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# Google brings AI Mode ads to Australia as its Search growth slows
- URL: https://www.promptthemarket.com/google-ai-mode-ads-australia-search-growth-slows/
- Published: 2026-10-29T05:30:00.000Z
- Updated: 2026-10-29T05:30:00.000Z
- Description: Australia is one of 10 countries in the first rollout outside the US, as Alphabet's Search revenue grew 12%, its slowest this year.
- Author: Editor News
- Tags: AI, Australia, Alphabet, #author-james-dore

![James Dore](https://storage.ghost.io/c/e4/01/e4017178-c1da-4131-80aa-35f02cb5b999/content/images/2026/09/james-dore.jpg)

By **James Dore** · 2026-10-22

TLDR

Google is now running ads inside AI Mode in Australia, one of 10 countries in its first rollout outside the US. The move came as Alphabet reported Search revenue growth of 12% for the September quarter, its slowest this year, while Google Cloud doubled.

KEY TAKEAWAYS

01Google is scaling ads in AI Mode in Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore.

02Brazil, Mexico and the UK are among the next markets, due later this quarter.

03Google says click-through rates on sponsored and organic product listings in AI Mode are already similar.

04Search revenue grew 12% to US$63.35 billion, down from 17% in the June quarter and 19% in March.

05Alphabet's revenue rose 25% to US$127.6 billion; Google Cloud more than doubled to US$30.7 billion.

## Ads in AI Mode reach Australia

Google has started running ads inside AI Mode, its conversational search experience, in Australia. "Now we're scaling ads in AI Mode in Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore," Shashi Thakur, Google's vice president and general manager of Search ads, wrote on Wednesday.[\[1\]](https://blog.google/products/ads-commerce/ads-in-ai-mode-global/?ref=promptthemarket.com)

Brazil, Mexico and the UK are among the markets to follow later this quarter. The ads are labelled "Sponsored", and Google says "click-through rates are already similar between sponsored and organic product list items within AI Mode". In the US it is also launching multi-turn ads, which can appear in follow-up questions within the same AI Mode conversation.[\[1\]](https://blog.google/products/ads-commerce/ads-in-ai-mode-global/?ref=promptthemarket.com)

"This includes taking our monetization footprint global for the first time," chief business officer Philipp Schindler told analysts.[\[3\]](https://techcrunch.com/2026/10/28/google-expands-ai-search-ads-globally-as-core-ad-growth-slows/?ref=promptthemarket.com)

## Search growth slows

The rollout came on the day Alphabet reported its September-quarter results. Revenue rose 25% to US$127.6 billion, but Search and other revenue grew 12% to US$63.35 billion.[\[2\]](https://s206.q4cdn.com/479360582/files/doc%5Ffinancials/2026/q3/2026q3-alphabet-earnings-release.pdf?ref=promptthemarket.com) That was down from 17% growth in the June quarter and 19% in March, TechCrunch noted.[\[3\]](https://techcrunch.com/2026/10/28/google-expands-ai-search-ads-globally-as-core-ad-growth-slows/?ref=promptthemarket.com)

Chief executive Sundar Pichai said AI was bringing more people back to Search. "Our AI investments are driving overall Search query growth, including commercial queries," he said, adding that "our year-over-year query growth rate is the highest it's been in the last five years."[\[2\]](https://s206.q4cdn.com/479360582/files/doc%5Ffinancials/2026/q3/2026q3-alphabet-earnings-release.pdf?ref=promptthemarket.com) AI Mode queries are about three times longer than traditional searches, he said.[\[3\]](https://techcrunch.com/2026/10/28/google-expands-ai-search-ads-globally-as-core-ad-growth-slows/?ref=promptthemarket.com)

Google Cloud more than doubled to US$30.7 billion, and capital spending rose to US$51.4 billion from US$24.0 billion a year earlier. Net income fell to US$26.2 billion from US$35.0 billion, largely because of an US$8.7 billion loss on equity securities.[\[2\]](https://s206.q4cdn.com/479360582/files/doc%5Ffinancials/2026/q3/2026q3-alphabet-earnings-release.pdf?ref=promptthemarket.com) YouTube ad revenue rose to US$11.2 billion from US$10.26 billion.[\[4\]](https://9to5google.com/2026/10/28/alphabet-q3-2026-earnings/?ref=promptthemarket.com) Alphabet shares fell about 8% after hours.[\[3\]](https://techcrunch.com/2026/10/28/google-expands-ai-search-ads-globally-as-core-ad-growth-slows/?ref=promptthemarket.com)

## What changes for Australian advertisers

Until now, Australian search marketers could watch AI Mode take attention without being able to buy inside it. Google has not said which ad formats are running here, but its US launch centred on sponsored product listings.[\[1\]](https://blog.google/products/ads-commerce/ads-in-ai-mode-global/?ref=promptthemarket.com) Prompt the Market [reported earlier this month](https://www.promptthemarket.com/google-gmail-photos-ai-mode-ads/) that Google is also letting Gmail and Photos data shape AI Mode ads in the US.

SOURCES & CITATIONS

1. [Ads in AI Mode expand to new markets, Google](https://blog.google/products/ads-commerce/ads-in-ai-mode-global/?ref=promptthemarket.com)
2. [Alphabet announces third quarter 2026 results, Alphabet](https://s206.q4cdn.com/479360582/files/doc%5Ffinancials/2026/q3/2026q3-alphabet-earnings-release.pdf?ref=promptthemarket.com)
3. [Google expands AI Search ads globally as core ad growth slows, TechCrunch](https://techcrunch.com/2026/10/28/google-expands-ai-search-ads-globally-as-core-ad-growth-slows/?ref=promptthemarket.com)
4. [Alphabet reports Q3 2026 revenue of $127.6 billion, 9to5Google](https://9to5google.com/2026/10/28/alphabet-q3-2026-earnings/?ref=promptthemarket.com)

FREQUENTLY ASKED QUESTIONS

Are Google AI Mode ads available in Australia?

Yes. Google says it is now scaling ads in AI Mode in Australia and nine other countries.

Which countries have AI Mode ads?

Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore, with Brazil, Mexico and the UK to follow.

How fast did Google Search revenue grow in Q3 2026?

12%, to US$63.35 billion, down from 17% in the June quarter.

![James Dore](https://storage.ghost.io/c/e4/01/e4017178-c1da-4131-80aa-35f02cb5b999/content/images/2026/09/james-dore.jpg)

[James Dore](https://www.promptthemarket.com/james-dore/)

James Dore is founder and editor of Prompt the Market and Strategy Director at Bushnote, a Sydney strategy, SEO and AI search agency. He has a background in strategy, media and financial services, and led consumer product marketing at MONEYME. He writes on AI search, answer engines, technology policy and media economics.