AI Advertising's New Frontier
- Sportsman Creative
- May 06, 2025
Trust is the currency of the internet. And as Google expands AdSense into AI chatbots, that currency just became more valuable than ever.
When I first heard about Google integrating ads into third-party AI chatbots like iAsk and Liner, I wasn't surprised. Google is always going to try to stay ahead of the curve and protect their reputation from falling behind. They don't want anyone beating them to anything. They look at themselves as the pioneers of digital search, and they have the budget and resources to stay at the peak of new technology.
But what does this mean for businesses that have built their entire digital strategy around traditional search? Is this the beginning of the end for SEO as we know it? I don't think so.
Evolution, Not Revolution
Traditional search behavior isn't going anywhere for a very long time, if ever. We have to keep in mind that there are generations still just learning how to Google something. They certainly aren't going to advance as quickly as the technology does.
And while younger generations will move forward with the technology, I expect that Google will tie AI chat to traditional search formats to keep all of their programs and ads relevant. What I'm getting at is we should begin adding these new marketing strategies into our rolodex, but we certainly shouldn't do away with strategies we've previously implemented.
How many times have we heard "SEO is dead!" And yet, SEO is far from dead. It's going to be around a long time, and so will all of the other traditional marketing strategies that businesses are currently using. From SEO to social media, to email, text and phone campaigns, each share a sliver of the market and each are still very alive.
More Bang for Your Buck
As Google implements these new avenues, they'll be showing the same ads they currently do on their search engines, but likely to a broader audience. Now your Google ad spend will likely be getting more bang for your buck in that it will be shown to new streams of searchers in new places, while still being shown to the audiences we've been used to seeing our ads.
But why is Google keeping Gemini ad-free while monetizing third-party chatbots? Simple strategy. Google has some brilliant minds working together behind everything that they do. Why practice on their own name and reputation?
What we're seeing is them using other AI chatbots to get their research and development dialed in, but we will inevitably see the refined version of those ads roll out into their own chat in the very near future.
Regulatory Realities
While I'm not a legal expert, the recent antitrust rulings signal a shift in how regulators are viewing big tech dominance, especially when it comes to gatekeeping information and monetizing user attention. With traditional search, Google essentially built an empire on ad revenue tied to page rankings, often favoring their own services or ad-heavy results. But with AI chatbots, the playing field is different.
Instead of showing ten blue links, AI interfaces offer direct answers, which means Google can't monetize in quite the same way without it being even more obvious or intrusive. I think regulatory scrutiny will make it harder for them to quietly prioritize their own products or sponsored content in these AI responses.
They'll probably need to be more transparent, and that could open doors for smaller players, especially those offering niche or local expertise, to compete more fairly in these new spaces.
From our standpoint, this shift is good news. It could level the visibility playing field online, favoring genuinely helpful, well-structured content over who has the deepest pockets. And that's the kind of environment we're built to help businesses succeed in.
The Ethics of Hyper-Personalization
Hyper-personalization is powerful, but it works two ways. On one hand, it lets businesses connect with the right audience in a more meaningful way. But on the other, it raises real ethical concerns around privacy, manipulation, and even fairness in visibility.
As AI chatbots begin tailoring answers based on user behavior, demographics, or past searches, there's a risk that people only see what algorithms think they want, not necessarily what's most accurate or valuable. That creates a sort of echo chamber, which can be especially dangerous when those "personalized" responses are tied to monetized incentives.
For small businesses, the opportunity is huge, but it has to be handled with integrity. We should prioritize helpful, honest content that builds trust, rather than trying to game the system. And as AI tools evolve, I think transparency will become the real differentiator, not just who can personalize the fastest, but who can do it ethically and responsibly. At least I hope that's the case!
Finding the Sweet Spot
That tension between user experience and monetization has always existed, but AI interfaces bring it into sharper focus. With traditional search, Google could afford to stack ads above the fold because users still had the option to scroll and choose. But with AI-generated answers, especially in chat formats, there's usually one response, and that makes every piece of real estate much more sensitive.
Google being cautious with its own products while still monetizing others tells us they know users are watching closely. If AI responses start feeling biased, sales-driven, or manipulative, people lose trust, and once trust is gone, the whole experience falls apart.
So yes, there is a sweet spot, and I think it comes down to value-first content. Businesses need to show up in AI-driven spaces with genuinely helpful, relevant information. If your content earns visibility because it's clear, accurate, and solves a problem, that's the win. Monetization shouldn't feel like a detour, it should feel like a natural extension of the user's intent.
That's exactly the mindset we should bring to strategy: lead with value, build trust, and let conversions follow. It's a longer game, but it's the one that lasts.
From Transactional to Relational
The shift toward emotionally intelligent AI is a game-changer. Traditional search is transactional. You type in a need, get a list of options, and make a choice. But conversational AI has the potential to become relational. It can understand tone, intent, even frustration or excitement, and respond in a way that feels more human. That's a massive opportunity for brands to connect in a deeper, more authentic way.
