Marketers are using AI search concerns to argue for higher media budgets
Brands with long consideration journeys, like insurance and cars, are paying close attention to shifting search behaviors. They're using that concern to make their case for more media dollars.
Consumers are increasingly relying on generative AI tools to research and make decisions about purchasing a variety of products, from running shoes and home insurance to luxury cars. According to a survey of 2,600 shoppers conducted by digital agency Dept., 61% of U.S. consumers used an AI assistant for shopping research or decisions within the past three months.
This shift in consumer behavior presents a challenge for advertisers in these categories, as they become more vulnerable to changes in search behavior caused by the emergence of AI search tools such as Google's AI Overviews and ChatGPT.
Rather than relying on search engine optimization (GEO) tactics, Chief Marketing Officers (CMOs) are using concerns over these AI shifts to advocate for larger media budgets and increased upper-funnel activity. This approach suggests that marketers are recognizing the growing influence of AI on consumer decision-making and are adapting their strategies accordingly to maintain their market presence.
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Written by urgent.news from Digiday's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
