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ChatGPT can now answer search queries, challenging Google’s hold on the sector.
It’s been a wild ride for OpenAI’s generative AI technology over the last 18 months, with both highs – YouGov research that showed around three-quarters of Millennials and Gen X would purchase a product based on the chatbot’s recommendations, plus the introduction of voice and image capabilities over a year ago – and lows, having to pay publishers to use their content and backlash to a deal with Apple.
Its latest move sees the chatbot able to "retrieve and deliver information from across the internet in real time, including news, stock prices and sports scores," according to the New York Times.
Looking at how it compares to competitors – not just the Google, but also Bing, Yahoo, DuckDuckGo and others - Kinesso’s national head of AI and Analytics, Kellyn Coetzee, said ChatGPT Search's ability to access recent, paywalled content sets it apart from traditional search engines.
“It's like having a research assistant with an all-access pass to top publications,” she said.
“This could revolutionise how we understand and respond to market trends, giving our clients a significant advantage in the fast-paced Australian market.”
Spark Foundry Australia’s national head of biddable media, Greg Cattelain, said that while it’s still early days to be able to compare like for like, what the Publicis-owned agency has seen in the last week is that the technology is doing a good job of synthesising information and providing the sources of its summaries for users.
“It also includes visuals, interactive charts and maps, which is a good start,” he told AdNews.
“Currently, however, it lacks many features that make traditional search engines unique, such as shopping and travel booking. We'll just need to wait and see how SearchGPT evolves over time.”
Orange Line’s head of SEO, Veronika Warren, said that for informational or educational queries, ChatGPT Search excels due to the conversational nature of the responses, ease of use and interactivity, and the ability to seamlessly deep dive into a particular area of information.
“Users may find it more convenient to use than traditional search results that require them to manage multiple tabs, read multiple sources until they find what they’re after and spend time deciphering it,” she said.
“For transactional queries though, there are limitations. For example, when searching for a fabric sofa, as part of the experience, users expect rich visual results and immediate product comparisons. The ability to incorporate visual elements is not refined at this stage in ChatGPT Search, making it more likely for users to stick to platforms like Google for queries that allow them to find products in as little moves as possible.”
Warren said it’s also important to keep in mind that YouTube, TikTok and Instagram are all search engines in themselves too.
“Until ChatGPT Search develops robust visual capabilities that align with specific user search behaviors, its competitive advantage will remain largely confined to text-based information exchange and knowledge discovery,” she said.
“At the end of the day, the ability to compete with established search engines will at least partially depend on the number of moves it requires the user to make to complete their journey.”
Strength in conversational capabilities, but limits in functionality
Available now to those who use ChatGPT Plus - the paid version of the product - along with its ChatGPT Team product designed for businesses, Open AI will be rolling out the search functionality for ChatGPT Enterprise and ChatGPT Edu users in the next few weeks.
Free users of the platform will receive access “over the coming months”, according to a post from the company.
Cattelain said that one of the strengths of ChatGPT Search includes delivering information directly to users, eliminating the need to click through multiple links and navigate the clutter typical of traditional search engines.
“Weaknesses lie in the fact that it is currently still limited in functionality, as well as not integrated into our current search behaviour; however, this may change over time,” he said.
Orange Line’s Warren said that outside of potential concerns of accuracy and bias, the platform’s strengths lie in its conversational capabilities, particularly in text-based interactions and knowledge transfer.
“Its ability to maintain context and deliver nuanced responses sets it apart from traditional search engines,” she told AdNews.
“But its weaknesses extend beyond just visual constraints. For content publishers, there may be potential revenue challenges as users may remain within ChatGPT's environment rather than visiting individual websites directly.
“The platform's reliance on Bing's search index and news publisher partnerships also introduces potential biases that merit consideration.”
Coetzee agreed that the strength of ChatGPT Search lies in its access to premium, up-to-date content and its conversational interface, but said that questions about copyright and fair use still abound.
“The potential for AI hallucinations, while diminishing, also remains a concern,” she said.
L to R: Kellyn Coetzee, Greg Cattelain, Veronika Warren and Nicholas Chin.
Not likely to kill off Google anytime soon
Although it’s too soon to tell how many people have used its search functionality since launch, Open AI announced in August that the overall ChatGPT platform boasted more than 200 million weekly active users, according to a Reuters report.
Similarly, the number of people who use Google to search every day is unknown, but one source estimates that there’s over 8.3 billion searches performed every day.
The US Department of Justice, in its ruling earlier in the year declaring Google as a monopolist, said that in the United States at least, nearly 90% of all search queries went through Google, with that number being even higher on mobile devices.
Google started rolling out its own AI search product in Australia at the start of November, using generative AI to create a snapshot about a topic or question, along with key information and links to dig deeper.
As a result of this domination, media agencies AdNews spoke to found it unlikely that ChatGPT Search would have any major effect on Google.
