The news: The Gemini app has reached one billion users, making it the fastest-growing product in Google’s history. Google simultaneously announced plans to expand ads in AI Mode to international markets, along with debuting multiturn ads in AI Mode in the US, as it continues efforts to push beyond traditional search.

The milestone gives Gemini the potential to become a significant channel for consumer discovery and possibly commercial activity. Expanding ads in AI Mode also shows that Google is actively developing ways to monetize AI-powered conversations.

Zooming in: Google has previously left open the possibility of introducing ads to Gemini, though it has not announced concrete plans to do so. But massive AI development and operating costs create an incentive for Google to explore additional monetization methods. Its expansion of ads in AI Mode, alongside competitors’ efforts to monetize AI experiences, suggests Gemini could eventually follow suit.

Other AI chatbots have turned to advertising as a key monetization opportunity:

• ChatGPT, Gemini’s main competitor by user base, debuted ads earlier this year, despite OpenAI previously denying plans to bring ads to the popular AI chatbot. ChatGPT’s introduction of ads was largely driven by the company’s need to monetize its products as it has continuously missed revenue goals.
• Microsoft’s AI chatbot Copilot has included ads below AI responses since 2023. Microsoft data shared with EMARKETER in January showed that ads had so far delivered a 153% increase in clickthrough rates and 54% improvement in user experience compared with traditional search. The results suggest that ads in AI experiences could offer marketers stronger engagement, potentially strengthening the case for Google to explore advertising in Gemini.

Still, Google will need to weigh the monetization opportunity against the risk of alienating Gemini’s larger user base. Although competitors like ChatGPT and Copilot have already introduced ads, 41.6% of AI users dislike ads in chatbots, per Semrush, suggesting that Google still must consider how bringing ads to a new surface could affect user adoption and engagement.

Implications for marketers: A large and fast-growing user base, combined with Google’s advertising efforts for other AI products and its competitors’ advertising push, increase the likelihood that Gemini will eventually introduce ads.

More broadly, marketers need to prepare for a shift toward AI-driven discovery habits.

• Marketers must assess how consumers increasingly discover and evaluate products through conversational AI. Develop clear, useful product information that can support AI interactions, while monitoring platforms introducing new ad types and placements.
• Prioritize user experience in ad creative and messaging. Conversational AI can feel more personal than traditional search results, and consumers are more hesitant to accept ads in these environments. AI ad creative should address likely consumer questions to encourage acceptance rather than annoyance.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.