Avant Post - Opening Pandora's Search Box: Google vs AI with Rogue Ex-Googler, Ben Kruger
DTC Podcast · with Ben Kruger · August 12, 2023 · 56 min
Summary
Google is at a crossroads with AI, facing an "Innovator's Dilemma" that threatens to upend its core advertising business and significantly impact web publishers. This episode dissects how Generative AI, specifically Google's Search Generative Experience (SGE), will drastically alter search result dynamics, reduce click-through rates for publishers, and likely skyrocket eCPCs for advertisers. Ecommerce operators need to understand these shifts to adapt their organic and paid strategies before they get left behind.
Key takeaways
Anticipate a significant reduction in organic click-through rates from Google Search as SGE provides synthesized answers directly, requiring publishers to diversify traffic sources.
Prepare for "exploding" eCPCs and a more competitive paid acquisition landscape on Google as advertising inventory shrinks and demand remains high.
Evaluate alternative advertising channels and brand-building strategies as traditional keyword-based search advertising becomes less effective and more expensive.
Explore how Google's AI-enabled cognitive search, combined with Google Shop, could create new opportunities for product visibility and integrated shopping experiences for e-commerce businesses.
Re-evaluate content strategies to focus on unique value propositions that incentivize users to click through past AI-generated summaries, rather than relying solely on high search rankings.
Join Chris and Eric with special guest and rogue ex-Googler, Ben Kruger as we discuss the Google's innovators dilemma and opportunity as it relates to the roll out of AI! * The Big Catch-22- Google can't ignore the inevitable path to generative results- But how can it do this without sacrificing the publisher & advertiser ecosystem?- Odds are they'll probably attempt some kind of fence-straddling compromise. It's unclear if this is tenable. * Fresh-Squeezed Organic- No matter how it's spun, SGE is basically all bad news for web publishers- There will be less "listings" in generative answers, and less incentive for users to click through- How will publishers adapt to a world where Search becomes a less accessible channel? * Just Not Clicking- Similarly to publishers, advertisers will likely find clicks a lot harder to come by- eCPCs are almost certain to explode higher as the current demand levels chase far less inventory- How will advertisers adapt to an increasingly winner-take-all ecosystem? * Conclusion- Does The Search Box go the way of the DVD (dead), or Cable TV (diminished, but still here & part of a larger platform)?AI-Enabled Cognitive Search: Google has introduced a real-time cognitive search that combines Bard AI-synthesized content with regular Google search results. When combined with Google Shop, this feature could prove beneficial for websites and e-commerce enterprises, providing a unique selling point for Google.
Anticipate a significant reduction in organic click-through rates from Google Search as SGE provides synthesized answers directly, requiring publishers to diversify traffic sources.
What does this episode say about paid acquisition?
Prepare for "exploding" eCPCs and a more competitive paid acquisition landscape on Google as advertising inventory shrinks and demand remains high.
What does this episode say about ai & automation?
Evaluate alternative advertising channels and brand-building strategies as traditional keyword-based search advertising becomes less effective and more expensive.
What does this episode say about founder & leadership?
Explore how Google's AI-enabled cognitive search, combined with Google Shop, could create new opportunities for product visibility and integrated shopping experiences for e-commerce businesses.
What does this episode say about organic & seo?
Re-evaluate content strategies to focus on unique value propositions that incentivize users to click through past AI-generated summaries, rather than relying solely on high search rankings.
