SEO
Insights to empower 2023 ecommerce strategies
30-second summary:
- Retailers should use a data-driven approach to develop their marketing strategies to succeed in today’s volatile economy
- Current tumultuous economic conditions are disrupting the retail landscape by forcing store closures and forecasting bankruptcies
- Marketing intelligence for pricing, advertising, and promotions is critical in gaining an edge against competitors
- Managing director at GrowByData, Prasanna Dhungel, shares ecommerce strategy tips for 2023 to attract, convert and retain customers
The economy in 2020 was in a volatile state, primarily due to the pandemic. In November 2020, despite rising Covid cases, retailers were providing SALE offers on 13% of ads and special promotions on only 7% of ads. On the other hand, consumer spending growth was recorded at 9%.
Fast-forward to 2021 – The economy was recovering from COVID that was evident in consumer spending growth of 13.5%. With a slightly eased supply chain and better economic conditions, November holidays in 2021 saw 14% growth in special offers, which had grown twice as much compared to 2020. Furthermore, SALE offers were seen on 12% of ads which was slightly lower than the previous year.
However, in 2022, the Russia-Ukraine war coupled with unfathomable COVID rise in manufacturing nation like China impacted the economic indicators once again. With rising inflation, consumer spending had fallen drastically to mere growth rate of 6%-8%. For this year’s November Holiday, 60% of consumers mentioned discounts and promotions playing a huge role in their purchasing decisions.
Surprisingly, during November 2022, there was a drop with only 8% focused on special promotion ads. However, SALE offer was in a rise visible in 15% of ads.
A similar trend was seen in average pricing in Google Shopping ads that is, turbulent economy was reflecting in lower average price in 2020 and 2022 compared to 2021 – when the economy was flourishing.
Heading into a deeper recession in 2023
As we enter 2023, we expect to continue heading into a recession.
According to a monthly survey conducted by Bloomberg, the likelihood of a US recession in 2023 jumped to a whopping 70% – as a series of Federal Reserve interest hikes drove fears of a stagnant economy. To make matters worse, a rise in US unemployment throughout the year has also been predicted to cause more pain in the labor market.
On the contrary, to remain competitive in the market, gross margin in retail is expected to go down. In this paradigm, pressure will rise on spending like advertising. Consumers will start scouting for cheaper products causing retailers and advertisers to provide low-priced products to win market share. Therefore, the road ahead for retailers is going to be bumpy. Per UBS analyst report, 50,000 store closures in the US is expected over the next 5 years. News of mega-stores like Bed Bath & Beyond potentially going to bankruptcy has emerged.
Based on our 2020 and 2022 economic analysis, retailers most likely will have unsold inventories to clear during the 2023 November Holidays. That said, consumers will see more SALE ads over special promotions, alongside noticing a drop in average pricing in shopping ads.
Tips for 2023 ecommerce strategies
Consumer spending, which has been decreasing in the last 3 years, will most likely fall in 2023 as well. Discounts, Promotions, and cheaper prices are the only ways to attract customers to stretch their wallets.
Despite the bleak outlook, retailers utilizing marketing intelligence for their pricing, advertising, and promotions will most likely survive and gain an edge in 2023. Here are a few tips for retailers and advertisers to succeed in 2023 –
1. Optimize ecommerce trustworthiness factors to boost conversion
Trust plays an integral role in converting business. To ensure a high conversion rate, it is imperative to build a customer’s trust in your eCommerce ecosystem. It is fair to say that online shoppers are often reluctant to make a purchase due to uncertainty on an unfamiliar channel or brand or product. For an eCommerce business, gaining trust is crucial as customers are unable to physically see the product. Businesses must focus on optimizing trustworthiness as it will have tremendous impact in the conversion. That being said, trust is a psychological state that can be easily influenced.
Here are the ways to optimize your ecommerce trustworthiness.
