AI Revolution: The Present and Future of Paid Search

Author's Update: Since the publication of this article in August 2024, Perplexity is preparing to launch a display advertising program in Q4 of this year.

Advancements in artificial intelligence (AI) have been remarkable, transforming various industries, including digital marketing. One key area poised for AI-driven change is the search landscape and how individuals both seek and receive answers to their questions. As planning season approaches for many brands, it’s important to anticipate potential changes in user behavior and understand how these shifts might impact paid search campaigns. This article provides a high-level overview of the changes in the search landscape, examines the impact of new AI-based search engine alternatives on traditional search traffic, evaluates the necessity for new keyword strategies, and explores potential developments in the coming year. Finally, it discusses what these changes mean for advertisers and how they should prepare.

AI is changing how people access information

AI’s most significant impact on search marketing lies in how users find information and the nature of the content they receive. Although Google and Microsoft have used AI technologies for years, they are now becoming more prominent to users within the search engines as these platforms integrate similar AI features directly into their search results pages in response to new competitors. Meanwhile, AI is also disrupting the market as these new players enter the search market landscape with an AI-first product. These new options offer better interactivity, personalized responses, and more contextually relevant results than traditional search engines, which often struggle to meet specific and/or nuanced individual user needs. This article will focus on ChatGPT and Perplexity, two of the most notable platforms generating significant interest in the market. However, it is essential to recognize that a steady influx of new competitors is continually entering the rapidly expanding search space with AI products, many of which are creating niche offerings to differentiate themselves.

As of January 2023, OpenAI marked its position as a leader in the AI search platform arena, with its flagship product, ChatGPT, reaching a landmark of 100 million monthly active users. By April 2024, ChatGPT’s monthly traffic had soared to 2–3 billion visits, highlighting its rapid growth and casting doubt on the future of traditional search engines. Although detailed data on the specific percentages of tasks users request from AI engines is not yet available, it is evident that users are increasingly asking ChatGPT to perform functions beyond the scope of traditional search engines. This trend indicates that most interactions represent net new searches rather than a direct replacement for conventional search methods. Users are leveraging ChatGPT for various unique tasks, such as translations or content creation, reflecting its expanded role and the evolving ways AI technology is used.

ChatGPT isn’t the only AI solution transforming the search landscape. Experts have praised Perplexity, particularly its subscription-based Pro version, which offers access to advanced language models like GPT-4, Claude, and its own experimental model.

ChatGPT and Perplexity fundamentally differ from Google and Bing in how users interact with the platforms and access information. Some everyday use cases for these platforms include: