Google’s search advertising revenue increased 19 percent in the first quarter of 2026, reaching $60.4 billion, while its network revenue supporting third-party publishers continued a two-year decline, falling below $7 billion for the first time, the company reported.
The trend suggests Google is increasingly monetizing search traffic on its own platforms rather than through its extensive network of publishing partners, according to analysis by Bloomberg.
Meanwhile, Microsoft’s Bing search engine reached 1 billion monthly active users for the first time, with its search ad revenue climbing 12 percent, Microsoft CEO Satya Nadella announced.
Despite the reported user milestone, Bing’s global search market share remains around 5 percent, StatCounter reported, raising questions among industry analysts about Microsoft’s user metric definition.
Independent studies have indicated that Google’s AI Overviews, which provide summarized answers directly in search results, correlate with significant reductions in publisher click-through rates and overall search traffic.
Research by Ahrefs and Chartbeat suggested that publishers experienced notable drops in referral traffic from Google searches following the rollout of AI Overviews.
Liz Reid, head of Google Search, previously stated that AI Overviews aim to provide comprehensive answers, a development that some publishers fear could further reduce traffic to their sites.
Philipp Schindler, Google’s chief business officer, noted in an earnings call that the company was focused on evolving its search experience, including integrating more AI-powered features.
The IAB/PwC Internet Advertising Revenue Report for 2025 had already highlighted a challenging environment for digital publishers, with growth increasingly concentrated among major platforms.
Microsoft CFO Amy Hood emphasized the company’s commitment to expanding its search presence and leveraging AI to enhance user engagement during an investor call.
Sundar Pichai, CEO of Alphabet, reiterated the company’s focus on AI innovation across all its products, including search, in a statement accompanying the earnings release.
Analysts from Seer Interactive told Axios that the divergence between Google’s core search revenue and its network revenue could accelerate, posing ongoing challenges for content creators reliant on ad placements.
Source: Search Engine Journal
