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Generative AI 101: Impact of Google’s SGE on Search Engines

Published July 12, 2024
/ Updated July 29, 2024

According to 2024 State of SEO report by the Search Engine Journal, 72.4% of businesses expect little to significant benefits from generative AI. 9.6% are undecided, and 18% remain cautious about potential negative impacts.

Generative AI is commonly associated with content creation tools like ChatGPT and DALL-E. But Google has recently added this intelligence to its functionalities through Search Generative Experience. This development will affect how businesses use different marketing tactics like paid search and content marketing.

Read on to learn what SGE is, the impact of Google’s SGE, and the ensuing challenges and advantages it presents.

What is SGE?

Introduced in Beta Mode in 2023, Search Generative Experience or AI Overviews enhances Google search results by analyzing contextual information. Google officially announced and rolled it out to US users at their I/O developer conference in the second week of May 2024.

SGE presents a shift in search engine technology. Think featured snippets, but more thorough and targeted to your queries. It generates quick, on-point answers below the sponsored content section and above the standard search results.

Google SGE doesn’t simply rely on basic keyword matches; it also understands and addresses the underlying intent behind your search. Liz Reid, Head of Google Search, explained:

“Now, with generative AI, Search can do more than you ever imagined. So you can ask whatever’s on your mind or whatever you need to get done—from researching to planning to brainstorming—and Google will take care of the legwork.”

Therefore, you don’t have to click through multiple pages to find what you need. Say you’re looking at “how to optimize content marketing strategies for small businesses.” Pre-SGE, Google would only rank sites relevant to the specified keywords and let you click what’s most relevant to your need.

Today, you can now see actionable tips upfront without clicking on various blog posts.

Screenshot of a Google search for 'how to optimize content marketing strategies for small businesses.' The search results display AI-generated tips with a note at the top stating 'Generative AI is experimental.'

Depending on your query, you’ll get suggested websites or prompts to ask follow-up questions. In the example, you could follow up by asking for AI marketing tools to help with your content strategy. AI would pick up where you left off, so you won’t have to restart your search when digging deeper into this topic.

Search Generative Experience: 5 Core Functionalities

To fully grasp and understand SGE’s potential, you’ll have to know its f5 core functionalities:

  1. Personalized Recommendations. SGE learns from user interactions and adapts its recommendations, thus simplifying the search process. You can ask complex questions, plan, and even export data to Docs or Gmail seamlessly.
  2. Semantic Understanding. SGE analyzes the language’s semantics rather than relying on specific keywords. It makes searching more intuitive because users can phrase their searches like a conversation.
  3. Multimodal Search. To cater to all needs and preferences, SGE works with different search modes, including text, voice, image, and video search. For example: video search lets you film the problem and find solutions without stressing over the right words.
  4. Cross-Platform Consistency. Users can access SGE from smartphones, tablets, laptops, and desktops and expect consistent results.
  5. Localized Results. SGE delivers personalized and relevant information about local businesses, services, and events based on the user’s location. For instance, you can compare vacation spots and follow up with questions like, “Are there any outdoor activities nearby?” or “Can you suggest a family-friendly restaurant in the area?”

These features help redefine the user’s search experience. But how do its impacts on search engines influence your brand’s SEO content strategy over time?

Understanding the Impact of Google’s SGE on Search Engines

Google SGE has stirred up a mix of reactions since its initial release. Some users laud its advanced capabilities to give more intuitive search results. Others have reservations because of how it could affect SEO strategies, organic traffic, and advertising opportunities.

Let’s understand the impact of Google’s SGE to help you find your footing and optimize your visibility despite these changes.

Zero-Click Search

Zero-click search is when users get their answers immediately through featured snippets and knowledge panels above-fold. It’s not a recent concept. But SGE makes it more difficult to get click-throughs when users can bypass the websites and access information directly on the Search Engine Result Page (SERP).

As per Search Engine Journal’s report, Google experiments with more SERP features that result in zero-click searches. It uses generative AI to provide content directly in the SERP with Google Labs.

Tip: Getting into Google’s Knowledge Graph in such a case can help optimize your AI content marketing for SGE. To do so, update your Google My Business profile, publish high-quality content, and implement structured data markup on your website.

Organic Traffic

Authoritas published a report regarding the impact of Google’s SGE on the prominence of brand-related keywords. The sample keywords include brand names, product models, and common nouns like “app”, “international”, and “upcoming releases.” 62% of generative links in the dataset analyzed weren’t from the top 10 organic rankings.

Thus, websites have more chances to get noticed, even if they’re not at the top of the traditional search results. Generative AI expands the diversity of information available to users. It’s a promising yet challenging development for marketers.

On the flip side, Authoritas’ SGE ecommerce analysis found that the top organic result drops 1,500 pixels down the page when users activate the SGE trigger (e.g., “Show More”). Normally, the top organic result would be visible without scrolling. But with the SGE trigger activated, that top result is pushed down by 1.5 times your visible viewport on a desktop.

