Long Read - OpenAI enters 'wolf's lair' with a search engine

“OpenAI has walked into the wolf's lair; an area in which Google has the most experience, funding and capability behind it.”

What makes Google Search so powerful is not just the simple query-based search function, he says, but also the periphery functions - that are now fully fledged standalone use-cases -  such as Maps, Shopping, Google My Business and the Image/Video repository.

“What we are really comparing here is how intent-based modelling, as part of a larger model, can unearth and drive relevancy to the user’s search query best."

Taylor-Bartels is yet to see the real levers that brands can pull to improve their rankings with SearchGPT, with the mission of surfacing the best and most appropriate result back to the query made - both in text and in the audience profile itself.

“A lot of, if not all of OpenAI's capabilities - which really are marvellous, lie within black-box machine-learning LLMs. How do they work? Don't ask anyone at OpenAI; even their CTO, Mira Murati, in an interview with Kara Swisher only a few weeks ago, was unable to answer how and why ChatGPT made a response, and where it collected the information from,” he says.

Knowing this, how can we be sure, in absence of transparency, whether OpenAI will favour publishers such as NewsCorp and The Atlantic in their AI search results, he questions.

“The beauty of Google's algorithm is its interpretability; allowing smaller, agile and focused brands to be able to elevate their services or opinion to the top and challenge the big players.”

While Google currently holds a significant share of search traffic, AI-powered search engines like SearchGPT and Perplexity are gaining traction and pushing Google to adopt new features and strategies, which may lead to improvements in search technology and user experience, PHD head of digital, Sydney, Paula Malysevaite says.

“Although SearchGPT might not have a significant impact on Google's market share immediately, its presence and capabilities will likely influence the evolution of search engines and drive innovation in the industry.” 

For SearchGPT, competitors include Microsoft Bing and Perplexity AI. 

“While Bing has integrated generative AI and image generator Dall-e into its search engine, it has not managed to take up a significant growth in market share, yet it still holds the second position in the search engine market. Perplexity AI, on the other hand, positions itself as an "AI-powered answer engine". Rather than delivering a list of links, it claims to provide direct answers and detailed insights," Malysevaite says.

She believes that SearchGPT will aim to provide faster, more relevant answers with clear sources, leading to a more user-friendly experience compared to traditional search engines. 

“This may lead to focus on user experience & conversational search, push for innovation in SEO, subscription-based services (monthly fee option for unlimited access which would provide an ad-free experience and more unbiased answers) and new revenue-sharing models (allowing businesses to pay to feature their content in search results, giving credit to new publishers and encouraging the creation of high-quality content that drives more traffic and revenue).”      

Malysevaite predicts there’ll be a greater focus on user experience and personalisation over the next five years.

“With collaboration with publishers and advertisers: AI search engines like SearchGPT and Perplexity are exploring new revenue-sharing models with publishers and advertisers, which could reshape the way advertising revenue is distributed in the search engine market,” she says.

“Emergence of new media roles. As AI-driven search engines become more prevalent, there will be a growing need for specialists to address ethical considerations, ensure content accuracy, and mitigate biases, leading to the creation of new roles and responsibilities within the media industry.”

Independent full-service agency Enigma is still on the waitlist for the early test group for the Open AI SearchGPT, where only 10,000 accounts globally have been granted access for.

It might not immediately rival Google's comprehensive search capabilities, but it represents a strong competitor that could carve out a significant niche by offering a different user experience focused on conversation and context, Enigma executive director of digital, data & technology Ren Frise says.

“While it is still early days, SearchGPT's ability to understand and generate human-like text could change how users interact with search engines,” he says.

“Heavy LLM chatbot users may also decide to stay in these search chat experiences for their searches in the future.”

Frise says there are several emerging competitors in the search space that are leveraging advanced AI technologies to offer innovative search experiences.

“Bing with AI Integration: Bing continues to improve its search capabilities with AI, enhancing result relevance and user experience through natural language processing and machine learning. 

“Perplexity AI: Perplexity AI has introduced ‘Perplexity Pages’, which uses advanced AI and natural language processing to provide detailed, contextually rich search results. This approach synthesises information from multiple sources, offering users a comprehensive and immersive search experience.”

