ChatGPT’s ad strategy: a wake-up call for Google?

Luke Meredith

Google Search-dependent business owners may be faced with a paradigm shift in the way people behave when engaging with online content in the near future.

OpenAI, the force behind ChatGPT, is reportedly introducing a free ad-supported level for its extremely popular AI chatbot – a development of far-reaching implication for Alphabet-parent Google and the digital advertising landscape in general.

ChatGPT from OpenAI already has 800 million week-over-week active users. This is double the number of its figure from just under 18 months ago.

Google’s response has been swift. The corporation has introduced “AI Mode”, a chatbot-style search interface now being introduced in the United States, which is a follow on to AI Overviews. These kinds of tools aim to replicate the conversational interface users increasingly demand from sites like ChatGPT, yet the long-run viability of Google’s model is now in danger.

Adding fire to the flames are federal antitrust cases against Google that threaten its chokehold on default search engine agreements like a prized contract with Apple worth over $20 billion annually, sources say. An August remedy ruling could reshape those agreements, further weakening Google’s grip on Web discovery.

For business founders, this rapidly evolving landscape presents threat and opportunity. ChatGPT’s incursion into the ad landscape can potentially bring new pathways to targeting shoppers based on unprecedented knowledge of intent of users. But the transition from old search habits means rethinking digital marketing strategy – and in a rush.

Ad campaigns that have long depended on Google’s algorithmic ranking may need to be completely rewritten. If OpenAI is able to integrate ads without compromising the user experience, it would redefine sponsored content in the age of AI. Forecasters expect future ad types to emphasise utility and applicability over visibility itself and match advertising to the user’s actual purposes instead of padding results with plugs.

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Luke Meredith

Content Editor at Engage Web

At home in both the digital sector and the world of communications, Luke thrives on deadlines and has held roles in healthcare, retail and digital marketing, gaining a sound knowledge of a wide range of sectors. He’s a massive swot as well, holding a first-class degree in BA Communication and Media, and now uses his writing skills and keen editorial eye in his role as Content Editor here. Luke helps to oversee our clients’ content requirements, while also looking after a pool of freelance writers across three continents.