In a dramatic break with the decades-old traditional search experience, Google announced it will provide AI-based summaries on search results pages at yesterday’s annual Google I/O conference. The new feature, called Search Generative Experience (SGE), is supposed to roll out in the U.S. this week and in other countries later this year.
The Search Generative Experience is a new approach to presenting search results. Instead of just displaying a list of links, SGE adds concise summaries generated from authoritative sources. These summaries aim to answer users’ queries directly, reducing the need for them to click through multiple pages of search results or on ads. Imagine getting the information you need without leaving the search page — a game-changer for user experience.
SGE will have wide-ranging implications for advertisers, SEO companies, publishers, and Google itself.
Advertisers’ Most Important Performance Channel Gets Blunted: Advertisers heavily rely on Google Search for direct response advertising. With SGE, three things will happen. One, users may find answers without clicking through several search results pages, leading to reduced opportunities for ad placements for performance marketers. Reduced advertising real estate also means more competition for top ad placements and higher ad prices. Last but not least, search summaries also may satisfy users information needs without clicking on ads.
Revenue Concerns For Google: This shift challenges Google’s traditional search ad business model. Fewer page views and fewer click-throughs mean fewer opportunities for ads to generate revenue. Google will likely introduce new ad formats within SGE search summaries. But it is unclear if ads within SGE summaries can make up for potential losses in traditional search ad revenue, even at higher ad rates.
SEO Companies Must Adapt or Perish: SGE poses significant challenges for Search Engine Optimization (SEO) companies. Traditional SEO strategies focused on ranking high in search results. With SGE, the emphasis shifts to creating high-quality, concise content that can be summarized effectively. SEO experts must adapt their optimization techniques.
Publishers Must Find New Ways To Monetize Content: Because users who are satisfied with SGE summaries won’t click through to the original content, publishers may see reduced traffic to their websites. That translates into reduced inventory and decreased ad revenue.
To compete, publishers must focus on producing high-quality, authoritative content. Mediocre content won’t cut it when users can get concise answers upfront.
Publishers must also find alternative ways to maintain visibility. Publishers need innovative monetization strategies — distribution deals, sponsorships, and subscription models — to offset traffic losses.
Google’s Dilemma: Google’s decision to introduce SGE is bold but necessary. If they don’t cannibalize their own search revenue, competitors like OpenX and Microsoft will.
SGE represents a fundamental shift—one that challenges the status quo and pushes Google to redefine its role in the digital landscape. As the Gemini Era unfolds, SGE is a sign of things to come. Buckle up; the search experience is evolving!
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