The move by OpenAI to launch SearchGPT represents an array of opportunities and challenges, Frise says.

“Personalisation: Improved personalisation through conversational AI can lead to more relevant search results. Increased user engagement by providing a more interactive search experience,” he says.

“And innovation, which encourages new developments in search technology and methodologies, which is good for the whole industry."

While challenges include adoption, convincing users and brands to adopt a new search approach.

“And accuracy, ensuring the reliability of generated responses. As well as privacy, addressing privacy concerns associated with AI-driven searches," Frise says.

Over the next five years, he expects to see the rise of LLM brand management and LLMO (Large-Language-Model Optimisation). 

“Brands will increasingly focus on optimising their content and interactions for AI-driven search engines. SearchGPT and similar technologies will gradually shape user habits, leading to broader acceptance and trust,” he says.

“Traditional search engines will integrate more AI capabilities, and the search space will become more fragmented but enriched with diverse, AI-powered tools.

“Ultimately, the success of these strategies will rely on the quality of the user experience, the effectiveness of the technology in solving user problems, and the brands' ability to achieve large-scale adoption. It is still early to predict the long-term impact, but brands that adapt and implement these strategies will likely shape the future of marketing in an AI-driven world.”

SearchGPT requires a change in behaviour of how we search, Atomic 212° GM of growth operations Sascha Bonomally, told AdNews.

“Think about Ask Jeeves, when people used to search in question form and then we all learned to type in keywords. ChatGPT is useful for longer tail, question type queries, but these are more niche and won't make much of a dent. 

“Even for queries that are much quicker on SearchGPT like "What fridge would fit in my cabinet space with x dimensions" which would take much longer on Google, you still end up Googling the products that are returned. Even with links to the product pages on SearchGPT, they still need to get around the trust that is built in to having a higher Google rank.”

According to Bonomally, other formidable competitors emerging in the search space include TikTok and YouTube. 

“TikTok overtook Google in searches this year for Gen Z. This search behaviour is much more of a threat than SearchGPT.

“From an SEO perspective, any content that is optimised for the knowledge graph (where Google gives you the answer on the results page) will also be optimised to SearchGPT. From an ecommerce perspective, all the SKU information should be available in the schema so that those products can be served in response to information searches.”

The challenges, he says, are convincing anyone who wants to pivot their whole search strategy completely as a reaction.            

“Google will pick and choose the features that they see as the biggest threat (to users and revenue) and slowly add them to their functionality.”

SearchGPT will likely provide more contextual, nuanced results that go beyond the traditional keyword-based search model. Even now I find myself relying more and more on GPT-4 as a search tool over Google, Innocean director of growth & client service Carly Pelham says.

"There are pros and cons to this though - I don’t fall down as many rabbit holes using GPT-4 as it tends to give me what I need from the get-go, but on the other hand, relying solely on GPT-4, I find you don’t always get the full picture. It’s tempting to go with the first result when you’re pressed for time, but due diligence is key."

There was never a time that Pelham thought Google might have a competitor on its heels, but here we are.

"The launch of SearchGPT represents a significant shift in the search landscape. SearchGPT could introduce a new model whereby search engines not only retrieve info, but interpret, summarise and provide insights in a conversational manner," she says.

"That said, we know Google has been leading AI advancements in search for a long time, while OpenAI's development of GPT models is relatively recent."

The biggest opportunity Pelham sees is redefining user expectations in this space.

"Over the past 10 years or so, we’ve seen customer expectations redefined by trailblazing brands that have galvanised entire categories to catch up to meet the status quo. This will be no different for search. Most of the examples I can think of have meant a better outcome for the customer - convenience being the bottom line. I do wonder what avenues this opens up for SEO and content optimisation and what it means for ranking."

Pelham predicts AI-driven search engines like SearchGPT will become more mainstream, which could mean a more fragmented search market in which users choose platforms based on specific needs or preferences.

"Traditional search engines will likely incorporate more AI features to stay competitive, blurring the lines between search and conversational AI. We may also see a shift in how digital content is created and optimised, with a greater emphasis on AI-friendly formats. The success of these technologies will depend on how well they address the challenges of accuracy, privacy, and user trust," she says.

