Tue May 20 2025Blog

How AI is Changing Search Marketing and What You Can Do About It

Marketing executives are no strangers to change – but the rapid transformation happening now due to AI may only rival the introduction of the Internet itself.

The digital marketing landscape is no longer static. It’s being reshaped by the burgeoning capabilities of artificial intelligence (AI). And AI is not just a tool – it’s an agent of transformation that affects every facet of digital marketing today. At Lamark, we understand the profound impacts AI is having on the industry and are committed to helping brands leverage this shift to gain a distinct competitive advantage.

Download our POV on AI Search Impacts

Understanding the Shift: The Rise of AI-Native Search Engines

AI-native search engines like ChatGPT, Perplexity, and Google Gemini are shifting from peripheral tech novelties to primary tools for information discovery, research – and even commerce. Unlike traditional search engines that deliver lists of links, these platforms provide direct answers, reshaping user habits and expectations.

The implications for brands are profound. Unlike the old-school SEO tactics that prioritized keyword rankings on search engine result pages (SERPs), optimizing for AI-native engines requires a focus on “answer optimization.” This involves engineering content in structured formats, ensuring rich metadata, and emphasizing factual, high-quality information.

Who is Using AI Search Now?

Approximately 70 million U.S. users are actively using ChatGPT for AI search today^[1]. By 2027, this is projected to grow to 90 million, and by 2030, a staggering 200 million – approaching the 270 million users of traditional search today.^[2]

Who are these users?^[1]

Tech-savvy consumers and students
Knowledge workers, like marketers, developers, and researchers
Especially strong in the 18-34 age range
Slight male lean (58-60%)

How AI Agents Are Changing Search and Advertising

AI agents, the new(er) tools on the block, can perform tasks for users, effectively becoming the intermediary, not the interface, capable of filtering, deciding, and even recommending products. Current (and constantly changing) stats tell a story of explosive growth:

In October 2024, Google Search’s market share hit its lowest point (89.34%) since 2014^[3]
ChatGPT handles over 37.5M search-like queries daily^[4]
Perplexity grew from 35.28M in September 2023 to 159.7M monthly visits in March 2025^[5]
eMarketer forecasts ad exposure drops of 38–47% during discovery and consideration stages due to agent usage^[6]

The Imperative for Generative Engine Optimization (GEO)

Optimizing for AI is slightly different than traditional SEO. GEO is an added layer, a new technique for a new technology, says Lauren Schneider, senior director of SEO.

Generative Engine Optimization (GEO) emerges as a critical strategy in this new environment. GEO focuses on ensuring content is not only accessible but preferable to AI-native tools by embedding structured Q&A formats, clear citations, and robust author credentials. Brands that seize this opportunity early will not only enhance their visibility across these new platforms but also secure a first-mover advantage in burgeoning AI ecosystems.

Redefining Success: New Metrics for a New Age

To effectively leverage how AI is changing marketing, organizations need to rethink performance metrics. Traditional KPIs such as organic reach and traditional traffic are becoming less indicative of true impact. Instead, focus should shift towards AI-centric metrics—like how often your brand appears in AI-generated responses and its influence within the AI ecosystem.

What We Know about Advertising in AI Platforms

Opportunities for brands to get exposure in AI engines are emerging and are expected to rapidly evolve.

Currently available integrations and ad support among major AI engines, May, 2025

Advertising with Perplexity

Advertising with Perplexity is currently in a closed beta. Large retailers may signup to express interest in their Merchant Program.

Ad Formats:

Sponsored Related Questions: Brands can sponsor follow-up questions that appear below AI-generated answers.
Display Ads: Ads placed alongside generated responses.
Video Ads: Available on mobile (top of related questions) and desktop (side screen).

To address concerns about content usage, Perplexity introduced a revenue-sharing model. When Perplexity references content from participating publishers in its responses, those publishers receive a share of the advertising revenue generated by that interaction.

Advertising with ChatGPT

Internal documents indicate that OpenAI anticipates generating approximately $1 billion in revenue from “free user monetization,” which includes advertising initiatives, by 2026. This figure is projected to grow to nearly $25 billion by 2029.^[7]

As of May 2025, merchants and retailers can now opt-in to submit structured product feeds to OpenAI. These feeds will help ChatGPT present accurate, brand-controlled results for shopping queries — laying the foundation for in-chat commerce and product visibility.

Ad Formats: Potential ad formats include native ads within conversations and sponsored responses, leveraging ChatGPT’s conversational capabilities to deliver personalized advertising content.

Understand the Full Impacts of AI on Search Marketing

In our full POV, we explore the major implications that changes in search behavior have on marketing, including:

How the definition of search is evolving
Organic click-through rate decline
Why content must be designed for AI comprehension
What queries are still favored in traditional search
How measurement and analytics will need to adapt
and more…

Download the full report now.

How Executives Can Take Action Now

Marketing executives should take proactive steps to integrate AI strategies into their frameworks. Here are crucial actions we’re helping our clients with:

Conduct AI-Readiness Audits: Assess your current strategies and optimize for Generative Engine Optimization (GEO) to enhance visibility on AI-native platforms.
Engage with AI Ad Programs: New advertising opportunities are emerging on platforms like Perplexity and Google Gemini. Participating in beta testing can give your brand a first-mover advantage.
Adopt AI-Friendly Content Formats: Create structured, factual content designed to align with AI search criteria, ensuring your information is accessible and authoritative.

What Comes Next?

Understanding how AI is changing marketing is crucial to remain competitive in today’s digital arena. For companies committed to leveraging AI effectively, the rewards are significant. Lamark Media is dedicated to helping businesses adapt to these changes, ensuring their strategies are aligned with AI’s evolving role in digital marketing.

Download our full POV to explore detailed insights and recommendations for leveraging AI in your marketing efforts.

Together, we can unlock AI’s potential, driving growth and innovation in your marketing strategies. Let’s navigate this transforming landscape with confidence and foresight, ensuring your brand’s growth and dominance in the AI-driven future.

Sources: