PROUDLY CANADIAN

loading

LET’S COLLABORATE!

Ready to elevate your project or have questions? Let’s talk.

How AI Answer Engines Have Disrupted Traditional Digital Advertising

Written by

Katia Martin
digital advertising blog post on AI answer engines

Did you know that those who were once at the top of search ranks are now receiving 58% less clicks? It wasn’t too long ago, in the pre-ChatGPT halcyon days of the internet (i.e., before 2023), that performing a search was fairly simple: a quick input of a few keywords into Google would lead to a list of websites you could peruse and vet according to your needs and personal tastes.

How Traditional Online Sales have Been Turned Upside Down  

The advent of AI has changed the game, when it comes to online traffic. Even Google Ads have significantly been affected by AI-powered features such as AI Overviews and AI Mode. As anyone searching the internet has likely noticed, these AI-generated answer summaries can appear at the top of the page following a search, potentially pushing traditional search results further down the page and changing how users interact with relevant websites.

As informational query click-through rates have declined, Google has increasingly integrated conversational and product ads into its AI-powered search experience as it seeks to maintain advertising revenue. In turn, a forward-thinking Google Ads agency needs to address the impact AI now has on digital searches, branding, and ad designs, as well as how to leverage, among other techniques and platforms, Meta advertising and social media advertising to ensure their clients stay ahead of the AI curve.

How AI Answer Engines Are Changing Google Ads Campaigns

It used to be that a Google Ads agency would rely on SEO tactics or Google Ads campaigns to create traffic on a website. However, AI is changing how people interact with search results. Rather than visiting multiple websites, users can increasingly receive concise answers directly on the search page, potentially reducing clicks to individual websites and therefore reducing their exposure to said website.

As a result, some traditional approaches to digital marketing are becoming less effective in the following ways:

Fewer Clicks on Websites During Searches

These days, when people input a term or keywords into their internet searches, they increasingly expect search engines like Google to provide direct and succinct answers, including informative AI-generated summaries, rather than simply presenting a list of websites. This means someone searching a simple question such as “What is the best burger in Montreal?” may receive enough information directly on the search results page that they don’t need to click on website links or Google Ads.

These are sometimes referred to as “zero-click searches,” because the user gets the information they need without clicking through to another website. While zero-click searches existed before the rise of AI, AI-generated answers are expanding the ways in which users can find information without visiting individual websites. Therefore, the Google Ads agency representing businesses looking to make their online presence known to potential clients should place greater emphasis on searches where the customer is closer to making a purchase.

The Conversational Intent of AI Generated Results

As AI becomes more sophisticated, search engines are becoming better at understanding natural language and the intent behind a query. In the past, a search such as “best burger restaurant Montreal” might have been typical, while today, AI-powered searches can accommodate more natural and detailed questions, such as, “Can you recommend the top three burger restaurants in Montreal and its surrounding areas?”

For its part, Google is becoming better at understanding what a searcher is actually looking for, rather than simply matching the exact words they type. This means businesses need to think about the questions and problems their customers have, not just a list of keywords. For the Google Ads agency that represents these businesses, advertising strategies are therefore shifting from focusing exclusively on individual keywords toward understanding the customer’s overall search intent.

This shift also creates opportunities beyond traditional search. Meta advertising and social media advertising can help businesses maintain visibility on high-traffic platforms where consumers discover, research, and engage with brands.

Incorporating Ads Inside AI Answers

As an adaptive company, Google isn’t reinventing the wheel, when it comes to Google Ads and traditional search advertising. Rather, it is finding ways to incorporate advertising into the new AI-powered search experience.

Today, Google Ads can appear alongside AI-powered search experiences, including text advertisements and shopping or product advertisements. This allows digital advertising to reach potential customers even when they don’t interact with the traditional list of search results.

In other words, AI is changing where and how people see advertisements, rather than eliminating Google Ads altogether. For advertisers, this means adapting to Google’s changing search environment will become increasingly important.

First Step is Making AI Optimization Core to your Strategy

As AI answer engines increasingly shape how consumers discover and evaluate businesses, AI optimization should become a central component of a company’s digital strategy. Also known as Answer Engine Optimization (AEO) or Generative Engine Optimization (GEO), this approach involves creating clear, authoritative, and well-structured content that AI platforms can easily understand, trust, and reference in their responses. 

Businesses can improve their online visibility by answering common customer queries through an FAQ page, demonstrating expertise, incorporating relevant structured data, and maintaining consistent information across their website and other digital platforms. I go into more detail in this article about AI optimization strategies.

While traditional SEO and Google Ads remain important, optimizing content for AI answer engines gives brands another way to appear during the research and consideration stages—even when users do not click on a conventional search result. A forward-thinking digital advertising agency should therefore connect AI optimization with SEO, paid advertising, content, and branding to help its clients remain visible throughout an increasingly fragmented online customer journey.

Recommended Strategies for Digital Advertising in the Age of AI

To adapt to the ever-evolving influence of AI on digital advertising and search engine results, the forward-thinking Google Ads agency will engage in the following practices regarding branding and ad designs. 