- Showcase customer reviews and ratings, use trust badges and seals, offer secure payment options, display contact information prominently, maintain a strong presence on social media – all these attributes gain trust from your customers. Additionally, have good shipping & return policies, and enhance your website’s user experience. This will reassure your company’s transparency and guarantee customer satisfaction. All these should lead to increased customer loyalty and sales. For instance, Google rewards the “trusted store” badge to stores offering fast shipping, good return policies, a high-quality website, and good ratings – all the factors that signify a good customer experience.
- Shopping ad extensions is another great way to improve the trustworthiness and effectiveness of your shopping ads. Ad extensions allows you to provide additional information about your product/business in your ad, which will help increase the credibility of your ad and the likelihood of users clicking on it. For example, you can use the “product review & ratings” extension to display the average rating your business has received from customers. This can help potential customers feel more secure during their purchase journey.
- Offer competitive shipping and return policies to add a layer of trust and credibility for your brand. Customers generally prefer to shop with brands that offer free shipping or expedited shipping options. A hassle-free return policy will not only help build trust with customers but also create a good brand image since you have taken that extra step to ensure the customer’s satisfaction. For example: if you offer a 10-day return policy while your competitor is offering a 3-day return, customers are more likely to choose your product vs your competition. Additionally, having a local presence in the market is also a plus point. Customers will know you exist in their market. Offer 24/7 customer helpline and chat for your customers to get feel like they can contact you easily.
- If you are a brand, you should have a MAP policy in the US and Canada. Having a MAP and channel policy helps ensure your brand’s product’s price and channel consistency across the digital shelves. You must clearly communicate your MAP policy to your retailers & partners and provide them with the necessary guidelines for selling your products. Setting up a MAP policy and ensuring its enforcement helps brand maintain their value and ultimately improves trust and credibility amongst resellers and ultimately shoppers.
2. Optimize ROAS by lowering advertising cost
Here are six ways to achieve this –
- Pursue Holistic Search Strategy to mobilize budget across SEO and SEM to dominate Google SERP. In 2022, our top Auto retailer client increased 20% revenue by redirecting ad spending from keywords where they were doing well in Organic.
- Improve your keyword quality score to boost impressions and CTR with lower CPC. We have noticed retailers not utilizing special offers during this adverse time. We humbly disagree with this strategy as it is imperative to offer discounts through special offers over dropping prices. This simple tactic can improve your ad quality and reduce your CPC.
- Optimize your product experience by focusing on product title, price, quality, color, description, promotions, reviews, etc. This will not only increase your chance of conversion but also help improve your keyword quality score.
- Ensure affiliate compliance to reduce revenue churn and better partner with your loyal affiliates.
- Monitor violations in your brand term that are inflating your CPC.
- Enforce MAP Compliance to avoid pricing wars reducing your margins and brand value.
3. Dynamic pricing optimization to maximize margin
To be on top of the game, retailers must have insights into current market pricing to ensure optimum pricing to beat competitors. The approach taken for dynamic pricing strategies to penetrate while maximizing margin from the market will be critical for growth.
4. Strategic promotional planning to attract consumers
Consumers will always be gazing for promotions. In this adverse economic situation, a strategic promotion plan will help optimize advertising and conversions.
Conclusion
As the pandemic-riddled period comes to an end, innovation becomes a key factor for survival in the volatile market of today. Furthermore, with a shift in the retail landscape consumer expectations and demands will be a leading force in 2023.
Retailers and advertisers must remain flexible, adaptive, and affordable to get an edge against competitors to maximize their market share. They should use a unified marketing intelligence solution that showcases them versus competition in the eyes of the shoppers on the digital shelves. We recommend retailers use a data-driven approach to developing their marketing strategies to improve their chances of success in 2023.
Prasanna Dhungel co-founded and runs GrowByData, which powers performance marketing for leading brands such as Crocs and top agencies like Merkle. GrowByData offers marketing intelligence for search, marketplace, and product management to win new revenue, boost marketing performance and manage brand compliance.
Prasanna also advises executives, board & investors on data strategy, growth, and product. He has advised leading firms such as Melinda & Bill Gates Foundation, Athena Health, and Apellis Pharma.
