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Meta AI search engine could disrupt online advertising

Meta is working on a search engine powered by AI that will crawl through the internet for information. This could change how online advertising is sold.

The Information published a report Monday saying that Meta is currently using Google and Bing to provide information to its AI chatbot about news, sports events, stock prices, and current affairs. The company hopes to change this.

Meta aims to increase its revenue by selling hyper-targeted advertisements that are sold at premium prices.

A chatbot that allows users to control the conversation is likely to keep them on Meta for longer. This gives Meta more time to show more ads.

Amanda Robinson (CEO of Meta) explained that by entering the AI Search arena Meta will acquire more data directly from their own data, without having to rely on third-party sources or reporting. The Digital GalToronto-based digital marketing agency.

She told the E-Commerce Times, “I can see how this could replace the tracking methods used in the past such as Pixels and help us get closer to showing more relevant ads to the right people.” This is a win for users and advertisers alike.

Meta would also win. “Ad rates may go up,” said Ross Rubin. Reticle ResearchA consumer technology advisory company in New York City.

He told the E-Commerce Times that “you know something about someone who is doing a search today because of their search history. But you could learn a lot about them with AI based on their prompts, their follow-up, and their other actions.”

Conversational Advertising

Chris Ferris – senior vice president for digital strategy at Pierpont CommunicationsA public relations agency located in Houston.

He told the E-Commerce Times that Google Ads are so successful because people search with high intent. Facebook and Instagram ads are based upon assumptions about what people like. If I’m interested in soccer, I will see ads for soccer shoes. I am 55. I’m no longer a soccer player. Meta could be very useful if they can layer search results on top of the other information that they have about their users.”

He added, “Color my skepticism that Meta is good in developing new technology.” I think this will be like their mixed reality headsets, a lot spent for very little return.

Kaveh Vahdat is the founder and president RiseOppA fractional CMO agency based in San Francisco noted that Meta’s development of an AI-powered chatbot for search signals a possible shift in the dynamics of online advertising and search.

He told the E-Commerce Times that Meta’s AI is aiming to provide conversational answers, which integrate current events and personalized recommendations. “This approach may alter user engagement as well as shape online ad spend, if businesses adopt a dialog-centric advertising model. Meta’s AI could be used to target ads in a more dynamic way, making them feel less intrusive.

He added that “Google has a stronghold on search, with around 90% of the market, but Meta’s entry may challenge this dominance as users shift their preferences to conversational and integrated searches.” “Meta’s AI could leverage real-time data from its social platforms to generate highly personalized and targeted ads — something traditional search engines don’t currently offer in the same way.”

Google Search Dominance Continues

Meta is unlikely to challenge Google’s dominance in search. “Meta forays into search are a long shot and I don’t think it will change the industry in a meaningful way,” Jordan Stevens, of Jordan Stevens Digital MarketingA consulting firm in Toronto.

He told The E-Commerce Times, “Consumer behaviors are behind Google’s massive lead and that is hard to change.”

Malik Ahmed Khan is an equity analyst at Technology. Morningstar Research Services Chicago pointed out that Meta is not interested in making a standalone search product. He told the E-Commerce Times that Meta does not have a long-term plan to create a standalone product.

This could mean that search volumes are lower as more people use Meta’s FoA to search. [family of apps]? He continued, “Yes.” We don’t think this is a threat to Google’s dominance in search.

He said that the primary argument for his position is that Google’s search product, as it stands today, is responsible for the majority of online searches. “It is unlikely that Meta’s search product — whenever it is rolled out, which, by the way, could be some time away — could take a material portion of monetizable searches away from Google.”

Dev Nag added that the company’s CEO and founder, Dev Nag said: “Building Google Killer wasn’t our goal.” QueryPalA chatbot for enterprise in San Francisco.

He told the E-Commerce Times that it was about making platforms more capable, self-sufficient and less dependent on competitors. The real battle is not for traditional web searches, but to be the primary interface by which people find and interact with digital information.

Prelude to everything app?

Baruch labunski, CEO at Meta, suggested that Meta’s development of an engine to crawl the web could be just the start of something bigger. Rank SecureToronto-based is a firm that specializes in website design and search engine optimization.

“It is an open secret the larger social media platforms, namely Meta and X, want to dominate the web with ‘everything platforms,'” he told the E-Commerce Times.

“That means that you would go to the site and search, use a chatbot, visit social media, order and ship items, and perform all sorts of other transactions,” said he. It could evolve into a system of financial exchange for each platform, with crypto as its primary currency. Google’s share in the internet pie would be greatly reduced if such a development were to occur, since people wouldn’t use it any longer.

He added that “Google could become Ask Jeeves without offering something more to keep customers on its search.”

Anthony MiyazakiProfessor of Marketing at Florida International University in Miami argued that Google would be wise to intentionally give up its market share to avoid government interference that could destroy the company’s dominance.

He told the E-Commerce Times, “This is when Meta comes into play.” Meta’s search function on Facebook and Instagram has been substandard for many years. In fact, the impressive search capabilities of TikTok are what seemed to have recently awakened Meta to its search deficiencies now that TikTok is the primary search platform — over Google even — for younger audiences.”

“Zuckerberg has an advantage, because Google and Bing have already tested AI integrations in search,” he said. “Starting from AI as the basis for search will create an enhanced search experience that will likely appeal Meta’s Instagram, Facebook and other audiences.”