Additionally, it will take into account Meta advertising strategies and social media advertising strategies to direct traffic toward audiences who are more likely to become customers.

Reduce Informational Ad Spending or “Top-of-the-Funnel” (TOFU)

Businesses, as well as the Google Ads agencies that represent them, need to recognize that not every search is equally valuable to an advertiser. For example, someone searching “What makes a good burger?” is probably looking for a recipe or advice on toppings rather than trying to find a restaurant near them. If that person is immediately greeted by an AI-generated response to their query, they may have little incentive to click on Google ads for a nearby restaurant.

However, someone searching “best burger restaurant near me” is showing a much stronger commercial intent and is therefore a better target for specific ad designs.

This is where audience targeting through Meta advertising and social media advertising becomes particularly relevant. Rather than simply trying to reach the largest possible audience, advertisers can use information about users’ interests, behaviours, interactions, and previous engagement to reach people who may be more receptive to a particular product or service.

A savvy Google Ads agency can therefore focus on finding people who are more likely to become customers rather than simply reaching the largest possible audience. This can help reduce advertising money spent on people who are simply researching and place greater emphasis on audiences with stronger purchasing potential.

Opt for more Bottom-of-Funnel (BOFU) Ad spend

Bottom-of-funnel (also known as BOFU) refers to customers who, through the progression of their search terms, are moving closer to making a purchase.

For example, consider an individual making the following searches in succession:

  • “What is a smash burger?” (looking for information)
  • “Best burger restaurants in Montreal” (showing commercial interest)
  • “Order burger delivery near me” (demonstrating strong and immediate purchasing intent)

In this context, the further “down the funnel” a potential customer is, the more likely an advertisement is to contribute to an actual sale. For a restaurant, targeting someone searching for “order burger delivery near me” may therefore be more valuable than advertising to someone simply researching “what is a smash burger?”

Meta advertising and social media advertising can move customers through this same funnel. An Instagram ad featuring a restaurant’s burgers, for example, may prompt a potential customer to visit the restaurant’s profile or website. The restaurant can subsequently retarget that customer with an offer encouraging them to visit, order online, or take advantage of a promotion.

By applying the principles behind Meta advertising and social media advertising, a savvy Google Ads agency can develop a broader, multi-platform strategy that reaches consumers at different stages of their purchasing journey.

Meta Advertising and Google Ads AI-Powered Automations

AI-powered advertising platforms are increasingly determining who should see an advertisement, when they should see it, and which version is most likely to generate a response. Rather than manually selecting every audience and placement, savvy Google Ads agencies can provide a variety of images, videos, headlines, and descriptions, allowing the platform’s AI to determine which combinations perform best.

For example, a burger restaurant might provide several photos, including menu items, its building or storefront, its menu, company logo, or facade, as well as images of customers enjoying their meals. Google or Meta can then use these different assets in its advertising systems to identify which combinations generate the strongest response.

This is particularly important for Meta advertising and social media advertising on platforms such as Facebook and Instagram, where automated systems increasingly influence which users are shown an advertisement and how frequently they see it. The advertiser’s role is therefore shifting toward creating high-quality content and clear messaging, while the platform handles more of the technical targeting, optimization, and delivery decisions.

Pitfalls of Over Using AI Automations in Digital Advertising

As a digital marketing professional who makes decisions about automation every day, I can confidently say that there are pitfalls to overusing it. Many clients come to me with fully automated campaigns that have produced disappointing results. They often conclude that Google Ads is simply not the right platform for them and that Meta must be the better alternative.

However, when you rely on a fully automated campaign, you give Google considerable control over audience selection and ad delivery. The system uses signals such as search behaviour, engagement and conversion data to determine who is most likely to respond. If those signals are too broad or inaccurate, the campaign can attract irrelevant traffic. For example, if you advertise ceramic tiles using “ceramic tiles” as a broad-match keyword, your ads could potentially appear for searches related to ceramic cafés, ceramic mugs or ceramic figurines.

Automation can work very well, but I generally reserve highly automated approaches for companies seeking broader audience reach. An ecommerce shoe store, for example, sells products that appeal to a wide range of consumers, giving the system more flexibility to identify potential customers. For businesses offering specialized products or services, greater human oversight and tighter targeting are often necessary to maintain relevance and control advertising costs.

Rethinking Ad Designs and Branding in the Age of AI: Kanguru Digital

For expert advice on how to adapt to trends in AI marketing and digital advertising through Meta advertising and social media advertising strategies, contact Kanguru Digital. Our team of experienced professionals will be happy to walk you through a well-researched strategy designed to help your business achieve its digital marketing goals.

RELATED ARTICLES

digital advertising blog post on AI answer enginesDigital Advertising, Digital Marketing

How AI Answer Engines Have Disrupted Traditional Digital Advertising

Read More
SEO, AEO, GEOAEO, SEO

The Evolution of Search Engine Optimization (SEO): A Spotlight on AEO & GEO

Read More
AI Consultants Sheldon Muir and Lawrence TenutaAI Consultation Services

Interview with AI Consulting Experts Sheldon Muir and Lawrence Tenuta

Read More

Work with us

We would love to hear more about your project

Let's Talk