What Advertisers should know about ChatAI and how SEO will change forever

Ben Dietrich

Microsoft's partnership with OpenAI and its impact on Bing at the start of the year, Microsoft solidified its partnership with OpenAI through an investment and promptly integrated GPT features into its Bing search engine. This move proved wise, as it enabled free access and increased Bing's global market share from under 2% (pre-2023) to now 4%. If the trend continues, the market share could reach about 5% by the end of 2024.

Google's BETA tests with the Gemini AI

While Microsoft focused on implementation, Google conducted extensive BETA testing with its Gemini AI. These tests ranged from fully chat-based solutions to hybrids of Chat, Search Ads, and organic search results. The resulting version has already been released in the USA.

Integration of a search engine function in ChatGPT

It appears that ChatGPT will also integrate a search engine function into its chat interface, similar to the features Google introduced in the USA. This development could lead to tensions between OpenAI investor Microsoft and the OpenAI team, as ChatGPT would directly compete with Bing. Additionally, our team has noted that more ChatGPT features are being made inaccessible to the API and not to investor Microsoft, increasing tensions (e.g., ChatGPT's audio controls).

SEO in the Era of Chat-Based Search Engines

The BETA tests and the latest public versions of search engines indicate that users are increasingly being directed straight to specific product or service pages, known as offer pages. Traditional overview pages that include various offers are rarely shown, suggesting that SEO strategies must adapt to increase visibility.

Characteristics of an Effective Offer Page in SEO

A good offer page should contain all necessary information in structured data to be effectively utilized by AI tools. This is particularly important since a cluttered or convoluted layout, as is common with some budget airlines, makes comparing offers difficult.

First-Mover Advantages in SEA

Early feedback from Google's BETA tests shows that the new formats lead to better performance and higher Return on Ad Spend (ROAS). However, these advantages may diminish over time as more advertisers switch to the new formats.

Future Outlook: AdSpace vs. Organic Space

The AdSpace is expected to continue growing while the organic space shrinks. This trend shows that the major tech giants are eager to boost their advertising revenues by offering more relevant ads.

Comment from Our Team

In the coming years, it will be easier for consumers to perform standardized comparisons of offers. The new features of chat-based search engines and improved user interfaces contribute to optimizing the comparison process, which is particularly beneficial for B2B customers. Early movers could greatly benefit from these developments.

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