For decades, Google has been the undisputed leader in the search space, commanding the majority of global search traffic. With a wide variety of content from search ads, organic results, featured snippets, shopping results, etc., Google has built an advertising empire that businesses rely on for visibility and revenue.
However, with the rise of AI answer engines such as ChatGPT, Perplexity, Gemini, and Claude, we’re witnessing a rapid shift in search behavior. People are increasingly turning to LLMs and AI chatbots for their search and research needs, opting for a conversational and direct approach to finding information. In fact, Gartner predicts that traditional search volume will drop by over 25% by 2026 as searchers shift to answer engines to get their questions answered.
As AI models improve and integrate real-time data, we’re confident that traditional Google searches will continue to decline, leading advertisers to reconsider their marketing strategies.
Why Advertisers Should Care
Google Ads has long been a leading driver of conversions and revenue for advertisers. With search volume shifting towards AI-driven answer engines, brands must adapt their strategies to maintain visibility across emerging search platforms. If users are engaging more with AI chatbots instead of traditional search engines, advertising dollars must follow suit.
Ignoring this shift could mean losing a significant portion of the audience to competitors who successfully navigate this evolving space. Marketers must stay ahead by understanding where and how they can place their ads in AI-powered search tools.
Understanding the Main AI LLMs and Their Advertising Capabilities
With more and more AI answer engines coming out each day, it’s important to understand who the leaders in the space are and what their current/future advertising capabilities will look like. In our opinion, these are the leading chatbots that advertisers should be closely monitoring.
ChatGPT
As of now, OpenAI’s ChatGPT does not support direct advertising or have any sponsored content on the platform, but change is likely on the horizon. In an interview with the Financial Times, OpenAI CFO Sarah Friar confirmed that the company is exploring ways to integrate ads into ChatGPT. She stated that they have to be “thoughtful about when and where we implement them,” but it’s low-hanging fruit to improve the business.
OpenAI is actively hiring experts from Google and Meta to develop strategies for seamlessly embedding ads into ChatGPT while maintaining a high-quality user experience. These developments indicate that advertisers should anticipate future opportunities to engage audiences within ChatGPT through ads, similar to what we’re already seeing in Google and Meta AI platforms.
Perplexity
Unlike ChatGPT, Perplexity AI has already started experimenting with advertising. The company has confirmed that they’re testing various ad formats within their platform.
Perplexity’s approach to advertising is still evolving, but early indications suggest that they’re working on a non-intrusive model that maintains a seamless user experience. Perpexity states “Advertising material will be clearly noted as ‘sponsored,’ and answers to Sponsored Questions will still be generated by our technology, and not written or edited by the brands sponsoring the questions.”
The option to run ads within Perplexity is currently in closed beta, featuring brands like Indeed, Whole Foods Market, Universal McCann, PMG, and others. They’re predicted to move to an open beta in the future, allowing more advertisers the opportunity to test running ads on their platform.
Perplexity does not currently have a platform to run and manage ads, so this will likely be through a sign-up basis for the time being until they develop that platform.
Microsoft Copilot
Microsoft Copilot has fully integrated advertising within its platform. Ads in Copilot are automatically generated from an advertiser’s existing Microsoft Ads campaigns (which also serves Bing), meaning advertisers do not need to opt in manually. However, they also cannot opt out of serving ads within Copilot.
If you’re running search-based campaigns within Microsoft Ads, your ads are already eligible to appear in Copilot. To maximize visibility, optimizing your search campaigns for high performance will improve their chances of showing up in Copilot responses. Some items to focus on include:
- Drafting compelling and relevant ad copy
- Improving quality scores
- Bidding on long-tail conversational keywords
Claude AI
Anthropic’s Claude AI, which has a closed knowledge database, does not currently support advertising, and there is no official word on whether it will in the near future. However, given Google’s significant investment in Anthropic, it would not be surprising if ads are introduced down the line. Google, a dominant force in digital advertising, could leverage Claude to expand its advertising network as searchers leave the platform for chatbots.
Google’s AI Overviews
Google has already begun running ads within its AI Overviews. Similar to Microsoft Copilot, advertisers do not need to take any additional steps to participate. Google Ads campaigns are automatically eligible for these placements, typically below the organic content in the AI Overview.
To optimize for AI Overviews, marketers should focus on:
- Enhancing ad relevance and quality scores
- Leaning into Google Ads automation tools like broad match and PMax
- Bidding on the additional long tail, conversational keywords
- Ensuring ad copy is AI-friendly and easily digestible
Gemini
At this time, Google’s Gemini does not feature advertising. While Google executives have hinted at the potential for native ads within Gemini, they’ve emphasized the importance of maintaining a high-quality user experience.
Google CEO Sundar Pichai recently suggested to investors that native ads could be a future addition: “We always want to lead with the user experience and we do have very good ideas for native ad concepts.”
While we do not expect Gemini ads to launch in 2025, when they do arrive, they will likely be managed through Google Ads in a manner similar to AI Overviews and Copilot, where advertisers are automatically opted in to advertising on the platform.
Predictions for Optimizing Ads in AI Chatbots
As AI-powered search continues to evolve, we predict that advertising in AI chatbots will function similarly to Performance Max (PMax) campaigns — highly automated and data-driven. Here’s what advertisers can expect:
- Limited manual control: Unlike traditional Google Search ads, where advertisers bid on keywords, AI chatbot ads will likely be more automated, with less control over bidding and placements. Ad placements will also likely depend heavily on the turn of a particular conversation.
- AI-driven targeting: Ad delivery will be optimized based on user intent and engagement rather than keyword-based queries.
- Integrated ad formats: Native and contextual ad placements will be crucial to ensuring ads do not disrupt the user experience. People are turning to AI chatbots for a more personalized search experience, and many of these platforms would seek to maintain that.
Key Takeaways for Advertisers
- Monitor AI chatbot developments: Stay informed on which platforms introduce advertising and how they structure their ad formats.
- Start testing early: As new ad placements roll out, early adopters will have a competitive advantage in refining their strategies.
- Optimize for AI-driven search: Ensure your ad creatives and landing pages align with AI chatbot interactions and generative search experiences.
- Leverage automation: AI advertising will be heavily automated, so leveraging existing machine-learning-driven ad formats (like PMax) will help in transitioning smoothly.
Final Thoughts
The shift from traditional Google search to AI-powered chatbots represents a major transformation in digital marketing. While search engines are not disappearing, user behavior is evolving, and advertisers must adapt accordingly. Brands that proactively explore advertising opportunities within AI chatbots like ChatGPT, Perplexity, and Copilot will stay ahead of the curve.
As AI continues to shape the future of search, one thing is clear: marketers who embrace this change and optimize for AI-driven search will reap the benefits of early adoption.
