ChatGPT and Generative AI in Search

The Biggest Digital Ad Format Is Ripe for Revolution

Report by Evelyn Mitchell  | May 15, 2023
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Table of Contents
Report Snapshot
Google is still dominant, but Microsoft has snatched a first-mover advantage with AI-assisted search.
More users are trying Bing thanks to its GPT-4 integration, but they haven’t made a permanent switch.
It’s yet unclear how the market will support search ads in a conversational interface.
AI-enabled search will likely reduce publisher site traffic, with major consequences for programmatic.
Despite the hype, consumers are dubious about AI-assisted search.
What’s the best course of action for search advertisers?
Insider Intelligence Interviews
Sources
Media Gallery
About This Report
Search is positioned to be generative AI’s first major consumer-facing playground. This is unexplored territory, and advertisers are bracing for big changes.
Topics
Search
United States
Table of Contents
Report Snapshot
Google is still dominant, but Microsoft has snatched a first-mover advantage with AI-assisted search.
More users are trying Bing thanks to its GPT-4 integration, but they haven’t made a permanent switch.
It’s yet unclear how the market will support search ads in a conversational interface.
AI-enabled search will likely reduce publisher site traffic, with major consequences for programmatic.
Despite the hype, consumers are dubious about AI-assisted search.
What’s the best course of action for search advertisers?
Insider Intelligence Interviews
Sources
Media Gallery

Report Snapshot

Microsoft and Google are racing to develop the best AI-assisted search experience, leaving advertisers on the precipice of major disruption in the largest and most mature digital advertising channel. But the only certainty is that disruption is coming, and quickly. Everything else—even the fate of the open web—is up in the air.

Key Question: How might generative AI reshape the search advertising market?

How Much Do US Adults Trust Search Results Generated by AI? (% of respondents, Feb 2023)
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KEY STAT: Just over a quarter of US adults trust AI-generated search results, per a February 2023 Ipsos poll. Microsoft and Google need to tread lightly—or risk running afoul of consumers and turning off advertisers.

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    Table of Contents

    1. Report Snapshot
    2. Google is still dominant, but Microsoft has snatched a first-mover advantage with AI-assisted search.
    3. More users are trying Bing thanks to its GPT-4 integration, but they haven’t made a permanent switch.
    4. It’s yet unclear how the market will support search ads in a conversational interface.
    1. AI-enabled search will likely reduce publisher site traffic, with major consequences for programmatic.
    2. Despite the hype, consumers are dubious about AI-assisted search.
    3. What’s the best course of action for search advertisers?
    4. Insider Intelligence Interviews
    1. Sources
    2. Media Gallery

    Charts in This Report

    How Much Do US Adults Trust Search Results Generated by AI? (% of respondents, Feb 2023)US Nonretail Search Advertising Market Share, by Company, 2018-2025 (% of total nonretail search ad revenues)
    US Traffic Patterns for Google, Bing, and ChatGPT3, Nov 2022-May 2023US Programmatic Digital Display Ad Publisher Revenues, 2020-2025 (billions and % change)

    Interviewed for This Report

    Michael Cohen
    Horizon Media
    Executive Vice President, Performance Media
    Interviewed April 13, 2023
    Katie Driggs
    FerebeeLane
    Director, Media
    Interviewed April 12, 2023
    Aaron Levy
    Tinuiti
    Vice President, Paid Search
    Interviewed April 10, 2023

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    authors

    Evelyn Mitchell

    Contributors

    Chris Keating
    Director, Research
    Jennifer Merritt
    Vice President, Content
    Peter Newman
    Senior Forecasting Analyst
    Tracy Tang
    Senior Researcher
    Paul Verna
    Principal Analyst