Google, Naver push ads into AI search products

Google and Naver are moving ads into AI search tools as generative AI changes search and raises computing costs.

Google signaling openness to ads in Gemini and Naver planning ad tests in AI Briefing in the second quarter.

Philipp Schindler, Google’s executive, said ads could be useful in AI products, though the company was not rushing plan.

Google is also testing paid placements in AI Overview.

Naver said that first-quarter revenue rose 16.3% year on year to 3.2 trillion won (US$2.22 billion), and will test answer-style ads in AI Briefing in the second quarter and expand them in the second half.

The company has also partnered with ad tech firm Criteo on ad tools and commerce data.

🔗 Source: The Korea Times

🧠 Food for thought

Implications, context, and why it matters.

AI search is pushing more queries into a zero-click economy

Adding ads responds to a change in how people use search, shaped by tools such as Google’s AI Overview.
When an AI summary appears, click-through on standard search links falls from 15% to 8%, a March 2025 Pew Research Center study found 1.
Links inside the AI summary get clicks only 1% of the time, putting pressure on publishers that rely on traffic 1.
For Google, this change disrupts much of search. For Naver, it fits an ad system already built around semantic analysis (technology that interprets the meaning and context of words) to match user intent with landing page content instead of fixed keywords 2.

Data deals and brand protection are reshaping ads

The Naver-Criteo partnership combines Naver’s ad business, including AdVoost AI, with Criteo’s commerce intelligence. Criteo says it draws on proprietary commerce data from more than US$1 trillion in annual sales 3.
The plan extends Naver-powered ads to outside media channels and improves campaign measurement in South Korea 4.
Advertisers are shifting from chasing clicks to protecting brand placement inside AI-generated answers.
Some companies are raising spending on ads tied to their own brand search terms by as much as 20% to stay visible when AI answers include rival links or online marketplaces 5.