Meta is reportedly developing an AI-powered search engine that will crawl the web for information. This move could potentially transform how online advertising is conducted. Currently, Meta’s AI chatbot sources information from Google and Bing.
Will crawl the web -> Meta is working on a search engine that provides conversational answers about current events for Meta AI users, to reduce its reliance on Google and Bing https://t.co/zexHGZOw9d
— Glenn Gabe (@glenngabe) October 28, 2024
However, the company aims to change this dynamic by eliminating reliance on external search engines. By doing so, Meta hopes to sell hyper-targeted ads at premium prices. Maintaining user engagement longer within Meta’s ecosystem would provide more opportunities for ad placements.
Running Google Ads? Interesting -> Google Quietly Tests AI Search Ad Tool to Help Advertisers Reach New Audiences
"Google has been pitching advertisers on a new AI-powered search tool, called Search Bidding Exploration, which aims to find new pockets of valuable traffic. It… pic.twitter.com/nSDw6EJ8FI
— Glenn Gabe (@glenngabe) October 28, 2024
Since when is sitting yourself down on the toilet and sh**ing out AI innovation a good business strategy that will hold for the long term?
Thank you Meta for deciding to create an “AI search engine” and inspiring this post.
(Hear @erinsparks & I kvetch about this on… pic.twitter.com/b4eij1jsny
— Mordy Oberstein *Is an asset* (@MordyOberstein) October 30, 2024
Amanda Robinson, CEO of a digital marketing agency in Toronto, explained that this could result in more relevant ads without older tracking methods like web pixels. “By Meta entering into the AI Search arena, more of the data they are acquiring will be happening from first-party data,” Robinson said. “This is a win-win for both the users and advertisers.”
Ross Rubin, the principal analyst at a consumer technology advisory firm in New York City, also noted that ad rates could increase.
“You can understand a lot more about a person with AI depending on how they engineer their prompts and other activities,” Rubin added.
Meta’s AI ad evolution
Chris Ferris, senior vice president of digital strategy at a public relations agency in Houston, highlighted the potential impact on user engagement.
“If a Meta search engine made Facebook or Instagram more sticky, that would allow it to reach more online users,” he explained. Adding search data to Meta’s existing user information could be very powerful for targeted advertising. However, some experts remain skeptical about Meta’s ability to develop new technology successfully.
Kaveh Vahdat, founder and president of a fractional CMO agency in San Francisco, suggested Meta’s development might signal a shift in advertisement dynamics towards more dialogue-centric models. “Unlike Google’s fact-based search model, Meta’s AI aims to deliver conversational answers that integrate current events with personalized recommendations,” he said. Jordan Stevens of a consulting practice in Toronto pointed out that consumer behavior is deeply rooted in Google’s massive lead in search.
Malik Ahmed Khan, an equity analyst in Chicago, further emphasized that Meta’s search tool would likely be confined to its own ecosystem, thus posing little threat to Google’s dominance. “Building a Google Killer isn’t really the goal here,” added Dev Nag, CEO of an enterprise chatbot in San Francisco. “It’s about making their platforms more capable and self-sufficient while reducing dependency on potential competitors.”
Baruch Labunski, CEO of a website development and SEO firm in Toronto, contended that Meta’s development of a web crawling engine could be part of a broader plan for an “everything platform,” integrating search, social media, e-commerce, and possibly financial services.
The potential rise of Meta’s AI search engine presents both opportunities and challenges, making it a development to watch closely in the coming years.
