Thirty years after the internet’s first ad banner went live, digital marketing is undergoing its biggest transformation yet. As users swap search engines for AI chatbots, the rules of brand discovery and consumer engagement are being rewritten. 

Ads In AI Era: Rather than typing keywords into Google and navigating links, consumers are now using AI tools for product recommendations. This behavioural pivot has given rise to answer engine optimisation and generative engine optimisation. But unlike legacy SEO systems, AI platforms offer no common ranking system or standard playbook.

Attribution Problem: For marketers, the biggest challenge is determining whether AI visibility actually drives traffic, customers and sales. This is because multi-step queries and zero-click answers make traditional click attribution nearly impossible. Inconsistent citations and reliance on third-party content further weaken brand control. 

As such, experts believe that brands should build a consistent information flow across their digital ecosystem to avoid appearing next to misinformation or unsuitable content.

Ads Enter The Chat: As marketers struggle with the AI RoI question, OpenAI is also creating a new commercial layer around its AI assistants. It has begun rolling out ads for ChatGPT’s free and Go users in India, with more than 50 brands expected in the initial rollout. By tapping ad agencies and opening a self-serve ads manager, OpenAI is looking to monetise its huge user base in the country. 

The New Toolkit: Meanwhile, a new wave of startups is building tools to bring measurement and commerce to AI search. While the likes of RankinLLM are tracking brand mentions and sentiment, TruCommerce is connecting product catalogues directly to AI platforms to enable in-chat purchasing.

Source link