How ChatGPT Search aims to transform the digital economy

How ChatGPT Search aims to transform the digital economy

The search engine revolution, driven by tools like ChatGPT Search and Perplexity, could well reshape the digital advertising landscape in profound ways, far beyond a simple challenge to Google's dominance.

These AI innovations promise not only to change the way users search for information, but also to radically transform the way advertisers reach their audiences. Here's how...

1. Impact on advertising models 

The arrival of ChatGPT Search, powered by OpenAI's AI, represents an evolution in the way users interact with search engines and, by extension, with advertising:

  1. Conversational advertising: Ads on SearchGPT won't be simple banners or sponsored links. They will be integrated into the conversation, becoming less intrusive and more engaging. This could lead to lower disengagement rates with advertising, increasing the effectiveness of campaigns.
  2. Intent-based targeting With an advanced understanding of user intent, SearchGPT will enable more precise ad targeting. Advertisers will be able to serve ads tailored to each stage of the user's conversion journey, from information search to purchase intent.
  3. Rich media integration Unlike traditional text ads, SearchGPT supports media-rich formats such as images, videos and interactive content, offering a more immersive advertising experience.
  4. Advanced analysis As with Google Ads, SearchGPT will offer advanced analysis tools, but with a new dimension: conversational analysis. Advertisers will have access to deeper insights into how users interact with the platform and ads.

2. Opportunities and challenges for advertisers

  1. Search market diversification: SearchGPT paves the way for market diversification, offering advertisers an alternative to Google. This could reduce dependence on Google Ads and offer lower entry costs for newcomers to the world of online advertising.
  2. Innovative advertising formats: Advertisers will have the opportunity to create ad formats that blend more naturally into the search process, creating a better user experience and greater engagement.
  3. Less ad saturation: For the time being, SearchGPT presents a less saturated ad space, which means less competition for ad spaces and potentially lower ad costs.
  4. More precise targeting: SearchGPT's AI enables context-based targeting, increasing the chances of conversion by aligning ads with users' specific needs at a given moment.
  5. Creative freedom : Advertisers can now use a variety of formats, including rich media, to engage users in a dynamic and visual way, a capability that Google's text ads can't offer.

3. What impact on the advertising ecosystem?

The introduction of ChatGPT Search and similar technologies does more than offer an alternative to Google. They challenge the traditional online advertising model:

  • Reduced value of traditional ads: with immediate, contextual responses, users may click less on sponsored links, reducing the value of traditional ads.
  • Changing monetization models: While Google must protect its ad-based business model, OpenAI and others can experiment with new monetization approaches without the same constraints.
  • Decreased SEO: By providing summaries and answers directly, ChatGPT Search and AI-powered search engines could decrease organic traffic to websites... and not just a little: a potential drop of 25-64% in sessions is projected over time.

Preparing for the era of AI research

Let's weigh this up a little: while the technological revolution is here to stay, the revolution in usage is taking longer and longer.

As a reminder, Google processes 5.9 million search requests every minute, which represents almost 8.5 billion searches per day. By comparison, ChatGPT welcomes 208 million monthly visitors... There's still plenty of room for improvement for the Mountain View firm.

Google itself has already been rolling out its Search Generative Experience (Google SGE) in the US since May 2023.

The ongoing transformation of search and online advertising is not just a threat to Google, but an opportunity for advertisers to reinvent their strategies.

Adapting your advertising efforts to include platforms like ChatGPT Search will be crucial to staying competitive.

To find out more and discover how you can integrate these innovations into your marketing strategy, visit Genius.gorillias.io. It's time to reinvent your advertising approach with AI to create more engaging and effective experiences for your customers.