The Market Report

This Week in Digital Marketing: Ready or Not, AI Search is Here to Stay

March 14, 2025

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AI has transformed the way we search, evaluate information, and advertise online – and there’s no turning back. This week, we explore how consumers favour AI-generated results over traditional ads, Google’s push to integrate ads into AI Mode, and what all this means for brand reputation.

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1. AI Search: The New Trust Standard?

We’ve said it before and we’re saying it again: search is changing and there’s no stopping it. We know that AI search could potentially threaten the superiority of search engines, but there seems to be another development.

According to a new study, 41% of users trust AI results over paid search ads. Unlike old-school search engines that list links, AI tools deliver direct answers, which make them feel more authoritative and knowledgeable on the topic (even though they’re actually not, but that’s beside the point).

This may mean that a mention in AI-generated information could soon matter more than buying ad space. For now, however, brands can’t pay their way into AI-generated answers. Instead, they’ll have to earn their place by creating content that AI search engines see as useful.

What this means for you:

The same report found that 27% of consumers now use AI for at least half their internet searches – and that number is only bound to grow. It’s time to rethink your approach and create content optimised not only for traditional search engines but also for AI tools.

It’s important to remember that AI-generated answers don’t work like search engine results. There is no way to secure the top spot: no bidding, no paid ads. While waiting for that to happen, all you can rely on is high-quality, well-structured content that AI tools recognise as valuable.

2. Ads Are Coming To Google’s AI Mode

We might have spoken too soon, as Google announced its plans to monetise its new AI Mode, a search feature that delivers multi-step answers to complex queries. While ads aren’t there yet, the company plans to follow the same game plan used for AI Overviews, where ads appear beneath AI-generated responses under a “Sponsored” heading.

Though Google claims user response to these ads has been positive – as expected – advertisers are wary. AI Mode is supposed to be conversational in nature, designed to keep users engaged within the AI platform, which could mean lower click-through rates. In addition, search placements could be classified as premium real estate, which could push up costs.

In other words, it’s not looking to be a win-win situation for advertisers right now.

What this means for you:

AI Mode ads could be a gamble. If it follows the design of AI Overview ads, it might offer strong visibility, but the chat-based format means users are less likely to click away from the conversation. Before jumping in and paying for space, observe how early ads perform: if engagement and conversions are low, your ad dollars might be better spent elsewhere.

If you do decide to invest, focus on ads that provide direct, useful answers rather than content that just grabs attention.

3. Brand Reputation in the Age of AI Search

Generative AI is reshaping search, but what about brand reputation? Unlike traditional search rankings – where you could somewhat control what users see about your brand – AI tools pull from a mix of owned content and third-party sources. This means brands have less direct control over how they’re represented, as AI-driven results can misinterpret or even distort messages.

The good news is that authoritative, relevant content still has influence over these results. Research shows that 46-51% of AI-generated brand mentions come from sources controlled by the brands themselves. Hence, brands can still achieve some controllability over how they’re portrayed, but make no mistake: it will take thorough and dedicated management from your virtual marketing manager.

What this means for you:

Brand reputation management is more complex than ever; however, it doesn’t mean you have zero control over it. Because AI tools pull content from what’s available, make sure your voice dominates – otherwise, someone else’s will. Prioritise creating clear, authoritative content that answers real questions, and don’t forget to observe new developments in AI search.

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