The Future of PPC in a Conversational AI-Driven World

Let’s cut to the chase—there’s a bigger disruption coming for PPC Managers than many have anticipated. While much of the industry has been fixated on changes in search algorithms or new ad formats, the real threat is looming from the rise of conversational AI.

If you’re still running campaigns like it’s 2019, it’s time to rethink your strategy. As conversational AI continues to evolve, PPC managers face a landscape that is rapidly shifting beneath their feet.0

What Happens to Google Ads and Microsoft Advertising?

Google Ads and Microsoft Advertising have long ruled the digital ad space, generating billions in revenue. But what happens when users no longer interact with search engines in the traditional way?

With the growing dominance of AI-powered tools like ChatGPT, Perplexity ai and Google’s Gemini, users are increasingly skipping the search results pages (SERPs) and instead getting direct, conversational answers. This presents a fundamental challenge to the paid search model. As of 2023, more than 25% of global users report using conversational AI for search queries, a number that’s expected to grow significantly by 2025.

If users stop scrolling through SERPs, where does that leave your Google Ads strategy? The premium SERP real estate that Google Ads relies on may shrink dramatically. For PPC managers, this poses a direct threat to campaign performance, ROI, and budget allocations. The rise of conversational AI means fewer clicks on traditional ads—and this is where the alarm bells should be ringing. 

Is Shopping Ads the Next Casualty?

For Google Shopping, the situation is even more precarious. The entire business model is built on visibility—users need to see product ads to click on them. But if consumers are increasingly relying on AI-generated responses instead of browsing, where do those product listings go? There’s speculation that conversational recommendations within AI models could replace traditional product ads. But how this will be monetized, and how competitive bidding might function in such an environment, remains a massive question mark. For shopping Google Lens seems to be a really good alternative Solution to catch up those who are willing to see a product and buy it – but you need to optimise your images for Google Lens. Google Lens is still growing, see the report from Google here. 

Microsoft, on the other hand, with Bing now integrated into ChatGPT, may attempt a more seamless pivot by embedding ads into conversational flows. However, even this raises significant concerns about the user experience. How do you place ads within conversations without making them feel intrusive? If conversational search becomes the norm, the value of your current PPC strategy may drastically diminish.

Social Ads: A Temporary Safe Haven?

For now, social media ads may seem like a safer bet, but paid social managers shouldn’t get too comfortable. While social platforms like Meta, LinkedIn, and TikTok are less dependent on direct search behaviour, AI could still disrupt user interactions across these platforms. AI-powered recommendation engines might evolve to suggest content and products before users even realize they’re searching for them.

This trend could lead to new forms of conversational ad placements, possibly blending seamlessly into user experiences on social platforms. As users adapt to these AI-driven experiences, the line between content, conversation, and advertising may blur further, potentially reshaping the entire paid social ecosystem.

Navigating the Shift: How PPC Managers Can Adapt

The rise of conversational AI isn’t just a minor tweak in how users search—it’s a seismic shift that could reshape the digital advertising industry. PPC managers must prepare now if they want to thrive in this evolving landscape. Here’s how:

Diversify Your Ad Channels

If you’re still heavily invested in Google Ads, it’s time to explore other channels. Consider allocating more budget to affiliate marketing or native ads, which can provide a more resilient and adaptable advertising strategy. Affiliate programs, in particular, offer a performance-based model that may be more sustainable as the traditional PPC landscape changes.

Explore Native Ads

Native ads blend with the surrounding content, providing a more organic user experience that is likely to be less disrupted by AI-driven search behaviors. By focusing on native ads that align with user intent, PPC managers can maintain visibility in an evolving digital ecosystem.

Leverage Conversational Ads

Start experimenting with conversational ad formats. This could mean working directly with platforms like ChatGPT or Google’s Gemini to test ad placements that seamlessly integrate into AI-generated content. Think of it as the future of native advertising—where ads become part of the conversation, rather than a disruption.

Adapt to New User Behaviors:

As AI reshapes how users search and engage with content, focus on understanding these new behaviors. The shift toward AI-driven search means that direct engagement through traditional PPC methods may decrease. Be prepared to test new ad formats and strategies that cater to the conversational AI experience.

Strengthen Brand Trust

In an environment flooded with AI-generated recommendations, building strong, authentic relationships with your audience will become critical. Brands that focus on transparency, reliability, and high-quality content will have an edge over those that rely purely aon traditional PPC methods.

Conclusion: The New Frontier for PPC Managers

PPC advertising as we know it may be facing its biggest challenge yet. As conversational AI continues to disrupt search behaviors, paid search managers need to act quickly to stay ahead of the curve. Diversifying ad channels, exploring affiliate and native advertising, and adapting to new AI-driven user experiences are all essential strategies for surviving in this new world.

The bottom line? PPC is far from dead, but it’s changing fast. Those who adapt will thrive. Those who don’t could find themselves left behind as AI takes center stage in search and advertising. And don’t forget to work with your friendly SEO around the corner – in these times of change we have to work together. 

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