The Impact of AI on Search and Local SEM Explained

Local businesses depend on organic and paid search to drive traffic to their websites and physical locations. These brands know that search engines are where most customers start the buying process, and they need to be visible to capture this buying intent. Search is changing with the introduction of AI. So, what’s the impact on SEO (search engine optimization) and local SEM (search engine marketing)?

A high CTR (click-through rate) usually indicates strong campaign performance. Your advertisers would be happy to see all the impressions leading to clicks. If that were the end of the story, it would have the happiest ending, but it’s not. Sometimes CTR can be high, but conversions are low.

So, why does this happen, and how can you provide insights to advertisers to boost conversions?

The Importance of Local SEO and SEM

Local searches account for over 22% of website traffic, and at least 21% of consumers use search daily to find businesses in their area. In addition to appearing organically and optimizing their Google Business Profile to appear on the Google Map Pack, these companies also spend on SEM. The total amount for this tactic will hit $190 billion in 2024!

It’s also a good return for brands, generating $2 for every $1 invested. The value of local SEM won’t diminish, but AI in search is affecting these marketing tactics.

AI’s Introduction Changes Search

Searching online was once all text. Then, voice search became an option with the rise of digital assistants. Image searching is now an option too, with Circle to Search. All these things changed the dynamics.

AI brings its own nuances. The type of AI applied is generative AI (GenAI), which has been trained to understand human language. Instead of search results that are based solely on keywords, GenAI could deliver more relevant results. The emphasis is on “could” because AI, no matter its level of sophistication, doesn’t fully comprehend human sentiment or intent.

Google and other search engines are embracing AI at scale, requiring local businesses to adapt their SEO and SEM strategies. Let’s look at the potential ways it will change search.

Searching Could Become More Conversational

We already saw this shift with voice search. People asked questions and used more conversational patterns to search with their voices. AI could take this trend further as consumers continue to be more specific. It may not be a question but a search with more details. Instead of typing “plumbers near me,” they may input “affordable insured plumbers to unclog my sink today.”

Searchers really spur the trends that evolve SEO. Businesses will need to start optimizing for more long-tail keywords to be a top result.

Customer Reviews Influence AI-Powered Search Results

You’ve likely spoken with advertisers about the importance of reviews; they convey trust and reliability. Now, they’ll also play a role in search. Google will scan reviews to answer more conversational queries. Thus, they’re even more valuable for local businesses.

Expertise and Practical Content Matter in AI Search

Google has always given credence to content that is helpful and showcases deep expertise. AI search actually makes it more essential. Since searches will be long-tail and more specific, content on a company’s website must deliver this to achieve higher rankings. When discussing this with customers, suggest content like:

FAQs
Case studies and success stories
Product and service explanations that aren’t full of fluff
Blog posts that address their customers’ common questions and challenges

AI and Local SEM

Local SEM will also feel the influence of AI. It’s not the same as SEO since these ads have specific parameters for copy and creative. However, the content created for ads will need to account for the trend of conversational searching.

Most SEM ads are direct and highlight benefits and ratings while delivering a relevant offer. Those remain best practices, but there’s an opportunity to bring some personalization to the message. Going back to the plumber search terms, an ad for a local company could use phrases like:

Affordable plumbers at your house today to fix clogged pipes
Professional plumbers available today to unclog your sink

Searchers may respond better to this conversational tone. Experimenting with this and tracking results can help continuously optimize local SEM campaigns.

With the change in content also comes the need to rethink keyword strategies. Broad match may be more effective in the AI era. That’s because broad match allows campaigns to align with these more descriptive and detailed searches.

Offering these insights to advertisers as they plan SEM campaigns demonstrates your knowledge of trends and how they shape advertising.