When Microsoft announced that Bing would incorporate OpenAI’s technology, businesses expressed concerns about a potential decline in web traffic. What about the years they invested in Search Engine Optimization (SEO)? Google’s entry into the arena with its Search Generative Experience (SGE) heightened these worries. However, a new study of the AI-first search engine Perplexity indicates that these fears may be overstated.
Jim Yu, CEO of the enterprise SEO platform BrightEdge, stated, “It’s an exciting time for AI and search.” He emphasized that while the search model has gradually evolved for decades, we are now witnessing a significant disruption due to new AI models.
BrightEdge analyzed queries from Perplexity to gauge its impact on search. Remarkably, the study revealed a 40% month-over-month increase in referral traffic from Perplexity to brand websites since January. Furthermore, 60% of its citations align with the top 10 organic Google results, indicating that Perplexity users receive answers comparable to those from traditional searches.
A Shift in Market Dynamics
Yu stresses the need for companies to continue investing in SEO, regardless of the AI influence. “If you rank well today, you’re off to a head start,” he asserts. However, rather than optimizing individual pages, companies should focus on broader topics where they can establish authority.
Google has dominated search for decades, but generative AI poses a challenge to its market share. Perplexity's referral traffic growth serves as evidence of this shift. “This is the first instance we've seen a competitor gain market share with such velocity.” While Google remains strong, emerging alternatives are gaining traction.
BrightEdge conducted a study across nine industries—healthcare, education, B2B tech, restaurants, travel, entertainment, insurance, finance, and retail e-commerce—to understand Perplexity’s influence. The research uncovered distinct differences between Google’s SGE and Perplexity, highlighting the content sources favored by each.
- In finance, Perplexity favors Yahoo, MarketWatch, and CNN.
- For healthcare, authoritative sites include the Mayo Clinic, Yelp for restaurants, Tripadvisor for travel, and Coursera for education.
- While both search engines reference Wikipedia and Amazon, Google prefers Quora and Consumer Reports for product reviews, whereas Perplexity often cites Reddit.
Some sources are obtained through partnerships, while others come from open web data. Yu suggests that AI engines must secure deals with online communities to access vital training data. For instance, Reddit recently secured a licensing deal with Google ahead of its IPO, while Yelp is partnering with Perplexity.
Perplexity's Emerging Advertising Strategy
BrightEdge's report follows Perplexity's announcement to feature branded ads within its search results, allowing advertisers to influence subsequent queries. While this may appear contradictory to its claim of providing an ad-free search experience, Perplexity’s CBO Dmitry Shevelenko clarified that advertising has always been part of their business strategy.
Should this expand beyond native ads, Perplexity could resemble Google more closely, potentially attracting more interest from digital marketers.
Strategic Insights for Marketers
The growth of Perplexity within its first year suggests that AI will not directly diminish web traffic or prompt businesses to abandon Google marketing. As SGE exits beta later this year, Google's market leadership is expected to remain intact. “Never underestimate Google,” Yu insists. “[It’s] deeply entrenched in referral traffic.”
BrightEdge provides the following strategic insights:
1. Identify areas of expertise where your content can excel. Shift focus from optimizing for a few keywords to optimizing for conversational topics that encourage follow-up questions.
2. Ensure your site utilizes structured information. Employ metadata to inform AI about your content's origin, enhancing citation accuracy.
3. Break down organizational silos. Yu emphasizes the need for cross-department collaboration to optimize for AI-driven search.
This report does not claim that Perplexity is superior to Google. Instead, Yu encourages businesses to prepare for a diverse search landscape where multiple AI engines coexist. “AI-first engines are gaining momentum and carving out specialized areas,” he warns, urging marketers to navigate various platforms to secure their revenue. As AI search continues to evolve, tracking trends and query patterns will be essential for success in this rapidly changing environment.
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