Proactive Investors - Bank of America (NYSE:BAC) analysts reiterated their buy rating on Google parent Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG) stock following the annual Marketing Live event on Monday.
During the event, Google announced that it will begin testing search and shopping ads in AI Overviews, which provide an AI-generated snapshot with key information and links to resources that support the information in the snapshot.
AI Overviews is an experimental AI integration design by Google’s Search Labs.
Google noted that AI Overviews have improved search usage and user satisfaction, leading to visits to a broader mix of websites.
Bank of America said of the development: "Broader rollout of AI overviews last week and now integration of ads indicates that Google continues to make progress with both Gen-AI Search use cases and monetization."
The new ad experiences include a search ad feature that assists users with complex commercial decisions.
For example, Google can recommend storage options based on user-uploaded photos of possessions.
This feature is in testing and is expected to be widely available later this year.
New use cases
Additionally, immersive shopping ads featuring 3D spinning ads and virtual try-on for apparel are planned. Google will also launch an enhanced user-driven experience that includes product videos and recommendations.
"Improved Search functionalities and experiences can unlock new use cases driving higher query volumes and higher search monetization," said BofA.
Google also introduced new advertiser tools such as Enhanced PMax creative controls, which allow advertisers to upload brand guidelines for automated asset generation.
Enhanced image editing tools will enable advertisers to add new objects and extend backgrounds in ads.
New brand profiles on search, inspired by Google Maps' Business Profiles, will also be available.
According to BofA: "New Gen-AI integrations can further boost advertiser ROI attracting incremental ad spend. These integrations can also drive back-end cost savings for advertisers, some of which can potentially be reinvested into the platform."