Why Google’s Search Generative Experience Matters to Advertisers

Why Google’s Search Generative Experience Matters to Advertisers

by Jessica Skopek Google

Google made its strongest commitment to AI to date at its annual developer conference, Google/IO. The company announced a number of changes to its core products as well as new capabilities powered by AI, especially generative AI. They include:

Bard Available for Everyone

Google’s Bard AI is a powerful tool that can be used for a variety of tasks, including browsing the internet, searching for information from photos, writing code, and working with other apps. Bard is available to everyone, and it does not require a waitlist.

Bard Plugins Are Here

Bard plugins are a new way to extend the capabilities of Bard. There are currently a number of plugins available, including plugins for OpenTable, Kayak, Spotify, Walmart, and Indeed. These plugins allow you to use Bard to do things like make restaurant reservations, book flights, create playlists, and order groceries.

Gmail Is AI-Powered

Google’s new “Help me write” feature in Gmail uses AI to help you write emails. Simply type in a one-line prompt, and AI will automatically generate the rest of the email for you. You can then refine the email as needed.

Google Photos Get a Dose of AI

The new “Magic Editor” feature uses AI to help you edit your photos. You can use Magic Editor to change the lighting, remove objects, and adjust your position in photos. Magic Editor makes it easy to edit your photos like a pro.

Search Gets an Upgrade with the Search Generative Experience

But perhaps the most significant change: the launch of a new search feature, search generative experience (SGE). SGE uses generative AI to share answers to queries in the form of complete “snapshots” of content instead of providing a few rich snippets and links to websites for more information. Search can unfold as a series of questions and follow-up questions that the searcher refines (similar to ChatGPT prompt).

At the event, Google’s vice president of of Search, Liz Reid, demonstrated SGE by searching for “why is sourdough bread still so popular?”. The search results appeared almost immediately, and above them was a rectangular orange section that pulsed and glowed with the phrase “Generative AI is experimental.”

After a few seconds, the glowing section was replaced by an AI-generated summary of the search results. The summary included several paragraphs about the taste of sourdough bread, its prebiotic abilities, and other factors that contribute to its popularity. To the right of the summary were three links to websites that Reid said “corroborated” the information in the summary.

On Google’s blog, Reid provided even more context. She shared the example of a searcher asking, “What’s better for a family with kids under 3 and a dog, bryce canyon or arches.” Normally, a searcher might break this one question down into smaller ones, sort through the information available, and start to piece things together themselves. With generative AI, search can do some of that heavy lifting for you.

When SGE becomes available, searchers will see an AI-powered snapshot of key information to consider, with links to dig deeper.

Google Search

Below this snapshot, you’ll see suggested next steps, including the ability to ask follow-up questions, like “How long to spend at Bryce Canyon with kids?” When you tap on these, it takes you to a new conversational mode, where you can ask Google more about the topic you’re exploring.

Context will be carried over from question to question, to help you more naturally continue your exploration. You’ll also find helpful jumping-off points to web content and a range of perspectives that you can dig into.

How Will Ads Work in SGE?

Google said that SGE will feature search ads from the start. Advertisers will not be able to opt out of showing ads on the new search experience, at least not initially. Google will be closely monitoring the performance of ad placements and experiences during this experimental phase.

SGE ads will be displayed in dedicated ad positions and slots, and will be labeled as “sponsored ads.” Google said it will continue to test and adapt ads so that they provide relevant and useful results for searchers.

Here are some additional details about how SGE ads will work:

  • Ads will be displayed in a variety of formats, including text, images, and videos.
  • Ads will be targeted based on a variety of factors, including the search query, the user’s interests, and the user’s location.
  • Ads will be subject to Google’s advertising policies, which are designed to ensure that ads are relevant, useful, and non-misleading.

