Google Play Store tests full-on Ads in search suggestions
Google Play Store is rolling out a new wave of search ads that are clearly marked with an "Ad" badge. Android expert Mishaal Rahman first discovered the ads and sparked a conversation on Twitter, revealing that users in the UK, Japan, and several other regions are already seeing them when tapping the search bar. The ads are appearing mixed in with Google's proactive recommendations, and the new interface for search suggestions includes more information about the apps, such as the user rating and total number of downloads.

While Google initially assured users that the targeted promos for apps were not ads but proactive recommendations, the new ads seem to be a significant part of Google's business model. This move to full-on ads in search suggestions could be a new revenue stream to offset some of the losses that Google has been taking in Play Store revenue due to forced third-party billing systems. The company recently announced plans for alternative Play Store payments in the UK, India, and South Korea, which would see the company take a reduced cut of app sales.
It is unclear whether the ads are being rolled out to all users or only those with the suggestions feature enabled. However, with the ads being clearly marked as such, users should be able to distinguish between the proactive recommendations and the new search ads. As Google continues to explore new revenue streams, it remains to be seen how users will respond to the new ads and whether they will impact the overall user experience of the Play Store.