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Published by J9 Systems. What's new in business tech, and what it means for yours.

From the brief of Thursday, October 29, 2026 · No. 16

From the daily brief · AI

Google takes AI Mode ads global and adds multi-turn ads in the U.S., Oct. 28

If you pay for Google Search ads, some of your budget may start showing up inside AI answers, and Google has not said what that does to local leads.

By Carter Josephson · · 2 min read

What happened

On Oct. 28, during Alphabet's third-quarter earnings call, Google said it is expanding ads in AI Mode to international markets for the first time and adding multi-turn ads in AI Mode in the U.S. Alphabet reported third-quarter revenue of $127.6 billion, up 25% year over year, while Google Search revenue grew 12%, down from 17% in the second quarter.

What it means for a 10-to-50-person business

Primary source not confirmed: the expansion was announced on the earnings call. The linked Google post covers the May ad formats, so the editor should check for a Google Ads post or call transcript. For a U.S. local-service business the effect is small and unclear. The international part does not touch you. The U.S. part, multi-turn ads in AI Mode, means more of your search budget could serve inside AI answers instead of the classic results page. In the material we have, Google has not said how this changes cost per click or Local Services Ads. Take a 14-person plumbing shop spending $3,000 a month on Google Search ads. Assume 10% starts serving in AI Mode. That is $300 a month, about $3,600 a year, going to a placement the owner has never seen a lead report for. Google says click-through rates on sponsored product listings in AI Mode match organic listings. That figure covers retail products, not "water heater repair near me". Owners who run paid search should get one answer from whoever manages it. Owners who live on referrals and their Google Business Profile can ignore this.

What to do
Ask your vendor

At your next monthly ads review, ask whoever runs your Google Ads whether your campaigns can serve in AI Mode and to show leads and cost per lead from those placements separately.

What it costs
What it costs
Question to your ads manager or agency, 15-minute call at $50/hr
≈ $13
Review one month of placement and lead reports
1 hr (≈ $50 at $50/hr)
Spend possibly serving in AI Mode, assume 10% of a $3,000/mo budget
up to $300/mo unverified
Doing nothing
$0 now; no announced U.S. price or settings change for local campaigns
Sources
blog.google (primary) · Alphabet Q3 2026 earnings release (PDF) · TechCrunch: Google expands AI Search ads globally as core ad growth slows

Questions owners ask

Does this change Local Services Ads (the Google Guaranteed listings)?

Google has not said so in the material we have. The announcement covered ads in AI Overviews and AI Mode, not Local Services Ads.

Do I need to change any campaign settings this month?

No change has been announced that requires action. The useful step is to find out whether your existing campaigns can serve in AI Mode and to track those leads separately.

I only work in the U.S. Does the international expansion matter?

No. Only the new multi-turn ads in AI Mode in the U.S. could affect where your ads appear.

Three to five of these, every weekday morning.

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