Two weeks after selling off thanks to a revenue miss that followed undisclosed ad product changes, Alphabet/Google (GOOGL) is unveiling an ad product that will let it finally start monetizing Google Search's home page, as well as better monetize YouTube's main feed and Gmail.
The solution, known as Discovery ads, will show photo ads that promote products and services that Google thinks a particular user would be interested in. Notably, they'll appear within Google Discover -- the personalized news feed that now often appears on the mobile Google Search home page and app -- and YouTube's main feed in a manner very similar to how ads appear within Facebook (FB) and Instagram's feeds. They'll also appear on Gmail in a manner similar to existing Gmail text ads.
Separately, Google is launching Gallery ads, a new search ad format that shows a series of product images users can swipe through (echoes of Facebook's Carousel ads). And the company is making its various travel services, such as its flight and hotel search tools and its trip-planning services, available on a single website known as Trips.
The launch of Discovery and Gallery ads acts as a reminder of how much room Google still has to better monetize Google Search and YouTube activity as it contends with near-term headwinds related to ad changes that many think are related to where and when YouTube ads are shown, and which the company insists have been made with the long-term interests of users and advertisers in mind. Discovery ads in particular have a lot of potential, given that Google's Discover feed already reaches over 800 million users and (given the ubiquity of Google Search) is likely to reach over one billion in time.
Meanwhile, to the extent that Trips makes it easier for consumers to make travel bookings on third-party websites and apps (Priceline, Expedia, etc.) that Google takes a revenue cut on, its launch strengthens Google's giant travel search ad business, which was once forecast by travel site Skift to produce more than $14 billion in revenue in 2017.
Trips' launch also amounts to a fresh headache for rival metasearch travel platforms such as TripAdvisor (TRIP) and Trivago (TRVG) , which have already seen their top lines pressured by Google's travel-related moves.