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SEO
Plot Up To Five Metrics At Once
Google has rolled out changes to Analytics, adding features to help you make more sense of your data.
The update brings several key improvements:
- You can now compare up to five different metrics side by side.
- A new tool automatically spots unusual trends in your data.
- A more detailed report on transactions gives a closer look at revenue.
- The acquisition reports now separate user and session data more clearly.
- It’s easier to understand what each report does with new descriptions.
Here’s an overview of these new features, why they matter, and how they might help improve your data analysis and decision-making.
▶ ️We’ve introduced plot rows in detailed reports. You can now visualize up to 5 rows of data directly within your detailed reports to measure their changes over time.
We’ve also launched these new report features:
🔎: Anomaly detection to flag unusual data fluctuations
📊:… pic.twitter.com/VDPXe2Q9wQ— Google Analytics (@googleanalytics) September 5, 2024
Plot Rows: Enhanced Data Visualization
The most prominent addition is the “Plot Rows” feature.
You can now visualize up to five rows of data simultaneously within your reports, allowing for quick comparisons and trend analysis.
This feature is accessible by selecting the desired rows and clicking the “Plot Rows” option.
Anomaly Detection: Spotting Unusual Patterns
Google Analytics has implemented an anomaly detection system to help you identify potential issues or opportunities.
This new tool automatically flags unusual data fluctuations, making it easier to spot unexpected traffic spikes, sudden drops, or other noteworthy trends.
Improved Report Navigation & Understanding
Google Analytics has added hover-over descriptions for report titles.
These brief explanations provide context and include links to more detailed information about each report’s purpose and metrics.
Key Event Marking In Events Report
The Events report allows you to mark significant events for easy reference.
This feature, accessed through a three-dot menu at the end of each event row, helps you prioritize and track important data points.
New Transactions Report For Revenue Insights
For ecommerce businesses, the new Transactions report offers granular insights into revenue streams.
This feature provides information about each transaction, utilizing the transaction_id parameter to give you a comprehensive view of sales data.
Scope Changes In Acquisition Reports
Google has refined its acquisition reports to offer more targeted metrics.
The User Acquisition report now includes user-related metrics such as Total Users, New Users, and Returning Users.
Meanwhile, the Traffic Acquisition report focuses on session-related metrics like Sessions, Engaged Sessions, and Sessions per Event.
What To Do Next
As you explore these new features, keep in mind:
- Familiarize yourself with the new Plot Rows function to make the most of comparative data analysis.
- Pay attention to the anomaly detection alerts, but always investigate the context behind flagged data points.
- Take advantage of the more detailed Transactions report to understand your revenue patterns better.
- Experiment with the refined acquisition reports to see which metrics are most valuable for your needs.
As with any new tool, there will likely be a learning curve as you incorporate these features into your workflow.
FAQ
What is the “Plot Rows” feature in Google Analytics?
The “Plot Rows” feature allows you to visualize up to five rows of data at the same time. This makes it easier to compare different metrics side by side within your reports, facilitating quick comparisons and trend analysis. To use this feature, select the desired rows and click the “Plot Rows” option.
How does the new anomaly detection system work in Google Analytics?
Google Analytics’ new anomaly detection system automatically flags unusual data patterns. This tool helps identify potential issues or opportunities by spotting unexpected traffic spikes, sudden drops, or other notable trends, making it easier for users to focus on significant data fluctuations.
What improvements have been made to the Transactions report in Google Analytics?
The enhanced Transactions report provides detailed insights into revenue for ecommerce businesses. It utilizes the transaction_id parameter to offer granular information about each transaction, helping businesses get a better understanding of their revenue streams.
Featured Image: Vladimka production/Shutterstock
SEO
Top 10 Affiliate Marketing Platforms To Maximize Sales In 2024
Affiliate marketing has been experiencing explosive growth in recent years, so it’s essential now more than ever for brands to run affiliate programs of their own.
It involves brands hiring affiliates to promote their products and services and rewarding them with a commission from every sale.
