On Tuesday, Microsoft announced that Bing, its search engine, will be integrated into ChatGPT, a viral chatbot developed by OpenAI’s partner, to enable users to access real-time information. This move is part of Microsoft’s efforts to increase its share of the global search advertising market, which is predicted to reach a worth of $286 billion. Industry analysts believe that Bing’s inclusion in ChatGPT is Microsoft’s attempt to narrow Google’s data advantage and thereby improve its AI capabilities. However, Alphabet has significant advantages in data, distribution, and AI-based ad technology over Microsoft. Google recently revealed a set of AI technologies that will allow marketers to create unique text or display ads based on user queries and advertiser data submitted through the search engine. Bank of America has reaffirmed its Buy recommendation on Alphabet’s shares, citing Google’s continued use of AI to enhance its ad offerings as a benefit to its market position.
According to a research analyst from Bank of America, Justin Post, although Bing’s integration in ChatGPT might reduce Google’s data advantage, the technology giant has three significant advantages: data, distribution, and AI-based ad technology. Post noted that Google’s web traffic has remained stable, whereas Bing’s has declined, and that ChatGPT appeared to be moderating between 45 to 65 minutes per day. He added that there had been no increase in web traffic since the introduction of the ChatGPT app on May 18. The ChatGPT iOS app has been downloaded 711,000 times since its introduction last week, but downloads have begun to decline on a daily basis (-23% day/day), and the app is scheduled to be published soon on Android and in other countries.
Google has been making significant AI investments, including unveiling several additional tools for marketers to use generative AI for campaign design and management across Google domains. Reports suggest that the tool will be free for marketers and will enhance relevance and conversions.