AI-generated content in $Alphabet-C (GOOG.US)$ search resul...
AI-generated content in $Alphabet-C(GOOG.US$ search results continues to grow at a disturbing rate. The % of websites with AI content this month was almost twice the % last year, climbing to almost 12%
The spread of AI generated content has a few implications for $GOOG and several companies in the media/internet space…
Perversely, I think this trend benefits Google.
As more AI content saturate the search results, it makes it even more competitive for companies to compete for limited digital real estate. Which means they’ll have to pay even more for online advertising if they want visibility. Companies like $Alphabet-C(GOOG.US$ , $Microsoft(MSFT.US$ (with LinkedIn), $Meta Platforms(META.US$ and even $Roku Inc(ROKU.US$ could benefit from all these new ad dollars
Remember, all this new AI generated content is in addition to AI generated answers shown on the very top of many Google search queries, which pushes down organic search results even further.
Of course, this trend isn’t new. It’s been ongoing for the past decade+ with content farms, auto-generated content and AI will only exacerbate it. While it’s true that consumers might switch to ChatGPT but consumer habits are very hard to change over time.
2nd, as AI-generated content becomes popular, ppl will become increasingly skeptical of anything they read online, especially if it’s not from a reputable brand or influencer.
Which means they’ll increasingly start to look for “human content”. Platforms like $Reddit(RDDT.US$ should continue to benefit (and already have been as shown by the popularity of appending “Reddit” to many searches).
I also think influencer marketing will continue to be big as well, though I don’t know how you would play this in the public market. But if you have a huge loyal following with lots of connections, you will be highly coveted by brands.
3rd, I think this trend doesn’t bode well at all for any new companies or startups. The barrier to entry to making anything whether it’s online content, a product, a cold email has been diminished to almost zero with AI.
Yet the amount of $$$ needed to market and sell that product has increased tremendously. AI generated content will saturate almost every single marketing channel: not just search results. But social media, email, even cold calls. Good luck trying to reach anyone when the other persons guard is high, skeptical that they’re being pitched to by an AI bot.
It’s always been hard to sell anything, but with AI, it will become almost impossible to sell anything unless you are already a big brand and have the distribution network in place.
Once again, the big players and incumbents in SaaS like $Salesforce(CRM.US$ $Microsoft(MSFT.US$ $ServiceNow(NOW.US$ $Alphabet-C(GOOG.US$ will benefit here.
Source of chart below: Originality (dot) AI
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