SGE ads will be a “native part” of the new search experience. The company believes that ads can be a valuable tool for helping users find the information they need, and that SGE ads will be no exception. Here is a screenshot of ads in the desktop user experience of SGE:

Ads in Google Search

As Google Search evolves with the introduction of the SGE, it will be important to track how your ads perform in this new environment. However, as SGE is still in its experimental phase, you will not be able to immediately track how your ads perform differently in SGE versus the old Google Search.

The generative AI feature is still under development, but it has the potential to change the way people search for information online. By providing users with a concise and informative summary of the search results, the feature can help people find information quickly and easily. Only time will tell how SGE ads will be received by users. However, Google is confident that the new search experience will provide a more relevant and useful search experience for everyone.

Contact True Interactive

At True Interactive, we advocate on behalf of our clients. We are monitoring these developments closely and assessing how to incorporate conversational AI. Contact us to learn how we can help you succeed in all forms of digital advertising.

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How Microsoft Will Incorporate Ads into Conversational AI

How Microsoft Will Incorporate Ads into Conversational AI

by Héctor Ariza Microsoft

How will search engines such as Google Search and Microsoft Bing generate advertising revenue via conversational AI? This question has been hotly debated ever since Google and Microsoft launched their own conversational chatbots in their search engines. After all, conversational AI tools succeed by giving searchers concise responses instead of links to other sites. Google’s ad model depends on people staying engaged on Google Search clicking on links. Microsoft’s ad business, though nowhere near the size of Google’s, also depends on clicks and engagement.

Microsoft recently provided some guidance on this question. According to Kya Sainsbury-Carter, corporate vice president of Microsoft Advertising, the method of purchasing advertisements on Bing remains unchanged from its inception. However, a new feature now allows ads to be integrated into interactions with an AI chatbot. Advertisers will not be required to request for their ads to be included in the chat format, and they won’t be notified if their ads were displayed in this manner when they get performance reports.

She noted that whenever the AI chatbot provides a response, it includes a reference that can be viewed by hovering over the response. This citation may occasionally contain an advertisement link. Furthermore, image-based ads can be displayed following the chatbot’s reply. Companies aren’t required to create new content that replicates the style of a chatbot response. Rather, all text advertisements and other creative resources uploaded on Bing will be displayed in the new chat formats.

Here is an example courtesy of Microsoft:

Microsoft Bing

Bing has expanded to 100 million+ daily active users, according to the company, with one third of them utilizing the AI chat feature every day. Since February and the roll-out of its AI-driven search, daily downloads of the Bing mobile app have quadrupled. Microsoft recently moved its AI-chat product from limited preview to open preview (thus eliminating the waitlist for trial). This should expand the product’s user base.

Microsoft also noted that:

  • The advertising products within Microsoft’s AI chat will function based on the same auction principles as Bing search auctions, indicating that advertisers may not necessarily experience an increase in cost per click.
  • Advertisers have told Microsoft they favor visually engaging, immersive advertising experiences, increased automation for real-time ad placement optimization, and formats that support shoppable experiences, such as visual comparison designs or shop-the-look formats. In fact, Microsoft intends to make chat more visually appealing.
  • With the updated Bing, users request more product information within a shorter duration compared to conventional search. This implies that the AI-driven tool could offer advertisers more insights about users and expedite their transformation into buyers.

These developments are intriguing. We recommend that advertisers be open to the way conversational AI is evolving. At the same time, advertisers:

  • Need to challenge Microsoft on issues such as accuracy of conversational AI and bias. It’s essential that users trust conversational AI in order for these tools to be adopted.
  • Should have control over ad placements and whether they choose to show ads in the chat. How can an advertiser judge success of an ad placement when it’s unclear whether an ad shows up in chat?
  • Deserve visibility into how the ad performs specifically when showed in the chat. Google (and Bing) have been reducing advertisers’ visibility into search queries, placements, and ad performance in general.

