How will features like Google’s AI Mode impact how people market?

AI search features are transforming traditional marketing approaches. Alex Schultz, CMO and VP of Analytics at Meta, explains how AI-powered search and chat experiences will reshape digital advertising strategies. He discusses AI engine optimization as the new SEO, the competitive landscape between Google's Gemini and OpenAI's ChatGPT, and Meta's positioning through AI glasses and voice interfaces that integrate real-world context with search capabilities.

Episode Chapters

  • 00:39: AI's Marketing Transformation

    Discussion of how AI features like Google's AI mode will fundamentally change marketing practices while core principles like incrementality and measurement remain constant.

  • 01:01: Search vs Chat Evolution

    Analysis of whether traditional search will be replaced by chat experiences and how this shift might affect search marketing monetization models.

  • 01:30: Google's Gemini Impact

    Examination of how Google's Gemini is increasing user search volume and engagement while disrupting platforms like Stack Overflow through AI-powered interactions.

  • 02:39: AI Engine Optimization

    Exploration of how AI engine optimization will become the new SEO, requiring marketers to understand how AI systems crawl, rank, and source data.

  • 03:00: Future Search Landscape

    Speculation on whether Google or OpenAI will dominate the evolving search market and how the overall search ecosystem might expand.

  • 03:47: Meta's AI Strategy

    Overview of Meta's positioning in the AI landscape through wearable technology, voice interfaces, and chat experiences with over a billion users engaging with Meta AI.

  • 04:47: AI-Powered Content Ranking

    Discussion of how modern AI systems enable the shift from followed to unfollowed content across social platforms like Instagram Reels and Facebook Reels.

  • 05:20: AI-Generated Content Future

    Consideration of how AI-generated content will impact social media platforms and the uncertainty surrounding this emerging trend.

Episode Summary

  • How AI Features Like Google's AI Mode Will Transform Marketing Strategy

    # n

    Introduction

    # Alex Schultz, CMO and VP of Analytics at Meta, brings a unique perspective on the future of marketing in an AI-driven world. With responsibility for global marketing and analytics across Meta's 3.4 billion daily users, Schultz has witnessed firsthand how AI is reshaping both consumer behavior and marketing strategies. His insights reveal a fundamental shift in how marketers need to think about search, content discovery, and customer engagement as AI features become increasingly integrated into everyday digital experiences.#n#n1

    The Evolution from Search to AI-Powered Discovery

    # The traditional search marketing playbook is being rewritten as AI features like Google's Gemini transform how people find information. Schultz observes that "when people are interacting with Gemini, they seem to be actually increasing their search volume, increasing their engagement." This counterintuitive finding suggests that AI isn't replacing search—it's expanding it into new formats and behaviors that marketers must understand and optimize for.#n#n1 The disruption is already visible in specific verticals. Stack Overflow, once the go-to resource for technical questions, has been "completely disrupted by ChatGPT and Gemini," according to Schultz. This shift signals a broader transformation where AI-powered interfaces become the primary way people access information, forcing marketers to rethink their organic search strategies entirely.#n#n1

    From SEO to AI Engine Optimization

    # As search evolves, so must optimization strategies. Schultz introduces the concept of AI engine optimization as the natural evolution of SEO. While the fundamental principles remain similar—understanding how systems crawl, rank, and retrieve information—the execution will be dramatically different. Marketers need to consider how their content appears not just in traditional search results, but in conversational AI responses and chat interfaces.#n#n1

    The Battle for the Future of Discovery

    # Schultz outlines two potential futures for how people will discover information and products. In one scenario, Google successfully transitions to an AI-first model where "you are still typing things into a box on Google" but receiving instant answers or even having AI agents complete purchases on your behalf. This world maintains the advertising-supported model that marketers know well.#n#n1 The alternative future sees companies like OpenAI wi ing the discovery battle through paid, subscription-based chat interfaces. In this scenario, traditional advertising disappears, replaced by a token-based system where users pay for AI interactions. Schultz believes the reality will be "a blend of the two," creating a more complex but potentially larger overall market for discovery and engagement.#n#n1

    Meta's Multi-Angle AI Strategy

    # Meta isn't sitting on the sidelines of this transformation. With over a billion people already chatting with Meta AI, the company is pursuing multiple AI integration strategies. Their AI glasses represent the cutting edge of wearable technology, offering voice-activated assistance that can incorporate visual context from the user's environment. This approach positions Meta to compete in the voice interface market while maintaining its strength in social discovery.#n#n1 Perhaps more significantly, Meta has already transformed its core platforms through AI. The shift from followed content to AI-ranked unfollowed content on Instagram Reels and Facebook has fundamentally changed how content reaches audiences. This transition "could not have happened without modern AI," demonstrating how AI is already reshaping content distribution and discovery at scale.#n#n1

    Preparing for an AI-Generated Content World

    # The emergence of AI-generated content presents both opportunities and challenges for marketers. Schultz acknowledges the uncertainty around "what happens to social media in an AI-generated content world," but emphasizes that ignoring this trend isn't an option. Marketers must prepare for a landscape where AI creates content, distributes it, and helps users discover it—all while maintaining authenticity and value for their audiences.#n#n1

    Key Takeaways for Marketing Leaders

    # The AI transformation of marketing requires a fundamental shift in strategy while maintaining core principles. Incrementality and measurement remain crucial, but the cha els, formats, and optimization techniques are evolving rapidly. Marketers should focus on understanding how AI systems rank and present information, preparing for both ad-supported and subscription-based discovery models, and developing strategies that work across voice, chat, and visual AI interfaces. Most importantly, as Schultz notes, "we're definitely still in the first i ing of the game," meaning the biggest changes and opportunities are still ahead.#n#n1

Up Next: