Reimagining Paid Search with Generative AI

In the ever-evolving landscape of digital advertising, the introduction of generative AI (Gen-AI) platforms presents a transformative opportunity for brands to rethink their approach to paid search. The recent announcement by Perplexity to incorporate ad-supported native placements alongside their AI-generated responses has sparked a conversation about the potential for advertising to enhance or detract from this emerging user experience. Coming fast behind this announcement are rumors that Google is looking to offer a premium paid-tier Gen-AI search product that would likely be partially ad-supported as well.

How might advertisers meet this pivotal moment of change in how search will work going forward? Generative AI's promise to advertisers in terms of efficiency in targeting, placement, and optimization is clear. In-line asset development and optimization are already being added to products like Google's Performance Max and other services built on the existing ecosystem.

What about the experience for users as paid placements enter the stage on these Gen-AI-driven search platforms? While we are early in an accelerating adoption curve, we should envision ways to create more human, valuable, and enjoyable ad-supported search experiences.

The Challenge of Current Search Advertising Models

The shift towards Gen-AI search on platforms like Perplexity reflects a growing desire for a cleaner digital environment—one free from the overwhelming clutter of paid placements and sponsored ads on current SERPs (search engine result pages) that offer more clickbait than solutions. Ironically, generative AI's ability to generate low-quality content at scale threatens to exacerbate this issue. The dissatisfaction with existing search ads highlights a critical need for change, emphasizing the importance of creating advertising experiences that add value rather than noise.

We are early in the adoption curve and the relative scale is limited. Only an estimated 13 million or 4% of US internet users claimed to primarily do online searches using generative AI in 2023, however, adoption is increasing rapidly. Google is gradually deploying search generative experiences (SGE) to the masses as it gains comfort with its performance. If we re-create the frustrating ad experiences of the current SERP, we'll prove that advertisers shouldn't have access to nice things.

A Vision for Generative AI in Paid Search

I am personally splitting my searches between Google’s SGE for casual on-the-fly searches and Perplexity for more in-depth project-based research. With a tool like Perplexity, I can easily explore cited sources and go deeper into complex issues that benefit from a persistent understanding of my inputs, context, and goals.

These tools revolutionize the search experience, making it more conversational, personalized, and contextually relevant. Let's assume that the conversational "chatbot" style of search becomes the new norm based on consumer expectations and platform evolution. Let's further assume brands can build experiences with their standards and in their voice that are sufficiently robust to power native interactions on third-party Gen-AI platforms. In that world, advertisers have the chance to construct branded interactions in search channels that provide relevant value to users by being more:

Informative:

Providing more tailored information to the user's specific query and context, providing not just answers but enriched, meaningful content that resonates on a personal level. How might we go beyond how we currently use search in the brand experience journey to become part of a persistent conversation that is more aware of where you are on your path?

Imagine a news brand seeking to engage politically engaged voters early in the election cycle with a branded conversational news hub triggered by relevant election news searches and fueled by the publication's original reporting and editorial voice. An offer to subscribe to a personalized feed in the context would drive engaged traffic and subscription acquisition to the publisher.

Empowering:

Offering intuitive access to tools and actions within the search experience facilitates immediate engagement with the brand in a way that seamlessly integrates with the user's intent and journey while helping the user get the job done.

Imagine a restaurant platform helping you not only choose a table for a special date night by sharing summarized reviews by similar customers, but also book your Uber, pre-order drinks, and purchase tickets to a nearby show - all within the search experience.

Affirming:

Creating connections based on shared values and culture, affirming the user's identity and preferences through thoughtful, nuanced interactions.

Imagine searching for "trans-safe urgent care" and a welcoming local healthcare provider triggers an inclusive search experience with gender-affirming follow-up questions and social proof reviews from other trans and gender-expansive patients. This meets the user where they are in a way to builds salience and conversion.

Entertaining:

Injecting joy and engagement into the search process, transforming information discovery into an experience that delights and captivates.

Imagine a search for reviews of an upcoming movie. The studio could offer to provide you interactive reviews in the voice of featured characters and incorporate context from key scenes, immersing you in the film's world during the consideration phase.?

Redefining the Role of Search in the Brand Experience

Embracing the conversational nature of generative AI search transforms the interaction from an informational transaction to a dynamic dialogue, opening avenues for brands to build reputation and affinity in novel ways. While the challenges of data ownership, privacy, brand safety, and governance must be addressed, re-imagining paid search beyond click-bait to immersive personalized experiences elevates the role of search in the customer journey.

To fully leverage the emerging potential of generative AI in search advertising, brands can start now by focusing on creating experiences that resonate deeply with users and could be extended to the emerging world of Gen-AI search. This involves:

• Going deep on developing brand standards and governance models that can address the challenges and opportunities generative AI offers.
• Generating high-quality, search-optimized content for your brand that truly answers relevant questions for your audience. Explore how to make that content dynamically malleable with data-informed personalization in mind.
• Crafting interactions that reflect insight-driven understanding and empathy, recognizing and responding to the user's needs in real time. Consider these interactions as conversations where you can coach the user to better solutions that reinforce your brand's authority.
• Collaborating with platforms to develop experimental advertising placements that are seamlessly integrated into the AI-generated interaction, enhancing rather than interrupting the user experience.

Let's commit to making an ad-supported Gen-AI search future that doesn't suck!

Advertisers must leverage more creativity and deep insight to embrace the opportunities presented by generative AI. By adopting a human-centric approach, we can bring more value to people in the future of paid search activation. This is not just about avoiding the pitfalls of past advertising mistakes but about seizing the moment to create something with more empathy and thus, more sustainable brand impact.

By embracing how search behaviors will be changing, and focusing on creating advertising experiences that are informative, empowering, affirming, and entertaining, we can provide more value to the people we seek to engage. Assuming we can ethically and effectively manage trust, privacy, and data hurdles, the next chapter of ad-supported search could yield an experience that users not only tolerate but seek.