Contact True Interactive

At True Interactive, we advocate on behalf of our clients. We are monitoring these developments closely and assessing how to incorporate conversational AI. Contact us to learn how we can help you succeed in all forms of digital advertising.

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Google Accelerates AI-Driven Search

Google Accelerates AI-Driven Search

by Mark Smith Google

The New York Times reported recently that Google is accelerating its efforts to rethink search with AI. For example, Google is using AI to better understand user intent, refine search queries, and deliver highly relevant results. And as we have blogged, Google continues to incorporate conversational AI into search via the Bard tool. This heightened level of personalization in search results and the incorporation of conversational AI will challenge businesses to, in turn, create more conversational and personal content – both paid and organic.

According to the New York Times, the new search experience “would learn what users want to know based on what they’re searching when they begin using it. And it would offer lists of preselected options for objects to buy, information to research, and more. It would also be more conversational — a bit like chatting with a helpful person.”

In addition, reinventing search “would keep ads in the mix of search results. Search queries that could lead to a financial transaction, such as buying shoes or booking a flight, for example, would still feature ads on their results pages.”

This is significant. Some technology/business watchers have speculated that conversational AI is a threat to Google Search. That’s because conversational AI responds to queries with a single answer that synthesizes information, which could upend how Google Search provides answers with links to information.

Currently Bard does not feature ads in its user interface, and ads generated $225 billion for Google in 2022. But Bard could incorporate ads – for instance, by providing links for more information along with ads; sponsored chatbot replies; and other ad interfaces that I am sure Google is dreaming up.

Simply put, Google is not going to toss out $225 billion in revenue.

Moreover, the AI-driven search engine prioritizes quality over quantity, encouraging businesses to invest in better content and optimize their websites for user experience. This shift will lead to a more competitive market where only the most relevant and high-quality content will thrive, pushing businesses to continuously innovate and adapt their online presence.

Google is trying to protect its core advertising business by making search more conversational and personal with AI. Businesses need to be ready. To be visible in Google’s world, enterprises will need to take content personalization to another level. For example, websites and Google Business Profiles will need AI to change their content rapidly and continuously based on dynamic search behavior just to keep up with AI-powered search. And say goodbye to boring chat interfaces. Chat is entering a new realm of personal, human-sounding user interfaces as AI takes hold.

Google has been changing search with AI for some time, but the rise of OpenAI’s ChatGPT conversational AI tool has accelerated those efforts. According to the New York Times, the AI push kicked into high gear when Samsung said it was considering replacing Google with Microsoft’s Bing as the default search engine on its devices. Switching to Bing could cost Google an estimated $3 billion in annual revenue if Samsung were to switch.

Alongside an overhaul, Google is also working on a number of fascinating side projects. As reported,

Other product ideas are in various stages of development. A tool called GIFI would use A.I. to generate images in Google Image results. Another tool, Tivoli Tutor, would teach users a new language through open-ended A.I. text conversations.

Yet another product, Searchalong, would let users ask a chatbot questions while surfing the web through Google’s Chrome browser. People might ask the chatbot for activities near an Airbnb rental, for example, and the A.I. would scan the page and the rest of the internet for a response.

At True Interactive, we advocate for our clients as we navigate the rapidly evolving world of advertising and content creation online. Follow our blog for more insight!

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Is Search Ready for Conversational AI?

Is Search Ready for Conversational AI?

by Mark Smith Uncategorized

The brave new world of AI-powered search has hit a speed bump.

During the week of February 6, both Google and Microsoft announced they were developing new search capabilities that incorporate conversational AI, or chatbots that answer searchers’ queries with detailed, informative answers. This interface would provide an alternative to the search engines interface we are familiar with today, in which users need to click on to web links and read short snippets of content to find answers to their queries.

Microsoft said that its Bing search engine was using the same AI technology that powers the wildly popular ChatGPT chatbot created by OpenAI. (Microsoft has a multi-billion dollar investment in OpenAI.) Google said it was about to unveil Bard, a chatbot with similar AI-fueled capabilities. Bard was based on AI developed by Google for quite some time.