As such, affiliate marketing is an excellent low-cost and low-risk way for brands to drive sales and brand awareness without hiring an in-house advertising and marketing team of their own.
Affiliate marketing spending worldwide is estimated at around $14 billion in 2024 – and the industry is predicted to reach a worth of over $38 billion by 2031.
Affiliate Marketing And SEO
Affiliate marketing and search engine optimization (SEO) both share a common goal of attracting relevant and high-quality traffic to a site with the goal of increasing sales.
As such, both of these marketing activities shouldn’t be perceived as two separate, competing entities.
Instead, you should look at them as one and the same that work together in perfect harmony to increase website traffic and generate more revenue.
The most successful publishers in the affiliate marketing space combine the two to get the best of both worlds.
SEO affiliate marketing involves choosing the right products and affiliate programs that attract the most search traffic and offer the best commissions.
Publishers often make the most of affiliate marketing by creating content that adds real value for their readers and prioritizes their experience.
Publishers often do this by creating “Best of” or “Top X” oriented posts that address their audience’s needs and pain points, while, at the same time, allowing them to monetize their content by using affiliate links throughout the posts.
By adding relevant and contextual affiliate links in such posts, publishers foster an authentic user experience that puts their readers first.
This is one of the most significant advantages of affiliate marketing compared to alternative marketing methods such as sponsored posts.
Today’s consumers are increasingly distancing themselves from heavily business-oriented content, as it’s often perceived as inauthentic and disingenuous.
By focusing on high-quality content that adds value to readers and combining it with relevant and contextual affiliate links, everyone wins!
Additionally, Google rewards publishers who create original content and add real value for their readers.
They reward such publishers by placing them higher in search results and driving more traffic to them.
But, in today’s highly competitive and increasingly dynamic market, how can brands find the time to manage and grow their affiliate marketing program?
The answer is with the help of the right affiliate marketing software that streamlines the entire process.
Once upon a time, running a successful affiliate marketing program meant manually managing every aspect – a time-consuming and inefficient process.
Thankfully, these days, affiliate marketing software and solutions have evolved to offer all the necessary tools in a single place, which simplifies the whole process and enables brands to optimize their programs and focus on growth.
Therefore, brands need to utilize the right affiliate marketing software to stay competitive and maximize ROI in today’s highly competitive affiliate marketing space.
This article will go over what affiliate marketing software is and what makes a great affiliate software platform.
We’ll also review the top 10 affiliate marketing software platforms that brands can use to take their affiliate program to the next level.
What Is An Affiliate Marketing Software?
In a nutshell, affiliate marketing software is a comprehensive tool that facilitates all aspects of affiliate marketing program management.
It allows brands to track, manage, and grow their affiliate marketing campaigns.
Most affiliate marketing software platforms share standard features such as affiliate onboarding, collaboration with affiliate partners, affiliate tracking and reporting, and referral, cost, and commission payment management.
What Makes A Good Affiliate Marketing Software Platform?
Though most affiliate marketing software platforms share many of the same features, what sets apart the good platforms from the bad is what’s important.
For starters, the actual platform must have an intuitive and user-friendly interface.
An affiliate marketing platform can boast all of the best affiliate tools and features available.
Still, it’s a moot effort if the dashboard is complicated for most people.
Additionally, since brands usually utilize a variety of Software as a Service (SaaS) platforms for ecommerce and affiliate marketing, affiliate marketing software platforms need to offer tons of third-party SaaS integrations.
The best affiliate marketing software platforms offer robust tracking and reporting capabilities.
Brands need to be able to precisely track their affiliate sales and access real-time granular data to measure the ROI of their affiliate campaigns effectively.
Additionally, a good affiliate marketing platform will provide brands with all the affiliate tools they need to launch, manage, promote, and scale their affiliate programs, such as flexible commission management and customizable real-time affiliate tracking and reporting capabilities.
At the same time, they should offer their clients peace of mind by providing the highest level of fraud detection and other security features.
Lastly, the best affiliate marketing software platforms mean nothing if there isn’t quality customer service available 24/7 to back it up. Readily available customer assistance is equally important for brands as it is for affiliates.
