Gleb Andreev

11 months ago · 4 min. reading time · ~10 ·

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What Google’s New AI Search Engine Mean for SEO and Paid Ads

What Google’s New AI Search Engine Mean for SEO and Paid Ads

It has been a few weeks since Google revealed that they would be launching an AI-powered update to their search engine.

If you missed their announcement, Google now includes AI-generated answers to your questions in their search results. For instance, the response you would get from Google today if you asked "What's better for a family with kids under 3 and a dog, Bryce Canyon or Arches" would look something like the one below.

 

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It also isn't ending there. It also has an impact on transactional searches. For instance, you will now find results like this if you search for a "good bike for a 5-mile commute with hills" on Google.

The cool thing about the aforementioned result is that you can ask a follow-up question and have Google filter the outcomes. For instance, if I want an e-bike that can meet the requirements and is red, Google will filter the results and display what I'm looking for.

The best part is that you won't have to re-start your search. When you shop on a typical e-commerce site, you can filter results just like that. That is how filtering works.

 

So, what does this mean for SEO?

 

The majority of SEOs I've spoken to are panicking... The first thought that people have is that Google will rob me of my traffic.

Yes, you can lose some traffic as a result of this, and you probably will. However, it will also improve the user experience for those who use Google, which will increase Google's usage and traffic overall, which should help you continue to receive a lot of traffic from Google and possibly even more.

Danny Sullivan, Google's Public Liaison for Search, claims that Google Search drives more traffic to public websites each year.

This is true even in light of all the adjustments they have made over time.

Do you still recall asking Google about the weather in any city and getting a long list of websites in response?

That isn't the case anymore; they just display the weather.

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Google always displays the solution, whether you are looking up a stock quote, a definition, or a math question. They didn't end there. These changes have been made repeatedly, and there will be many more in the future.

 

Why?

They don't actually want people to stay on Google. They want to give users the best possible experience, that's why.

People panicked and declared SEO dead when they made all of those changes.

Heck, I used SEO primarily to create one of the fastest-growing businesses in the US, according to Inc Magazine. We were the 21st fastest growing business when we first appeared on the list.

And if that still doesn't persuade you, perhaps this will... Would you like to hazard a guess as to why Google won't stop sending visitors to websites and why you shouldn't be concerned?

I'll give you a hint: look at this Oberlo chart.

Google Revenue Breakdown

Google Cloud
$26.28 billion (9.4%)

 
  
 
 

Apps, hardware, and content
$29.06 billion (10.4%)

YouTube ads

$29.24 billion (10.6%)
Ads (Google Search & other properties)

$162.45 billion (68.1%)

Google Network ads
$32.78 billion (11.7%)

Source: Statista OBERLO

 

 

Google's annual revenue from ads displayed on network websites is an astounding $32.78 billion.

Consider what would happen if Google stopped directing SEO traffic to many of these publishers. What do you believe would occur?

Both their stock price and revenue would plunge.

Yes, they might be able to find a way to make up the difference, but I highly doubt they'll risk $32.78 billion.

Most of the time, these network sites do not use ads to entice visitors to their websites. Most of the time, the economics don't work out. More money would be spent on traffic from advertisements than they would make from them.

What do they then do? They prioritize organic traffic... social media and SEO.

Their income will be reduced by billions of dollars if they kill off their organic results and increase site traffic.

Now, this is not to say that these modifications won't harm some publishers. For instance, your affiliate revenue will eventually be crushed if you operate an affiliate marketing website that compares the six best toaster ovens, as this site does.

It's preferable for Google to use AI to provide the appropriate response. You, the searcher, will have a better user experience as a result.

Finding affordable flights is the same. Why would you want to look for "cheap flights" on a search engine like Google only to be directed to a different search results page like Kayak to view your flight options?

The user experience is awful. It would be more practical for Google to simply display the best flight option for you.

Although some publishers (and websites) will be harmed by this, overall the user experience is already improved. Google gains popularity as user experience improves, and you'll constantly see websites generating organic traffic (it may be more or less depending on the industry), but you should still be able to generate a significant amount of traffic.

Why? Google won't end its $32.78 billion revenue stream, to reiterate.

In addition, when you search for transactional terms like "good bike for a 5-mile commute with hills," as in the GIF I previously displayed (and below in case you missed it),

They are displaying natural outcomes. You ought to make more sales as a result of it. This would be advantageous because the user is showcasing your product and has a specific use case, so the conversion rates should be higher than if the user were to simply type in "red bike".

 

Well, how about paid ads?

 

The adjustments being made with AI should benefit paid advertisements.

Many of the affected queries don't contain transactional keywords.

In addition, since the example of "good bike for a 5-mile commute with hills" is transactional, you can bet that paid advertisements will be incorporated into those areas to increase revenue.

The organic results will suffer, but the paid results were also negatively impacted when they were first introduced.

However, we have grown accustomed to seeing both SEO and paid results on search result pages.

Remember that Google makes over $162 billion annually from its ads.

That much lost revenue is significant. They won't want to take any actions that could endanger that income.

So as an advertiser, you need not worry too much.

When users start receiving extremely specific results from Google, it should actually increase the conversion rate for paid advertisements as well.

The reason why marketers use long-tail keywords.

 

Conclusion:

Google's new AI search engine signifies a significant paradigm shift in the world of SEO and paid advertising. As AI continues to shape the digital landscape, businesses and marketers need to understand and embrace these changes. By staying up-to-date with AI-driven search trends, optimizing content for user intent, and leveraging AI-powered tools, businesses can enhance their online visibility, reach their target audience more effectively, and stay ahead of the competition. Embracing the power of AI in SEO and paid advertising is not just a necessity; it's an opportunity to unlock new levels of success in the digital realm.

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