Independent agency Next&Co co-founder Nick Grinberg also says the long term nature of whether SearchGPT will provide competition to the likes of Google will really depend on the quality of the experience. 

“With a remarkable 93.95% market share, Google is well and truly the dominant player in search in Australia. Brands should watch out for category specific search engines that are relevant to their products/content such as YouTube, Amazon etc.”

SearchGPT could change user search behaviour and expectations - in the long-run, Grinberg says.

“It presents an opportunity for brands to optimise their content for more ‘conversational’ search. SearchGPT’s entry into the market should also force Google to innovate.

“However human beings are generally resistant to change and our habits are deeply ingrained with using Google. This may affect the timely adoption of SearchGPT.”

Grinberg thinks search will continue to get more and more personalised based on the user and AI and machine learning will have a big hand to play in this. 

“Voice search will become more important as users learn to chat more conversationally with search engines. In addition, visual search will also rise in prominence with technology such as Google Lens becoming more adopted by consumers.”

In light of Google's recent antitrust lawsuit loss, the timing of SearchGPT’s launch couldn't be more interesting, The Media store performance director James Nash says.

“The outcome of this case could have significant ramifications, challenging tech giants to rethink their strategies. We have already seen Reddit partner exclusively with Google Search. It will be interesting to see if other search engines forge other meaningful partnerships for the future, such as Bing and OpenAI."

Nash says SearchGPT opens up exciting opportunities for advertisers and marketers.

“It’s set to improve ad targeting with greater precision by offering a deeper understanding of user intent and context and it paves the way for innovative ad formats, such as conversational ads, that align with the interactive nature of the platform. For brands, this represents a unique opportunity to engage customers more naturally and build stronger connections through more personalised ad experiences.”

To achieve success though, Nash says SearchGPT must carve out a distinctive niche or unique feature that sets it apart from established search engines.

“The development and expansion of LLMs involve substantial energy consumption, raising environmental concerns such as carbon emissions, electronic waste, resource depletion, and heat generation. The media industry will need to adopt more sustainable practices in media buying and content creation to mitigate these impacts. Failure to do so may lead to penalties and influence advertisers' decisions about appearing on search engines that use AI, potentially affecting their reputation."

Nash predicts that as this technology advances, the quest for enhanced productivity might come at a cost, potentially affecting the quality and accuracy of responses. 

“The pressing question is: How will SearchGPT be monetised? Will they implement a bidding system for ad space? And if so, will this compromise the authenticity that users value?

“Privacy-focused search engines will continue to grow as data privacy becomes increasingly important. Overall, the market will see increased competition, innovation, and opportunities for advertisers to reach audiences in more meaningful ways.”

The Pistols head of strategy Emilia Chambers, says both consumers and marketers have been waiting for a strong alternative to Google in the search space, and it’s not just to watch Google fall like some people think, but to have options. 

“Right now, the majority of searches happen across Google and that is simply due to there not really being anything better. TikTok is chipping away at the younger generations and the rise of social search is a reality, but outside of social, there is no other platform that has potential to take significant traffic away from Google,” she says.

Outside of creating an alternative to Google for both consumers and marketers, if OpenAI can crack the AI search challenge and produce a high quality, trusted product then this will open the door for other companies to replicate, and even improve on, their own search platform solution, Chambers says.

“The key to this is OpenAI’s use of Retrieval Augmented Reality (RAG) which should result in more accurate results as the model can retrieve relevant information to better support its output. If this works then it’s game on.”

Credibility and reliability are the two biggest challenges that lay ahead for OpenAI and AI search in general, she says.

“It's where many others have fallen down, with AI platforms delivering answers that are incorrect or inappropriate as the models were filling gaps in knowledge with incorrect or completely made up information. 

“Even if SearchGPT manages to create a highly accurate search solution I’m expecting that there will need to be a significant amount of work done to convince consumers and marketers that the responses can be trusted and that there is minimal risk in using, and eventually advertising, across the platform.” 

Chambers is optimistic that SearchGPT is going to be the turning point for search. She’s holding reservations though on whether it alone will fundamentally change the space but either way, it’s going to open up space for other AI companies to see how they can compete in the search space, whether that’s what to do or what not to do, depending on the success of SearchGPT.

