Google Grapples With AI’s Hit to Its Ads Juggernaut

What happened: Cleverly CEO Nicholas Verity said part of his roughly $2,000 daily Google search ad budget has gone unspent for about eight months because not enough people saw or clicked the ads. He attributes this to more people researching on AI chatbots. Key numbers: About $2,000 a day in Google ad budget; the pattern began about eight months ago; Cleverly has advertised on Google Why it matters: Verity said he wants to spend more with Google but believes search traffic is shifting to people doing their own research in large language models, a potential drag on Google's ads business.

Cleverly CEO Nicholas Verity said part of his roughly $2,000 daily Google search ad budget has gone unspent for about eight months because not enough people saw or clicked the ads. He attributes this to more people researching on AI chatbots.

Verity said he wants to spend more with Google but believes search traffic is shifting to people doing their own research in large language models, a potential drag on Google's ads business.