Search marketing is at the nexus of new opportunities in the age of AI. Search, historically one of the highest intent and conversion channels for marketers, is seeing a new generation of innovation. Companies like Perplexity and OpenAI, alongside Google, infuse context-rich, conversational-based experiences that make the traditional search engine results page (SERP) seem dated. Efficient, interactive, query-and-answer responses that feel much more frictionless are beginning to shake up the status quo of keyword searches that return lists of blue hyperlinks.
The duality is forcing new ways to look at paid search and how advertisers can more natively fit into this experience. New ad formats like AI Overviews (AIO) from Google are debuting. Perplexity is pushing boundaries by rethinking the entire advertising paradigm, and OpenAI has yet to unveil its advertising model. Will we see emerging leveling of the field from the likes of Mozilla, Duck Duck Go, Brave and others in 2025? Regardless, we, as marketers, can start to anticipate possibilities for playing where the game is going. Here are four things we are excited about as the new era of search evolves:
Even in the new search paradigm, we anticipate that 1P data will be key to unlocking bidding, targeting, audience curation and generally powering media regardless of the channel and tactic.
Pro Tip: Ensure you have AI readiness as part of your media stack. Check out our CM NextGen experience to get all the pieces in place, including a Cloud Landing Zone, Data Movement Pipes and an Ad Server.
Google’s emerging AIO formats showcase the potential of new ad spots. Currently, there is no disruption in the workstream to serve these new ad types alongside pMax and Shopping, and it appears to function off the same Google auction and adheres to the same Google identity graph as all their products work today.
However, consumer consumption will test AIO effectiveness as these formats take over the highest part of the page, and cost will follow. But what is worth watching is how they and other emerging formats tie in with other product areas that Google holds, like YouTube and Maps. There are concerns with reporting, segmenting, API availability and advertiser control of these new formats. Still, with it being such a fresh new release, we can anticipate more to come.
Pro Tip: Test and learn! SEM strategies may shift as AIO and conversational search mature. As formats like AIOs become more popular, CPC in traditional SERP spots may decrease. Ongoing and incremental A/B testing will help give brands the trust and insights to play where the puck is going.
While we wait for OpenAI to get closer to an advertising practice within releases like their SearchGPT, we can look to Perplexity. With brands and agencies like Whole Foods, PMG and Universal-Mcann already lined up as early testers, we are excited to see what new opportunities arise.
Perplexity is testing a new model with “Sponsored Follow-Up Questions.” In this paradigm, brands can pose follow-up questions to a user query. For example, if someone searches for the best restaurant in Denver, the tool can ask a follow-up question: "Would you like to make a reservation at this sponsored [insert] restaurant”? This creates a more native feeling for ads in this conversational mode. But is it as effective as the time-tested exploratory search link and image return experience we are used to today? Time will tell. The most interesting thing about Perplexity we are keeping our eye on is their experimentation for a new billing model based on CPM and how their version of an “auction” (if any) and identity graph will shape up to fuel a scalable advertising ecosystem.
Pro Tip: Keep a pulse on emerging new channels!
The rise of new search formats and channels necessitates a sophisticated approach to attribution. MMM, powered by AI, will continue to evolve and become increasingly needed to accelerate measurement, analysis and read-outs. With the already unbelievable amount of fractional attribution between channels, adding even more will continue to push the old days of Excel sheet hacking or canned models from third-party platforms to the corner.
Marketers are increasingly prioritizing business outcomes like blended customer acquisition cost (CAC) and profit. This focus necessitates the integration of business intention, first-party (1P) data, and click-stream data from sources like search and digital channels. These advancements are pushing the boundaries of media attribution. As a result, artificial intelligence will become essential in this evolving landscape. We are very excited for tools like Meridian from Google to accelerate capability at scale.
Pro Tip: Adswerve is a certified Meridian partner. Reach out to learn how we can help your organization.
It is exciting to see so much change and potential on the horizon. Search is taking a transformative leap, and we are gearing up for great things to meet this next generation of marketing.
If you want to dive into ways we can help you prepare for the future of search, schedule a 30-minute call with one of our experts. We’re happy to help.