Key insights
- The author expresses concern that Google's AI model, Gemini, may negatively impact Google's advertising revenue. While Google reported positive advertising revenue guidance, the author believes Gemini's ability to provide information directly reduces the need for users to interact with Google Ads. This raises questions about the sustainability of Google's advertising business model in the face of advancements in AI-powered search.
ER stated positive advertising revenue guidance and that AI has not hurt that part of their business. At the same time, Google is being hyped lately for the success of Gemini. I love how Gemini pro can help me find information and diagnose problems without having to search up YouTube videos. i’m definitely interacting less with Google ads now. In addition when I do use Google to search that Gemini summary at the top is usually enough to get the info I need.
If Gemini is as useful for everyone else, then it has to impact the ad business.
Maybe Gemini is not as successful as they claim, or maybe they do see how it will impact advertising revenue.
I don’t see how two things can be true at the same time
BTW, I do not own any shares, thinking about starting a position
Thoughts?