AI Monetization – Keywords vs. Conversation

In 2022, Google’s revenue included $162B (57% of total) from search advertising. As users use Google to search for a product or service, companies pay Google to advertise their offerings in those search results. Keywords and search history (tracking cookies) improve the targeting of these ads to increase the effectiveness and click-through rates of these advertisements.

Last week, I asked ChatGPT for a book recommendation. I had a multi-paragraph conversation with the AI where I shared that I enjoy Science Fiction with low violence (since I read before bed), a happy ending, witty humor, imaginative, and a list of books I’ve enjoyed previously such as Project Hail Mary. At the end of the conversation, it provided a fantastic list of recommendations.

What struck me is how much context and insight ChatGPT now has into my reading preferences. Imagine how rich a profile AI will build for each user when we leverage AI to self-diagnose medically, plan vacations, discover hobbies, etc.

Google makes billions from the limited profiles it can build from our keywords and search history. The opportunity is much greater for Al to monetize using a much richer profile based on conversations.