Tip: SGE is still in its experimental phase. So, for now, your best course of action is to monitor industry news and be ready to tweak your SEO tactics.

Paid Search

As with organic search results, ad clicks will drop once users find answers in AI Overviews. Lower click-through rates mean fewer sales or leads, driving up the cost per click.

This can be a cause of alarm for many organizations. But don’t feel bad just yet. Google VP and GM for Google Ads Vidhya Srinivasan reassures everyone that the project is evolving. Search ads will continue to appear in dedicated ad slots, allowing advertisers to reach potential customers. Google will test and refine the ad experience as it gathers more insights.

Tip: SGE introduces complexity in organizing and presenting information, requiring ad formats and placements to adapt. Advertisers should consider experimenting with different ad formats and strategies to see what works best in this new environment.

Google SGE’s Potential Challenges and Solutions

Tech advancements introduce new complexities into existing systems, so limitations are inevitable. Here’s a rundown of challenges that require further attention to make the most out of SGE.

Not-So-SEO-Friendly

21% of SEO professionals agree generative AI is the top SEO performance disruptor in 2024. It’s trickier to get seen, yes, but it’s not all doom and gloom. Focus on creating top-notch content that speaks to what users are searching for. Understand their pain points, questions, and interests, then tailor your content to address those.

Complex Queries

SGE relies on predefined patterns and data to generate responses, hence it struggles with vague or complex queries. You can’t directly influence how users interact with SGE, but you can incorporate generative AI content examples in your strategy to better match user queries.

Unreliable Sources

Google trains its algorithms to prioritize authoritative and trustworthy sources to write AI-enabled responses.

But it can sometimes pull information from unverified sources, as seen in this tweet by SEO consultant Gagan Ghotra. He shares a screenshot of a Reddit user objecting to their comment being referenced by SGE, exposing potential data inaccuracies in AI Overviews.

If done properly, businesses can leverage this visibility by following Google Business Profile Product and SEO Expert Sherry Bonelli’s advice. She suggests staying active on platforms like Quora and Reddit to maintain relevance in AI searches.

That’s how you work your way around generative AI. Double down on SEO basics, stay adaptable, and keep your focus on the SERP.

Comparative Analysis with Traditional Search Engines

From SEO to Google Ads and Analytics, businesses have long relied on Google’s pre-SGE search engine to implement various marketing strategies. These platforms have provided a familiar interface and functionality, facilitating easier access to target audiences.

Despite these benefits, standing out among competitors on crowded search results pages had been difficult for many businesses. Success often depends on competitive keyword optimization, which can be challenging (not to mention expensive) to maintain.

So, the question is: Is SGE the upgrade that’ll turn everything around, or will it throw everything off track?

So far, what we know is that SGE employs an intelligent system to analyze search queries and webpage content, generating helpful summaries. As users engage with search results, the system updates summaries to match their evolving understanding.

This context-aware approach opens doors for more brands to be featured in SGE summaries, attracting more organic traffic and prospects. However, those left out of these snippets may experience a drop in visibility.

Industry Reactions and Adaptations

SEO leaders, marketers, and entrepreneurs are testing the waters with Google SGE. Observe their experiences to see how you can optimize your strategies.

Search and Social Overlapping

Google’s information sourcing now incorporates social media platforms. In a post made by On Empty Roads, an Endurance Sports Brand Marketer, AI Overviews showed a TikTok video in its SGE-featured snippets. The takeaway? Use relevant keywords and hashtags in your social media captions and descriptions to boost content discoverability.

Lower Organic Visibility

Strategic SEO Consultant Eli Schwartz shared on LinkedIn that Google favors longer featured snippets over AI overviews, pushing traditional organic results down the page.

Small businesses with limited resources for paid advertising may be hit harder because they rely primarily on organic traffic.

Local Search Rankings

SEO writer and podcaster Garrett Sussman posted a screenshot of his search query “best Chinese food Arlington, VA” on Twitter.

AI Overviews sourced all the suggested restaurants from Reddit. It’s proof of how word-of-mouth marketing can increase your chances of being brought up in AI Overviews.

Every day there’s news on how businesses respond to Google SGE. Pay attention to what proves effective and what falls short in this changing search environment.

The Future of Search is Here

Google’s Search Generative Experience promises more intuitive and context-aware search results. But we don’t have the exact formula yet on how it prioritizes and ranks content.

What we know is that SGE’s long-term implications for search engines and online content discovery point towards a more dynamic and user-centric search experience. Now is the best time to observe SGE developments and start investing in user-centric AI marketing strategies.

If you want to incorporate this new Google search functionality into your marketing strategy, use CoSchedule’s presentation deck and strategy document templates to lay out your plan methodically.