Ads in AI Search: Can it work?
Several weeks ago Bing unveiled the first Ads in AI - where will this go?
Ads in Bing AI: The first pass isn’t there yet
One of the big questions about AI/LLM driven search, has been “Will advertising model still work?” It’s important to remember that Google faced these same questions at the beginning and managed to overcome skepticism. Here’s a 1999 article to give perspective on that debate: Can Google’s Search Engine find Profits?
I believe it’s possible that ads in AI search it can work - but the early Bing examples aren’t there yet. This tweet from 3/29 from @debarghya_das showed and example of Bing AI Search ads.
I don’t believe ads in this form will be sustainable.
For ads in AI to be sustainable, three key constraints must be met:
User Motivation: There must be motivation for users to click ads in AI
Advertiser Motivation: There must be motivation for advertisers to place ads in AI
Trust: Ads must be presented in a way that maintains trust in the AI response
I don’t think this current iteration satisfies any of these constraints.
User Motivation: It’s unclear why a user would want to click any of the links for more information, the question has been answered and there is no context given on the learn more links.
Advertiser Motivation: Presumably, this is factual information that the AI would return anyway. So the advertisers here would be the companies in the “Learn More” section. If there isn’t sufficient reason for a user to click those, the motivation for the advertiser will not be there.
Trust: For ads in AI search to work, the user must not doubt that the response is biased by the ads. By labeling the facts within the response as “Ads” rather than the “Learn More” it places doubt that these are correct or the best answer.
A prediction: Search will be re-imagined
Web Search is so ingrained in our culture that it’s hard to imagine it being replaced, but let’s revisit the fundamentals on why web search exists.
Websites are the primary point of monetizable activity on the internet
There are many websites and consumers need a method for finding the right one
But what if number one is no longer true. AI Agents present the opportunity to bypass the website as the primary execution point for high value activities. What if instead you had options like this where the options were determined by AI and sponsorship:
In options 1 and 2 an AI agent would directly reach out to dealers via API or email on your behalf, bypassing the need to visit the website.
Option 3 would generate another AI informational response.
As AI agents are more able to handle requests directly - especially for areas of purchase intent (especially for trusted brands), less activity needs to be routed through owned websites. I don’t think this transition will happen overnight, there will likely be a first phase (that we are already seeing) where websites are awkwardly forced into an AI chat construct.
Generative Post produced by Gen AI Partners
