Why Google and Microsoft’s “AI Search” plans are angering advertisers

For years, searching the internet has been a significant advertising opportunity, be it for or for




, or advertisers. Now that the search is evolving, with the injunction of


With advertising becoming more talkative than ever, advertisers seem to disagree, feeling left out.

Google and Microsoft are adding ads to their AI experiments without offering an opt-out option, according to ad buyers who spoke to Reuters. This seems to have angered some brands and could lead to even more backlash from the industry.

Microsoft and Google are testing ad placements in their AI-powered search capabilities, with Microsoft inserting ads into them


‘s chatbot responses and Google uses existing ads to test placements in theirs

Generative search experience

special feature.

Although both companies are soliciting feedback from ad buyers, they can’t really opt out of testing just yet.

Advertisers are unhappy with giving them control over ads on “

AI search

According to ad buyers, brands are reluctant to allocate their marketing budgets to features that only a select few users can access. In addition, advertisers prefer to be in control of the placement of their ads on the web, being careful not to be associated with inappropriate or inappropriate content, and none of the companies does not give them the opportunity to do this.

Both Microsoft and Google have stated that their AI search capabilities are subject to the same restrictions and blocked keyword lists as their regular search engines to ensure proper ad placement.

Advertisers are concerned about testing new ad placements without their consent, prompting some to temporarily halt spending on Microsoft.

Wells Fargo

keeps part of its advertising budget off the platform.


power max

is called an analytical “black box” because their AI-powered tool selects ad placements without disclosing how the algorithm selects display location.

In addition, there are concerns about Microsoft’s transparency reporting, specifically its lack of access to reports on search term triggers and ad performance on generative AI experiences versus traditional search ads. According to Lynne Kjolso, Microsoft’s VP of Global Partners and Retail Media, product teams prioritize their development for transparency reports.

Advertising agencies are also concerned about how search engines will prevent ads from being served based on incorrect AI responses. Kjolso argues that Bing’s web information can serve as a “grounding mechanism” for large language models, which can reduce the likelihood of hallucinations.