Evans: Generative AI does not destroy search advertising economics
Benedict Evans · Buzzfeed News, Reddit and OpenAI · Apr 24, 2023 · at 24:03
Benedict Evans analyzes the business impact of LLMs like ChatGPT on the traditional search engine model and advertising ecosystems.
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“I mean, this is kind of, you know, like the kind of the, like the first five minute reaction to GPT, 3.5 is this is a catastrophe for search advertising, which you kind of pull back and think, well, it's already not actually, you know, if I get, I can go to chat GPT and I can say, make me an itinerary for three days in Barcelona. I will know in the past you would have used Google. You'd have got lots of links to websites. You've clicked on all of them. It would have driven traffic. Now it doesn't drive traffic, but this person wants three days in, is doing three days in Barcelona. I can put hotel ads and allied ads up to that. So it doesn't drive traffic, but it actually does drive the advertising.”
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