For businesses, it means moving beyond just being found, now it's about being understood. If your brand voice is clear, empathetic, and helpful, AI can actually carry that tone forward when engaging users. That opens the door to real brand-building moments, even in automated interactions.
Imagine a local business showing up not just with the right answer, but in a way that feels genuinely encouraging or personal. That sticks with people.
I see this as the next evolution of digital trust. Businesses that stay focused on clarity, consistency, and human-centered messaging will stand out, not by shouting louder, but by being more real. The brands that feel most human will win in the age of AI.
Practical Steps for Small Businesses
Most small business owners don't have the time, resources, or team to reinvent their marketing strategy every time tech shifts. But the good news is, adapting to AI doesn't require a Google-sized budget, just a strategy rooted in clarity and authenticity.
The first step I recommend is to get crystal clear on your core messaging. What do you solve? Who do you help? Why should someone trust you? AI tools, whether they're search-based or chat-based, are looking for structured, helpful, relevant content. So having strong, well-organized website pages that answer common questions and speak in your brand voice is more important than ever.
Next, start building content that sounds human. Blog posts, FAQs, even short service descriptions, these are all opportunities to show up in AI-generated responses if they're helpful and well-written. You don't have to outspend your competitors, you just have to out-help them.
And finally, lean into reviews and reputation. As AI tools get smarter, they'll pull from real feedback to gauge credibility. So encourage happy customers to share their experiences, that social proof carries unmeasurable weight in this new paradigm.
Rethinking Content Strategy
Messaging for conversational AI is a bit different than traditional SEO, and it requires a mindset shift. In traditional search, you're writing for algorithms that scan for keyword matches. But with conversational AI, you're writing for context and clarity. The AI is trying to understand intent, not just match exact phrases.
That means businesses need to focus less on stuffing in keywords and more on answering real questions the way a human would ask them. Instead of "best plumber Springfield MO," think, "How do I know if I need a new water heater?" or "What's the difference between a tankless and traditional system?"
So yes, keywords still matter, but how they're framed matters more. Structure content in a way that mimics natural dialogue: use headings that are phrased as questions, provide clear, conversational answers, and include helpful context. This makes it easier for AI to pull your content into responses when users ask for help, not just when they search.
It's also a good idea to create content that reflects your tone and values. AI is increasingly looking for consistency in brand voice across platforms, so if your content sounds trustworthy and personal, that can set you apart.
Risks on the Horizon
There are definitely some risks and unintended consequences on the horizon, especially for small businesses trying to compete in an increasingly automated, pay-to-play ecosystem.
One big risk is visibility shrinkage. As Google and others move toward AI-generated answers, there's less space for organic listings. If the AI summarizes everything, users might never scroll down or click through to individual websites. That puts pressure on small businesses to show up in those limited answer spots, or risk being buried.
Another pitfall is over-reliance on platforms you don't control. As AI tightens its grip on how content is surfaced, businesses that rely solely on Google or social media to reach customers could be left vulnerable. One algorithm tweak, one policy change, and suddenly, your reach drops overnight. This is why your marketing and advertising budget needs to be diversified across multiple sources, not putting all your eggs in one basket.
There's also the risk of misrepresentation or content misuse. AI can summarize or paraphrase content incorrectly, especially if it pulls from multiple sources. If your brand voice or services are misunderstood by the AI, it could impact perception and trust.
So what should small businesses do? Focus on owning your channels, your website, your email list, your direct customer relationships. Continue investing in helpful, brand-aligned content that builds trust and authority. And keep an eye on how your business is being represented in AI spaces, from Google's Search Generative Experience (SGE) to chatbot integrations.
I coach my clients to think long-term: use these tools, but don't depend on them. Stay human, stay consistent, and always know what makes your business irreplaceable, because that's something no algorithm can duplicate.
The Trust Factor
Trust is the currency of the internet, and it's even more valuable in AI-driven environments. When users start getting answers from a chatbot rather than browsing a list of sources, they're placing a lot of trust in the platform to deliver unbiased, accurate information. The moment ads start blending too seamlessly into those AI responses, that trust can erode quickly.
We've already seen this tension in traditional search: people get frustrated when they have to scroll past a wall of ads to find a real answer. Now imagine that happening in a conversation where the ad sounds like advice. That's a slippery slope, and if platforms aren't transparent, users will tune out, or worse, feel manipulated.
For businesses, the key to maintaining authenticity in these formats is radical clarity and consistency. Make sure your brand voice is honest, helpful, and easy to recognize, so that when your content shows up in AI-powered responses, it reflects who you truly are. Also, continue to publish high-quality content on your own site, where you control the message and the experience.
If your content earns visibility because it genuinely helps, not just because it's been promoted, that builds long-term trust. The kind where you're not just visible, you're believable.
As Google continues expanding its advertising reach into AI chatbots, the businesses that will thrive aren't necessarily those with the biggest budgets, but those who understand that in a world of artificial intelligence, genuine humanity becomes the ultimate competitive advantage.
These changes are big, but the right strategy can turn uncertainty into opportunity. If you're not sure where to start, let’s talk. I offer no-pressure strategy sessions to help small businesses gain direction and clarity with their online presence.
