Analyzing the Impact of AI on SEO and Search Advertising

She says, “Brands can expect more targeted ads closer to the point of sale as generative artificial intelligence (GAI) continues to roll out at Google and Microsoft, according to insights from Insider Intelligence.Evelyn Mitchell, an analyst for Insider Intelligence, wrote in a post that ads within chat answers are prominent, and fewer high-impact placements could cause ad prices to rise.

“Despite being labeled as sponsored, these ads may also get confused for chatbot responses by users,” Mitchell wrote. “That could be good for brand marketers, whose advertisements will now look more organic. But it also clutters the search experience, and may lead to users hesitating to click any links.”

And as of today, she says advertisers on Google can’t opt out of showing ads within the search generative experience (SGE).”