Both these Big Tech companies were responding to OpenAI releasing ChatGPT for public use on November 30, 2022. Since that date, ChatGPT had become the fastest-growing app in history.

Google didn’t outright release Bard – the company demo’d the product that week and said an independent party of reviewers was vetting the product before its ultimate public release. Microsoft started to make Bing’s chat interface available in limited preview mode.

At first, both companies received generally favorable attention for showing how rapidly two Big Tech companies could bring to market a new way to search. But then the problems began:

Definitely not a good look for conversational AI!

By February 16, things had gotten so bad that The Atlantic magazine was declaring “AI search is a disaster.”

In response, Microsoft said that these types of incidents are to be expected. Microsoft said, “The only way to improve a product like this, where the user experience is so much different than anything anyone has seen before, is to have people like you using the product and doing exactly what you all are doing. Your feedback about what you’re finding valuable and what you aren’t, and what your preferences are for how the product should behave, are so critical at this nascent stage of development.”

Microsoft also announced that it will begin limiting the number of conversations allowed per user with Bing’s new chatbot feature.

Meanwhile, Google has asked employees to improve Bard by rewriting answers for topics that employees know well – a human-in-the-loop approach in which people stay involved as supervisors of the development of AI products as well as the editing of AI-generated content.

So, what now?

Well, nothing really changes for businesses at the moment. Google has not rolled out Bard. Bing is still in preview mode. Clearly, there is work to be done. The bad press suffered by Google and Microsoft simply underscores how rapidly these companies are moving. From the standpoint of building public trust, it sure looks like they would have been better off taking more time before starting to take these products closer to market.

Conversational AI is coming to search. These products did not drop out of the sky. Sooner or later, this interface was coming. It happened too soon for Google and Microsoft to escape some reputational damage. But the big picture is that the industry is more aware now of how the search experience is evolving, warts and all.

As we’ve recommended in previous posts, we suggest that businesses watch the developments closely and experiment with conversational AI (as everyone is doing with ChatGPT right now). It is important to become familiar with the ways these tools function, including the way ChatGPT can generate content (known as generative AI). This is no time to ignore the phenomenon.

At True Interactive, we are staying in close contact with Google and Microsoft and will report developments as we learn about them.

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To succeed with online advertising, contact True Interactive. Read about some of our client work here.

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Google and Microsoft Go All-In with AI-Powered Search

Google and Microsoft Go All-In with AI-Powered Search

by Mark Smith Bing Google Microsoft

On our blog, we speculated that Google would launch its own conversational AI assistant for search as a response to the popularity of ChatGPT. Well, within hours, we had our answer, and then some: not only did Google launch a new conversational AI tool for search — so did Microsoft.

What Google Announced

On February 6, Sundar Pichai, CEO of Google and its parent company Alphabet, announced the launch of Bard, which he characterized as an experimental conversational AI service. Importantly, though, Pichai was careful to qualify how Google is moving forward. Instead of dropping the tool publicly as OpenAI did, Google is making Bard available to a team of “trusted testers” before making the tool publicly available “in coming weeks.”

This is a big difference in approach from OpenAI. Essentially Pichai was signaling, “We’re Google. We’re not going to risk our brand’s reputation by rushing something to the market until it’s ready.” By contrast, OpenAI made it clear that the company was going to crowdsource feedback from the public and make ChatGPT better – the “get to the market fast with an imperfect solution and make it better” approach that typifies Silicon Valley start-ups.

Google left start-up mode a long, long time ago.

According to Search Engine Land, the “trusted testers” vetting Bard are a demographically and geographically diverse group of people external to Google — an important consideration clearly designed to mitigate against bias – and bias is a problem that has vexed ChatGPT.

