Ä¢¹½AV

GenAI search is gaining traction, but not all consumers are seeking out the conversational experiences that will eventually disrupt the search ad market.

The news: Google is bringing Gemini AI to the living room. Starting in October, Gemini for Home will replace Google Assistant on Nest speakers and displays, per The Verge. Gemini for Home opens new channels for contextual, voice-driven ad engagement inside households. With millions of Nest and Google Home devices expected to get the upgrade, the scale is massive and the stakes are high. Our take: Gemini for Home lets Google fuse search ads with household AI. But winning against Amazon will depend on trust, adoption, seamless ad integration, and pricing. Google’s challenge is making its service compelling enough to drive adoption and subscribers.

Alphabet posted strong Q2 results, with Search ad revenue up 12% YoY and YouTube ad revenue climbing 13%. But analysts and advertisers are asking tougher questions as the company shifts toward AI-led formats like AI Overviews and Gemini. Google declined to provide clear data on ROI, clickthroughs, or user engagement, fueling concerns about monetization in a no-click world. Licensing costs for LLM training, brand safety, and competition from ChatGPT and Perplexity are all in focus. While YouTube continues to lead in streaming ad growth, the future of Google’s ad engine may hinge on transparency, AI accountability, and performance parity.

US advertisers will spend $25.9 billion on AI search ads in 2029—13.6% of all search ad spending, up from just 0.7% in 2025, according to Ä¢¹½AV's May forecast.

The news: Pharma advertisers spent more than $10 billion on prescription drug ads last year, with the top 10 drug brands accounting for $3.3 billion last year, per Fierce Pharma’s report based on MediaRadar data. Our take: As pharma marketers shift drug ad budgets from TV to more digital channels, they’ll have to shift thinking from spendy brand awareness to more nuanced messaging. Social media edutainment, paid AI search ads, and partnering with doctor and patient influencers can reach more relevant consumers and deliver higher ROI.

Google’s AI Max product promises one-click boost to ad performance: AI integration will allow for advanced query matching, but a Chrome sell-off looms large.

As AI search gains traction, Apple hints it won’t stay Google’s passive partner—potentially redrawing the future of search, ads, and browser dominance.