“I’m expecting more opportunities, alternative solutions to Google and different ways for users to search that align with their wants and needs. It’s going to be a busy space to navigate but after so long really only having one solution in Google, it’s going to be a nice change.”

Half Dome client and digital partner Rhett Mitchelhill says a notable threat to Google's supremacy is emerging from social media platforms, particularly among younger generations. 

Recent data indicates that 31% of Gen Z and 28% of Millennials now prefer to initiate their search and shopping journeys on social platforms like Instagram and TikTok.

“This trend is driven by the personalised and timely nature of user-generated content on these platforms, which resonates with the demand for short, engaging, and authentic content,” Mitchelhill says.

“Despite this shift, the user journey often starts on social media but culminates in a purchase on platforms like Google or Amazon. While Amazon captures a significant portion of the shopping search market in the US, this trend hasn't fully permeated the Australian market.”

While it does not aim to replicate Google's experience exactly, SearchGPT’s new experience and pathway to knowledge is the first credible threat since the social media wave, he says.

“But it will face challenges along the way including convincing users to transition from established platforms like Google and social media giants to SearchGPT is a daunting task. The current platforms offer low barriers to entry for both consumers and brands and provide proven and measurable returns, making them attractive to advertisers. For SearchGPT to succeed, it simply must offer compelling advantages that draw both users and brands across simultaneously.”

As AI-driven solutions become more prevalent in advertising, Mitchelhill says, there's growing concern over the lack of transparency. 

“Tools like Performance Max, Broad Match, and Advantage Plus aim to optimise user experiences and brand outcomes but often do so at the cost of reduced control and visibility for advertisers. This shift can dilute the ‘performance craft’ that many professionals find engaging, potentially impacting the perceived value of these solutions to professionals.

“Looking ahead, if any sector is poised to divert attention and advertising dollars from Google, it will likely be the social media giants.”

PHD national head of digital Gemma Dawkins says the way consumers search for information is changing. 

“We’ve seen increased discovery on social and retail platforms, and with this, improved search capability on each platform. Amazon Rufus, an AI-powered shopping assistant, is just one example of investments made by tech companies to address the changing needs of consumers, moving from keyword-based search to conversational search,” she says.

Crucially, SearchGPT offers an ad-free search experience, reducing distraction and enhancing the overall user experience, Dawkins says.

“If we look at what this means for traditional search engines, Gartner predicts traditional search volume will drop 25% by 2026. We will continue to see an increased focus in conversational search capability being developed by existing search engines and through new competitors, as well as social platforms, who have become the first port of call for Gen Z when in discovery mode.

“In terms of what this means for brands, Gartner predicts that brand’s organic search traffic will have decreased 50% or more by 2028. It’s therefore crucial that brands think about their search strategy holistically and across all discovery environments, taking a user-centric approach. This may mean a re-shaping of existing keyword and content strategies, to optimise for natural language queries.” 

For independent media agency Magic’s head of SEO, Tommy Glover, it’s hard to imagine any force strong enough to disturb Google's dominance.

“However with ChatGPT being the fastest growing platform in history we might just have the first worthy opponent. The ripple-effect of ChatGPT’s birth was felt across the industry and marked one of the most substantial developments the search industry has seen, and it’s likely SearchGPT will have a similar impact. 

“At some point in time I believe it could  rival the capabilities of Google whose innovations have slowed considerably in recent years, however with any new technology it needs to be developed further before it steals market share.”

As for competitors, Glover thinks that Brave Search might be one to watch for the future.

“Initially a privacy-focused web browser, their release of Leo AI earlier this year is built into the browser so its native search engine provides a more interactive way of searching,” he says.

SearchGPTs biggest actual challenge is behavioural, Glover says. 

“Google has a complete stranglehold on all searching behaviours with its default inclusion in Chrome, Maps and on Apple devices. People just ‘Google it’ when they want to find anything currently.

“Pepsi tastes better but has nowhere near the sales of Coke. Why? Because people default to Coke and Coke controls distribution. Both which can be directly applied to Google vs. SearchGPT. So even if SearchGPT gives people a better answer to search queries, I struggle to see it replacing Google anytime soon for the vast majority of people due to how ingrained Google is within their lives.”