Top 10 Affiliate Marketing Software
1. Refersion
With over 60,000+ registered merchants, 6.6 million affiliates managed, and $2 billion in affiliate revenue tracked, Refersion is one of the leading affiliate marketing software platforms on the market.
Its robust and highly personalized dashboard allows brands to manage all aspects of their affiliate program, such as monitoring all aspects of their affiliate activity with extensive real-time reporting capability.
Refersion offers brands all the tools they need to scale and promote their affiliate programs, such as managing commissions, payouts, and providing simplified tax automation. It also offers easy integration with popular tools like Shopify, WooCommerce, and BigCommerce.
While Refersion does come with a higher price point than some competitors – starting at $99 per month – it’s hard to find a solution that offers the same level of top-notch affiliate tools, marketplace, and customer service.
Pricing:
- The professional tier starts at $99/month (if paid annually) for up to 50 monthly order conversions.
- The business tier starts at $249/month (if paid annually) for up to 200 monthly order conversions.
- The enterprise tier is available with unlimited monthly order conversions – you’ll need to contact Refersion for pricing details.
2. Impact
Impact is one of the biggest affiliate marketing software platforms for cloud automation.
Its signature product, the Impact Partnership Cloud, allows brands to automate their affiliate and influencer marketing campaigns. It offers a marketplace where brands can connect with a network of affiliates, influencers, ambassadors, and other possible partners.
The platform’s tools also include dynamic commissioning, reporting, advanced analytics, and third-party integrations for companies to track and manage their affiliate programs.
However, pricing is not readily available, and you must contact the Impact sales team for a custom quote.
Pricing:
- Custom quotes are available upon request.
3. Tapfiliate
For businesses primarily operating and generating their revenue on ecommerce SaaS platforms, Tapfiliate may be a great choice.
It features a range of automation capabilities, including an autopilot mode that can automate things such as onboarding new affiliates, sharing via social media, or even drip campaigns.
Tapfiliate easily integrates with major ecommerce players like Shopify and WooCommerce, and offers advanced tracking and reporting capabilities. However, most of the features are accessible only through the Pro plan, which starts at $149 a month – nothing to sneeze at.
Pricing:
- The essential plan starts at $74/month for 1 team member and basic features.
- The pro plan starts at $124/month for 5 team members and more advanced features.
- The enterprise plan offers custom pricing for unlimited team members, unlimited tracking requests, a dedicated personal manager, and more.
4. Awin
Awin, previously known as Zanox, merged with Affilinet in 2017 to become one of the largest affiliate marketing platforms, providing “unlimited access to over 1M vetted partners.”
It features a handful of marketing and reporting features you’d expect from such an extensive network, like tools for cross-device tracking, real-time reporting, and automated compliance management.
The platform’s Awin Access program is an interesting option for smaller businesses or teams newer to affiliate marketing, as it offers a straightforward setup process and flexible pricing to make joining the network easier.
Registration is free on Awin, but it uses a performance-based pricing model. This means brands pay a predetermined cost-per-acquisition (CPA), and specific pricing details are only available upon request.
Pricing:
- Custom quotes are available upon request.
5. CAKE
CAKE is another SaaS-based affiliate marketing platform, meaning you can access it from anywhere (with an Internet connection).
CAKE partners with a bunch of partners to offer a variety of streamlined and automated features. It’s known for its great tracking and reporting capabilities, which enable you to follow and optimize your campaigns in real time.
The platform boasts more than 500 advertisers, networks, and publishers across 50+ countries, and it offers 24/7 customer support to its users. It has customizable features, granular data analysis, and impressive fraud protection to give customers peace of mind.
Unfortunately, CAKE’s pricing is not readily available on its website. It also doesn’t feature any pre-made promotional tools for marketers, which doesn’t make it quite suitable for novice users just starting out with their affiliate program
Pricing:
- Custom quotes are available upon request.
6. ClickBank
ClickBank was one of the first affiliate platforms, launching all the way back in 1998. Since then, it’s grown to one of the largest affiliate marketplaces with over 200 million customers.
