AI Overview. Dan Taylor, Google's Global Advertising Vice President, said in a media interaction that more than 15% of searches on Google every day are performed for the first time. Many of these searches are long and complex and do not have one correct answer. In such cases, these search topics become a golden opportunity for businesses and advertising.
Transparency in identifying advertisements
Users will be clearly informed about which content is an advertisement. For this:
- All advertisements will have a ‘Sponsored’ tag
- This tag will appear in black
- This tag will be different from the answers given by AI, so that the user is not confused
This transparency is necessary to maintain Google's credibility, especially when AI content and advertisements appear on the same page.
When will this feature start in India?
Google has informed that this feature will be launched in India by the end of 2025. Since India is the second-largest internet market in the world, this experiment by Google is considered very important here.
Tax removal will further boost the advertising market
It is worth noting that the Indian government has recently removed two major taxes levied on foreign companies like Google and Amazon:
- 2% Digital Service Tax, which was levied on the services of foreign companies
- 6% Equalization Levy, which was levied on advertising earnings exceeding ₹1 lakh
Experts believe that this step was taken due to pressure from the US trade, but it will give companies like Google an opportunity to delve deeper into the Indian digital market.
Will advertisers benefit?
Absolutely. This new ad system can be a golden opportunity, especially for small and medium-sized businesses. Now they can connect directly with their customers when they are searching for a product or service. Showing ads in AI Overview can increase click rates, as these ads will be presented as part of the information – not as a separate box.