Bard is going to function as ChatGPT does now: synthesizing information to provide more complete, contextual responses to queries the way voice search has always promised to do. In Pichai’s words:

Bard can be an outlet for creativity, and a launchpad for curiosity, helping you to explain new discoveries from NASA’s James Webb Space Telescope to a 9-year-old, or learn more about the best strikers in football right now, and then get drills to build your skills . . . When people think of Google, they often think of turning to us for quick factual answers, like “how many keys does a piano have?” But increasingly, people are turning to Google for deeper insights and understanding — like, “is the piano or guitar easier to learn, and how much practice does each need?” Learning about a topic like this can take a lot of effort to figure out what you really need to know, and people often want to explore a diverse range of opinions or perspective.

And, he added that Bard will be incorporated into Google Search soon. Here’s a screen shot of how the interface might look, courtesy of Google:

This is quite an announcement, to be sure. As we blogged, it was known that Google had been developing conversational AI technology for quite some time – but the company was not ready to take it public. However, as a result, OpenAI was enjoying all the glory and credit for ChatGPT’s remarkable conversational abilities. On top of that, Microsoft invested billions of dollars into OpenAI and was reportedly incorporating ChatGPT into Bing Search.

Microsoft Drops an AI Bomb

And, speaking of Microsoft: on February 7, the company confirmed that indeed conversational AI was coming to Bing Search — not based on ChatGPT exactly, but a more powerful form of the tool. Microsoft shared a new version Bing, powered by an upgraded version of the same AI technology that underpins chatbot ChatGPT. The company is launching the product alongside an upgraded version of its Edge browser. This means that that the two will provide a new experience for browsing the web and finding information online.

The “new Bing” (in Microsoft’s words) offers a chat function, where users can ask questions and receive answers from the latest version AI language model built by OpenAI. Users can also create itineraries for trips. So, for example, you can ask it to “Plan a five-day trip to Mexico.” It’s available in preview mode at Bing.com.

Following the announcement, Yusuf Mehdi, Microsoft Corporate Vice President & Consumer Chief Marketing Officer, shared more detail on the Microsoft blog. Among other things, he elaborated on how Bing’s chat functionality can help with ideation, whether writing content or planning something:

There are times when you need more than an answer – you need inspiration. The new Bing can generate the content to help you. It can help you write an email, create a 5-day itinerary for a dream vacation to Hawaii, with links to book your travel and accommodations, prep for a job interview or create a quiz for trivia night. The new Bing also cites all its sources, so you’re able to see links to the web content it references.

Here is a depiction of the experience from the post:

He also elaborated on how the Edge browser is being improved with AI, via chat and compose. With the Edge Sidebar, you can ask for a summary of a lengthy financial report to get the key takeaways – and then use the chat function to ask for a comparison to a competing company’s financials and automatically put it in a table. You can also ask Edge to help you compose content, such as a LinkedIn post, by giving it a few prompts to get you started. After that, you can ask it to help you update the tone, format and length of the post. Edge can understand the web page you’re on and adapts accordingly.

As we learn more about Microsoft’s announcement, we’ll share more.

Many questions remain, such as:

  • Whether a conversational AI will actually improve the search experience given nagging problems with providing wrong answers and biased information. As The Verge noted, “AI language systems like ChatGPT have a well-documented propensity for presenting false information as fact.”
  • How Google and Microsoft will incorporate conversational AI into Search without harming their core advertising business. As noted, conversational AI tools flourish by giving searchers concise responses instead of links to other sites. Google’s ad model depends on people staying engaged on Google Search clicking on links. Microsoft’s ad business, though nowhere near the size of Google’s, also depends on clicks and engagement.

For now, we suggest that businesses watch the developments closely and experiment with conversational AI. No doubt Google and Microsoft will provide more context on how the interplay with their ads will work. At True Interactive, we are staying in close contact with Google and Microsoft and will report developments as we learn about them.

Don’t change your ad strategy. We’re in early days.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.