You’ve probably heard of Google’s spectacular failure during the demo of their AI bot, Bard, which was meant to rival OpenAI’s ChatGPT. Don’t be mistaken, Google is not bowing out of the AI race. Far from it.
AI chatbots have been all the rage since the start of 2023, but there hasn’t been much focus on what this means for the future of search engines. If you think about it, AI chatbots could replace search altogether. Google is all over this and is in the process of building an “all-new search engine” by adding AI features to it - code name, “Project Magi”.
What is Project Magi?
According to the New York Times, Google's Project Magi is a response to increasing competition in the search engine market, particularly from companies like OpenAI and their partnership with Microsoft. Google has 160 engineers working on the initiative, which aims to incorporate more artificial intelligence (AI) features into its search engine to stay ahead of its competitors.
What changes to search can we expect with Project Magi?
1. Google plans to make search more conversational and adaptive
Google’s new chat-like interface would resemble interacting with an AI assistant, like Amazon’s Alexa or ChatGPT, but would be even smarter and more adaptable, learning from users' past conversations and providing more relevant answers. This new approach to search is designed to offer users tailored results, moving away from the traditional method of displaying ten results per page.
2. Google plans to facilitate transactions directly on its platform
Right now we have products showing up under Google’s ‘Shopping’ tab and as sponsored shopping ads. This is limited to e-commerce products and often requires you to visit the seller’s website to complete the purchase.
With Project Magi, we can expect more products and services such as flight bookings and real estate listings to feature on Google’s new search platform. Not just that, you will be able to make purchases or bookings without leaving Google's search engine. Google aims to handle these transactions through Google Pay, making the process simple and seamless for users.
What does Project Magi mean for marketers?
1. SEO is likely to change
The introduction of Project Magi will lead to a new form of SEO, where optimising your website to have your products and services displayed within Google's search results becomes crucial. There will likely be more emphasis on setting up your business directly within Google portals such as the Google Business Profile and Google for Retail.
2. Media Buying will move from CPC to CPA
One suggestion is that Google will eventually shift to a cost-per-acquisition model, simplifying the process for marketers and improving user experience. With the new search interface, Google will likely be able to generate more personalised information, including products and services, which should improve conversion rates. Plus, moving from a CPC to a CPA model will be more cost-efficient for marketers.
3. New Ad placements
While Google will continue to display ads as a source of revenue, how they are displayed will likely change. Google search might become more like social networks, with a feed mixed in with ads or a “suggested for you” section on the side, instead of the current method of displaying search results sandwiched between ads at the top and bottom.
Overall, Project Magi represents a significant shift in the way Google approaches search. With its focus on providing users with the most relevant and personalised results possible, it has the potential to change the way we search, purchase products and services, and even compete in certain industries.
As marketers, we should keep our eye on the progress of Project Magi and ensure that we adapt the way we optimise our digital properties and marketing strategies to stay relevant during this AI revolution.
Resource: The New York Times - https://www.nytimes.com/2023/04/16/technology/google-search-engine-ai.html
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