The Digital Deep Dive With Aaron Conant
Generative AI and the Future of Search Marketing
Thu May 04 2023
Generative AI in Search Marketing
00:04 - 05:41
- Generative AI is transforming the search marketing world.
- Many brands are interested in AI but struggle with how to use it.
- Net Elixir has built its own analytical AI marketing platform to identify highly curated audiences and target them through various channels.
- Generative AI is a new industry that has fundamentally changed the entire industrial landscape forever.
- The quantum of change brought by generative AI is not yet fully appreciated.
- In the search marketing space, generative AI disrupts or changes the classic lens and has potential implications for advertisers.
- There are three areas to consider when discussing generative AI in search marketing: how it changes the classic lens, potential impacts or consequences for advertisers, and sensitivity towards these changes.
Challenges and Opportunities in Search Results
05:16 - 10:37
- Less than 20% of people go to the second page of search results.
- 80% of people prefer speed and getting relevant information on the first page.
- Almost half a million searches happen every day that are brand new.
- 15% of all Google searches in 2021 were brand new.
- The first page of search results is becoming cluttered with ads, pushing organic listings down.
- Conversational search could be a solution to finding relevant results quickly.
Chat GPT and Microsoft in Changing Search
10:21 - 15:37
- Chat GPT and Microsoft are changing search by allowing users to engage in a series of chapter conversations that lead them to their desired answer.
- This fundamentally changes search by giving refined answers instead of having to filter through ads and other irrelevant information.
- Google has become more of an advertising bill rather than having a conversation, which is why chat GPT and Microsoft are important.
- Prompt engineering allows for smarter questions and better responses, making the process more personalized.
- Conversational search expands the entire search universe, making it easier for non-native English speakers or those with grammatical issues to find what they need.
- The conversational aspect also saves time compared to scrolling through infinite search results.
Expanding the Search Universe with Conversational Search
15:21 - 20:39
- Conversational search expands the addressable universe by 33% over the number of people who are certain.
- Microsoft's smart move is integrating chat GPT everywhere, and LinkedIn would have the same capability.
- Easy accessibility can impact information and reduce friction points, making search more humane, friendly, and inclusive.
- The entire search category has expanded into something beyond search; it could be chat, discovery, or anything that you engage in your life.
- There may be an opportunity for a connected ecosystem with conversational search at the center to make more incremental money through a different monetization model like cost per action or cost per result.
- The classic CPC model would be very disruptive in conversational search because of its relevance and lack of advertising.
- A bigger ecosystem whereby users are directed to a website from conversational search is a possibility for monetization.
Monetization and Impact on Digital Marketers
20:16 - 26:08
- Conversational search may lead to a bigger ecosystem with new monetization models.
- The classic CPC model is not going away, but there may be tie-ins from advertising in standard CPC with results from conversation search.
- SEO rules would need to be completely changed if conversational search takes off.
- Interruptions to the hands would kill the sense of conversational search, but monetization avenues will emerge and be different from what we're used to.
- Google will find different ways to make money despite the impact on digital marketers.
- Digital marketers are struggling with customer acquisition costs, deprecation of third-party cookies, KPIs, and AI.
- The shift is too big for humans to comprehend how to maximize it. We tend to look into anything on the future with strong focus on our past preconceptions.
- Marketers are obsessed with productivity and ROI. Productivity is easy to show and helps bonuses at the end of it.
Adapting to Market Changes and Embracing Innovation
25:41 - 30:51
- CMOs have an average tenure of 1.5 to 2.5 years and prioritize productivity that can be easily measured to boost their bonuses.
- The post-COVID struggles, COVID depreciation, and changing consumer behavior are causing massive changes in the market.
- Conversational search is becoming more popular due to people's aversion to constant advertising and desire for personalization.
- It will take two to five years for the market to settle down after such a magnitude of change.
- Marketers should build a culture of experimentation and embrace failure as a means of learning.
- Companies should rethink their organizational structure to encourage innovation from all levels and provide psychological safety for sharing ideas.
- A digital R&D budget can help companies test and fail frequently in order to learn what works.
Fostering Creativity and Innovation
30:25 - 35:56
- In R&D, most experiments fail but you learn a lot from them.
- Democratize idea generation process and give everyone a safe space to come up with ideas.
- Annual innovation context can spark creativity across the organization.
- Psychological safety and space to experiment is important for creativity.
- Chief AI officer will be present in most large companies as AI touches every department.
- Innovation is an outcome of how quickly you're able to fail and encourage failure.
- Smaller businesses should lean on concept and build their own knowledge ecosystem by identifying people who are more informed about this particular space than them.
Prioritizing Innovation and Building a Knowledge Ecosystem
35:32 - 41:16
- Businesses need to make a fundamental change in how they operate and focus on innovation.
- CEOs should spend at least 10% of their time focusing on the future and innovating.
- Small businesses need to prioritize innovation even more due to limited resources.
- Asking questions about your company to chat GPT can help inform large language models and potentially impact SEO and conversation search results.
- Mapping out each task and challenging teams to find ways chat GPT can save time can increase productivity.
Embracing Change and Leveraging Bing
40:48 - 46:16
- Using chat GPT can increase productivity and energize the entire company.
- Challenging the team to come up with productivity hacks for an ultra-federal world can make them feel more secure.
- Unleashing creativity within the team can lead to new use cases that were never thought of before.
- Bing has shown innovation and should be treated as a separate individual channel.
- Recommended clients to invest 15-20% more in Bing budgets due to a shift in searches coming to Bing.
The Future of AI and Digital Marketing
45:58 - 49:30
- Bing's percentage share may be dramatically different in six months.
- AGI will democratize innovation and redefine industry equations.
- Microsoft and Bing will be important players in AGI.
- AI is here and it is good, so embrace it.
- AI can democratize the entire organization.
- Empower your team to innovate and fail faster.
- The digital marketing channel ecosystem is going through a massive shift.
- Build your own knowledge ecosystem to succeed with AGI.