April 3, 2023

Discovering the Impacts of AI Search and Bing Chatbot on SEM

Author: Tyler Truffi

Understanding SEM

Search engine marketing (SEM) is a critical component of any successful digital marketing strategy. However, the world of SEM is constantly evolving, and marketers must stay up-to-date with the latest trends and technologies to remain competitive. SEM stands for Search Engine Marketing, which is a type of digital marketing that involves promoting websites by increasing their visibility in search engine results pages (SERPs) through paid advertising and optimization techniques. SEM encompasses a range of strategies, including pay-per-click (PPC) advertising, search engine optimization (SEO), and contextual advertising.

PPC Advertising

PPC advertising involves paying for your website to appear at the top of SERPs when specific keywords are searched. The payment is made only when someone clicks on your ad, hence the term “pay-per-click.” PPC advertising allows advertisers to target their ads to specific audiences and locations.

SEO Optimization

SEO involves optimizing your website to improve its rankings in organic (non-paid) search results. This involves techniques such as keyword research, on-page optimization, and link building.

Contextual Advertising

Contextual advertising involves displaying ads on websites that are relevant to the product or service being advertised. This type of advertising relies on targeting specific audiences and showing them ads that are relevant to their interests. Overall, SEM is a powerful digital marketing tool that can help businesses drive traffic to their websites, generate leads, and increase sales.

The Rise of AI-Powered Search

The rise of AI-powered search such as the Bing Chatbot is doing,  is one of the most significant developments in SEM. AI search is transforming the way we approach SEM, allowing marketers to target their campaigns more effectively, optimize their ad bids, and automate many routine tasks. 

What is Bing

When it comes to Bing search and SEO, there are several factors to consider. You may have heard of Bing search engine but recent developments have brought Bing chatbot as the current topic of conversation. These two different products and what they offer are as follows.

Bing Search Engine

Bing search engine is a web search engine that allows users to search for information on the internet. It uses a search algorithm to rank web pages based on various factors such as relevance, quality, and popularity.

Bing Chatbot AI

On the other hand, Bing chatbot is an AI-powered chatbot that allows users to interact with a virtual assistant using natural language. It can provide answers to questions, perform tasks, and even hold conversations with users.

Bing Grows to Over 100 Million Active Users

While both products are designed to help users find information, they serve different purposes. The Bing search engine is used for finding information on the web, while the Bing chatbot is used for interacting with an AI-powered virtual assistant. Microsoft launched the new Bing in February, and it has since grown to over 100 million daily active users. 

The Role of AI in SEM

With such rapid growth due to the newest Bing chatbot, we must question the role of AI in SEM. One of the most significant developments in SEM in recent years has been the rise of AI-powered search. AI search is transforming the way we approach SEM, enabling marketers to target their campaigns more effectively, optimize their ad bids, and automate many routine tasks.

Improved Search Relevance With AI Search

One of the most significant benefits of AI-powered search is the improved search relevance it provides. AI algorithms can analyze vast amounts of data on user behavior, search trends, and other factors to identify patterns and insights that can help marketers deliver more relevant search results. For example, AI algorithms can learn from user search behavior and tailor search results to specific users, making it easier for them to find what they are looking for. By improving search relevance, AI search can lead to higher conversion rates and better ROI for SEM campaigns.

More Efficient Ad Targeting With AI Search

In addition to improving search relevance, AI search can also help marketers target their SEM campaigns more effectively. AI algorithms can analyze data on user behavior and search trends to identify patterns and insights that can help marketers better understand their target audience. This can help them create more effective ad campaigns that are tailored to the needs and interests of their target audience. By targeting their SEM campaigns more effectively, marketers can improve their ad performance and get a better return on their investment.

Optimizing Ad Bids with AI Search

Another way that AI search is transforming SEM is by optimizing ad bids. AI algorithms can analyze historical data on ad performance to identify patterns and insights that can help marketers adjust their ad bids in real-time. This can help them ensure that their ads are shown to the right audience at the right time, maximizing their ROI. By using AI to optimize ad bids, marketers can get more value from their SEM campaigns and improve their overall ad performance.

Automation of SEM Tasks with AI Search

Finally, AI search can help marketers automate many routine SEM tasks, such as keyword research, ad creation, and campaign optimization. By using AI-powered tools to automate these tasks, marketers can save time and effort, allowing them to focus on higher-level strategic tasks. This can help them achieve better results more efficiently and with less manual effort.

How Will Bing New Additions Impact SEM?

Microsoft’s Bing AI chatbot is about to introduce new advertising features for Bing and Edge to boost traffic and revenue for publishers.The company is exploring various ideas, such as links to additional articles from a publisher when a user hovers over a link to that publisher, as well as rich captions of licensed content from Microsoft partners that can appear next to chat answers.

Bing Already Includes Ads

To be clear, Bing already includes ads in some of its responses. For instance, if a user searches for “iPhone 14,” the search engine will display a product listing linked to its shopping tab. However, the recent announcement means that Microsoft is ramping up its efforts to drive traffic and revenue to publishers.

New Advertising Features for Bing Chatbot

Microsoft is exploring new ways to increase revenue for publishers. One of these is links to additional articles from a publisher when a user hovers over a link to that publisher. The other is the rich captions of licensed content from Microsoft partners that can appear next to chat answers. These features will allow publishers to reach more users and increase their revenue.

What Does The Future of SEM with AI Search Look Like?

It is unclear how many ads Bing chat users will see or when they will begin seeing them. However, what is clear is that Bing chat’s ad-free days are numbered. AI search is transforming the world of SEM, providing marketers with new tools and techniques for targeting their campaigns more effectively, optimizing their ad bids, and automating many routine tasks. 

Approaching SEM with AI search

AI-powered search and Bing chatbot are transforming SEM by improving search relevance, targeting SEM campaigns more effectively, optimizing ad bids, and automating routine SEM tasks. The latest Bing additions will undoubtedly impact SEM by introducing new advertising features that boost traffic and revenue for publishers.  By staying up-to-date with the latest trends and technologies in AI search, SEO experts can help their clients achieve better results and stay ahead of the competition.

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