Google may be reconsidering its stance on advertising inside its Gemini AO app, according to comments made by chief business officer Philipp Schindler during the company's latest earnings call. While Gemini has so far remained ad-free, Schindler suggested that ad formats being tested in the AI Mode for Search could eventually extend to the standalone app, as reported by Business Insider.
Testing Ads in AI Features
Google is presently testing ads in the AI Mode, its conversational version of Search, and in AI Overview, but the Gemini app itself has not carried ads. Schindler stated, "Our focus right now is on AI Mode, but it's fair to say that we really believe a format that works well in AI mode would transfer successfully to the Gemini app."
Subscription Plans Prioritized
The Business Insider report further adds that Google is now prioritizing subscription plans for Gemini, bundling premium features such as Fitbit Premium and expanded photo storage. Schindler emphasized that the company is focused on "creating a really great user experience" but acknowledged that ads could play a role in scaling Gemini. "Ads have always been a big part of scaling products to reach billions of people," he said.
Industry Context and Competition
This move from Google comes as its rivals experiment with monetization strategies. OpenAI has begun rolling out ads in ChatGPT for free and lower-tier subscribers, while Anthropic publicly mocked the decision in a Super Bowl ad, pledging not to put ads in its Claude model. Google, with its massive advertising business across Search and YouTube, has the luxury of delaying ads in Gemini while building its subscription base.
Subscription Growth and Future Outlook
During the earnings call, Google reported that its overall subscriptions business has now reached 350 million paying subscribers, underscoring the strength of its premium bundling strategy. Whether ads eventually appear in Gemini will depend on how well Google can balance monetization with user experience.
