Microsoft, Google strategy to test AI search ads irks some brands

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Microsoft, Google strategy to test AI search ads irks some brands
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Alphabet's Google and Microsoft are inserting ads into AI experiments without providing an option to opt out of participation, an approach that has already rankled some brands and risks further pushback from the industry, ad buyers told Reuters.

that first became available last month. Google said advertisers are currently not able to opt out of the test.

Microsoft and Google said existing guard rails on their search engines, including lists of blocked keywords to prevent ads from appearing on those queries, would also apply to their AI search features. In an interview, Lynne Kjolso, Microsoft’s vice president of global partner and retail media, said the company aimed to make the introduction of the new Bing ad formats as “seamless” as possible for advertisers, without creating more work for them.

“This is not the first time that Google and Bing have expanded their networks while restricting control for advertisers,” said Samantha Aiken, a paid search supervisor at marketing agency Code3. While Microsoft representatives have been receptive to the concerns, they have not provided a timeline for when more transparency reporting would be available, two of the ad buyers said.

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