Tomasz Tunguz (Theory Ventures) · 2024-08-06 · 667d

Invisible Ads in Generative Search: The Future of AI-Powered Advertising

As generative AI reshapes search, traditional ad models will likely evolve into context window auctions where advertisers pay to inject content into LLM prompts. The seamless integration of sponsored content with organic results creates opportunities for new search entrants to monetize and compete with Google, though risks of deceptive practices and user unawareness present challenges.

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Metrics in this report

Apple Revenue Share from Google Search Ads

36%

actual

iPhone and iPad search ad revenue

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