The Future of Search: Generative AI and Chat-Based Search

Quick overview:

  • Search engines are incorporating generative AI like ChatGPT to create a new chat-based search feature.
  • Chat-based search combines chat application style with search engine capabilities for a more conversational search experience.
  • Chat-based search understands user queries, providing relevant results for more personalized interactions.
  • Google’s integration of generative AI in search will change user interactions and challenge conventional search approaches.
  • Benefits include dynamic and iterative searches, improved ad relevance & user experience, and potentially increased time spent on search results.

There’s a significant shift underway in search engine outcomes pages (SERPs), with generative AI being utilized by both Google and Microsoft to offer searchers a brand new way to find the information they want.

What is Chat-Based Search?

Chat-based search is a new feature that integrates the conversational style of chat applications and generative AI like ChatGPT with the comprehensive search capabilities of search engines like Google or Bing. Chat-based search uses natural language processing to understand user queries and provide more relevant results.

Why is it important?

Google is currently testing the integration of chat-based generative AI into the search experience, which will significantly reshape how users interact with search engines and challenge conventional search strategies. Chat-based search allows for more personalized and conversational interactions, improving the user experience and increasing engagement.

Generative Search Results And Ads On Google

Dynamic Search Process

The chat-based interaction allows users to ask follow-up questions, enabling a more dynamic and iterative search process. This implies that users can dive deeper into topics, making the search experience more informative.

Impact on Ads

Ads seamlessly blend into the Generative Search Experience. However, this integration can push down traditional organic results and ads, requiring advertisers to strategize for optimal ad visibility.

Impact on Brands

With organic content being pushed down, it will become even more crucial for brands that might have been hesitant in their search investment and were relying on organic search results to run search ads to remain competitive.

What can advertisers expect?

Increased Ad Relevance

Generative AI will allow for more targeted ads, leading to higher click-through rates and more conversions.

Improved User Experience

As generative search results become more relevant, users will have a more positive experience and be more likely to engage with ads.

CPC Increase

With ads integrated into conversational results, there will be more places for advertisers to show ads. However, the space for ads that are visible above the fold is decreasing, likely resulting in increased competition and a rise in CPCs.

Increased Time Spent on SERP

In the future, users may spend more time on the SERP within Google or Bing, engaging in entire conversations with AI-driven chats.

Takeaways & Next Steps

Ad Optimization Tips

Due to the newness of the search experience, there might be limitations in advertiser controls. However, it’s advisable to enable broad-match keywords combined with smart bidding and conversion tracking to ensure ad relevance.

Continued Evolution

Experimentation Phase

Google is currently offering an experimentation phase in Search Labs. This provides a valuable opportunity for eligible accounts to test strategies and adapt them based on the evolving Generative Search Experience.

Chat-based search is redefining how we explore information. Stay updated and prepared as this innovative search experience continues to evolve.

—Dominika Kochmar, Senior Strategist, Ready Set Rocket