OMD Australia’s national head of performance, Nicholas Chin, said that for now, Google, SearchGPT and other AI search products like Perplexity will have their own swim lanes and cater to the evolving search needs of different consumers.
“SearchGPT, for example, has been built to be a concise, authoritative and real-time search query console - almost like a personal helper that can give you the updated answers you need right now, with sources to match,” he said.
“Google AI Overviews, on the other hand, is seamlessly integrated into the everyday Google search experience that we're all used to and integrates better with other Google services, like Maps or Shopping.
“Multi-modal search and the evolving search experience from the Google search bar now also means there are more search experiences available for both the consumer and technology vendors. Take social search in the creator economy, or multi-modal search using video, audio and images as green pastures for all to have their space to play.”
Chin said that outside of the search experience, the future success of search engines will continue to depend on integration and partnerships with other services.
“OpenAI has been clear that they will eventually integrate SearchGPT with ChatGPT in the future, and with ChatGPT being the backup data source for Apple Intelligence in new Apple devices, this trojan horse strategy could be the key to widespread adoption of the SearchGPT platform,” he told AdNews.
“On the flip side, data privacy is still a thorn in the side for the major tech platforms. To use SearchGPT to its greatest potential, you are required to pass over more of your data to yet another platform.
“OpenAI has had a bumpy ride on the privacy front, so if Google AI Overviews is an equivalent search engine, will consumers want to hand over their data to another provider and will this hurt OpenAI's progress?”
Warren agreed that Google is an established habit that is driving billions of dollars of revenue to the business, and that while ChatGPT search may take away some market share, they will need to find ways to bypass the years of experience Google has had to develop their product.
“For ChatGPT to truly compete, it will need to not only surpass usability, but also bring something unique and compelling that addresses unmet needs or provides a distinct value, redefining what users expect from search itself,” she said.
“Each platform serves distinct user needs – Google for comprehensive results, Pinterest for visual discovery, YouTube for video content, and now ChatGPT Search for conversational knowledge exploration. This specialisation suggests we're moving toward a more fragmented search landscape.”
Kinesso’s Coetzee said that in Australia alone, ChatGPT is estimated to have 3 to 4 million monthly users - representing 1.5% to 2% of its global user base – with this rapid growth suggesting a shifting digital landscape.
“However, Google's ubiquity and integration with other services still give it a significant edge,” she said.
“At Kinesso, we're preparing for a future where both platforms coexist, each serving distinct user needs in the Australian digital ecosystem. The continued Google monopoly will likely hinge on Google's ability to adapt to this AI-driven search paradigm and who is first to release AGI and all its implications.”
The capacity for advertisers and monetisation
As OpenAI is a private company, numbers on its revenue to date aren’t widely available, although the New York Times reported that OpenAI’s monthly revenue hit $300 million in August, up 1,700% since the beginning of 2023, and the company expects about $3.7 billion in annual sales in 2024.
OpenAI also estimated that its revenue will balloon to $11.6 billion next year.
For Google, meanwhile, its most recent results showed that overall advertising revenue hit $64.6 billion, while search advertising revenue was up 13.8% to $48.5 billion.
Looking at the capacity to monetise ChatGPT’s search product, Cattelain said that traditional ways include sponsored links of websites that are the most relevant to ‘learn more’, or product visuals that can best answer the search query.
“New ways could include sponsored citations that are relevant to the query, which would help build brand authority and consideration,” he said.
“There could also be product visualisation based on users’ data, for example rendering how clothes appear directly on a person.”
OMD’s Chin said that shopping and ecommerce brands are the clear winners in the AI search battle, with Google AI Overviews already integrating ads into its AI powered search results.
“But as things change, advertisers will need to evolve their promotional tactics and thinking when promoting products through future search,” he said.
“Things like situation context for content listings, usage examples or authoritative reviews are the new tools for search practitioners and will involve closer ways of working with product and go-to-market teams.”
Warren said that the conversation-first nature of ChatGPT Search demands a fresh approach to monetization, and although traditional advertising models may not translate effectively, there are several avenues the platform could explore.
“Things like native sponsored content integrated naturally into conversations, or enhanced analytics and insights for advertisers could see users paying for a more premium subscription,” she told AdNews.
“But success will really depend on maintaining the platform's inherent value while introducing revenue-generating features that enhance rather than diminish the user experience. The future of ChatGPT Search hinges on its ability to balance innovation with practicality, pushing boundaries while meeting established user expectations.”
Coetzee said the monetisation potential for ChatGPT Search has expanded significantly with its ability to access paywalled content, giving it a leg up on traditional search.
“We could see a model where premium publications partner with OpenAI, receiving compensation for their content being used in responses,” she said.
“For advertisers, this opens up new avenues for reaching high-value audiences who consume premium content. We know Perplexity is working on a CPM buying model which is a bit different to how traditional search buyers have historically dabbled in search bidding.
“While we are yet to see what Search GPT ad model will look like, we're exploring how this could lead to more sophisticated, content-integrated advertising strategies.”
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