How AI is Reshaping Search – And Why Advertisers Must Rethink Their Strategy
The way consumers search for information is undergoing a seismic shift, driven by the rapid evolution of AI-powered search and recommendation engines. As users turn to AI-generated answers, conversational search, and social commerce, traditional search advertising models are losing their dominance. For advertisers, this shift presents both challenges and opportunities—but only if they act fast.
AI is changing where consumers search
AI-powered search engines and chatbots like ChatGPT, Perplexity, and Google’s AI-enhanced search are not just changing how people search, but where they search. Rather than scrolling through pages of results, users receive instant, AI-generated answers, dramatically reducing traditional search clicks. This isn’t just a small dip; it’s a fundamental disruption of the search paradigm.
Similarly, TikTok, Instagram, and Amazon have become powerhouses of discovery, especially among Gen Z and Millennials. Users looking for travel tips, product recommendations, and authentic local experiences overwhelmingly turn to short-form videos, AI-curated content feeds, and visual search, bypassing traditional search engines altogether.
For advertisers, this is a critical inflection point: ad dollars that historically followed search intent must now be intelligently reallocated to where consumers are actively, visually, and conversationally engaged.
The decline of traditional search advertising
The fundamental shift in how consumers search means search engines are no longer the gatekeepers they once were. With AI summarizing answers at the top of results, fewer users click on organic or paid search links. This trend is accelerating, creating a major challenge for advertisers reliant on traditional PPC (pay-per-click) models.
Furthermore, AI-generated search results diminish the effectiveness of traditional SEO, making it exponentially harder for brands to organically reach consumers. Companies clinging to old strategies will inevitably face rising costs, diminishing returns, and ultimately, irrelevance in the eyes of their target audience.
The Transaction Moment™: Why the smart money is moving to Rokt
While traditional search advertising declines, Rokt offers a powerful alternative: advertising within the high-intent Transaction Moment™ in first-party ecommerce environments. Rather than trying to capture attention in a cluttered search landscape, Rokt enables brands to engage with consumers at the moment they are already shopping and transacting online. This is the key difference. It’s not just about where consumers are, but when they are most receptive.
Here’s why advertisers should be shifting budgets to Rokt:
First-party data advantage
Unlike traditional search advertising, which relies on third-party cookies and unpredictable algorithms, Rokt leverages high-quality first-party data from ecommerce transactions. This ensures more precise targeting, personalization, and ultimately higher conversion rates.
Reaching consumers in the right mindset
With Rokt, brands appear in high-engagement moments—right when consumers are making purchase decisions, not when they’re passively browsing. This means a better chance of conversion and higher ROI compared to search ads. These aren’t just clicks; they’re clicks from customers with demonstrated purchase intent , eager to engage with relevant offers.
AI-proof advertising
AI-generated search results may disrupt traditional ad placements, but Rokt’s model is built around direct ecommerce integration, making it resilient to changes in search behavior. Within the Rokt Network’s trusted checkout experiences, users complete an average of 2.1 transactions per month globally and in the U.S., offering advertisers premium visibility at the point of purchase. With audience reach growing 40%+ year over year, advanced real-time data analysis ensures brands connect with the most relevant shoppers, maximizing campaign effectiveness.
Optimized CPC model
Rokt’s Cost-Per-Click (CPC) model ensures advertisers only pay for clicks, not impressions. The CPC is dynamic and adjusts based on predicted engagement and conversion rates, optimizing ad spend. Rokt further enhances this with algorithmic bidding and Smart Tools, leveraging the Rokt Brain—our proprietary AI— to predict conversion rates and tailor bids to each user’s unique context, maximizing performance and ROI without the rising costs associated with traditional search advertising.
The future of advertising is transactional, not just search-based
AI is forcing advertisers to rethink their approach. Search is no longer the default starting point for consumer discovery, and traditional search advertising is losing its effectiveness. The brands that succeed will be those that shift their budgets toward high-intent environments where consumers are actively engaged —the Transaction Moment™.
With Rokt, advertisers can bypass the challenges of AI-disrupted search and instead tap into the most valuable moments in e-commerce: when consumers are ready to buy. Rokt reaches over 400 million unique active users globally per year.
Ready to see the Rokt difference? Contact us today.