According to the company’s website, there are 300,000+ daily purchases made on ClickBank – and it boasts $4.2B in paid commissions.
ClickBank stands out for its native support for subscription services, which makes it easy for brands to create one-click, repeatable purchases. This allows them to provide monthly products without requiring manual monthly payments.
It also offers some of the standard features commonly found on most affiliate platforms, such as affiliate reporting, payments, commissions management, and third-party integrations. It’s quick and easy to list your products and set up affiliate programs on the platform.
However, compared to some of the other affiliate platforms on this list, it doesn’t offer a demo, free trial, or monthly pricing. Instead, ClickBank charges a one-time activation to list products on the platform and then a fee per sale.
Pricing:
- One-Time Activation Fee: $49.95.
- Transaction Fee: 7.5% + $1 per sale.
7. CJ Affiliate
CJ Affiliate is a well-known and reputable affiliate marketing platform. It offers access to hundreds of advertisers, publishers, and potential partners in one platform.
CJ Affiliate provides a customizable dashboard and a variety of reports and specialized tools, including advanced tracking and reporting capabilities. Most notably, it offers specialized tools, such as Deep Link Automation and Product Widgets, that enable brands to improve their affiliate program ROI.
While CJ Affiliate is a great choice for businesses of all sizes, it’s worth noting that the company doesn’t provide a free trial or demo, operates on a performance-based pricing model, and you’ll need to reach out for specific details.
Pricing:
- Custom quotes are available upon request.
8. TUNE
Designed for companies that require detailed tracking and analytics, TUNE allows brands to build, manage, and grow their affiliate partner networks through its proprietary marketing technology.
TUNE offers a flexible platform, which users can tweak and tailor to fit their needs. Within the platform, you have customizable tools, commissions, payments, and real-time affiliate tracking and reporting.
However, it doesn’t provide affiliate promotional tools like most other platforms, and there is no straightforward pricing listed on the website.
It does, however, list details on its different plans, including a Pro Plan with basic features up to an Enterprise Plan with features like custom integrations, premium support, enhanced fraud prevention, and more.
Pricing:
- Custom quote available upon request.
9. LeadDyno
LeadDyno specializes in affiliate program promotion and perhaps offers the most promotional tools available in an affiliate marketing software platform.
LeadDyno offers tools that enable brands to create various promotional campaigns, such as email, newsletters, and social media campaigns, making it a wonderful choice for companies that want to expand the reach of their programs.
It provides a straightforward user experience that makes it easy to onboard affiliates, track your performance, and manage payouts. Extensive real-time tracking and reporting features give businesses the ability to monitor and optimize their campaigns.
Pricing is on the affordable side and LeadDyno offers a free trial – which not all tools on this list do!
Pricing:
- The lite plan starts at $49/month for up to 50 active affiliates, one commission plan, one reward structure, and other basics.
- The essential plan is $129.month and offers up to 150 active affiliates, three commission plans, and one reward structure, as well as other advanced features like a landing page, 1:1 call and video support, and more.
- The advanced plan is $349/month and offers up to 500 active affiliates, unlimited reward structures and commission plans, and many other advanced features.
- The unlimited plan is $749/month and offers unlimited active affiliates, unlimited reward structures and commission plans, and more.
10. ShareASale
With over 20 years of experience, ShareASale has been around for quite some time. It’s a reliable solution for merchants and affiliates alike, and carries a variety of tools to help boost your affiliate marketing programs.
If you’re looking for an extensive network of affiliates and partners across a ton of industries, ShareASale is a good option for you. You’ll also get access to customizable affiliable management, real-time tracking, detailed reporting, custom banner, and link generation, and plenty more.
One thing to note: like a few of the other tools listed here, ShareASale uses a performance-based pricing model that includes a one-time network access fee and then transaction fees.
Pricing:
- There is a one-time setup fee of $650.
- Transaction fees: 20% of each affiliate commission, with a minimum of $35/month.
Wrapping Up
Great affiliate marketing solutions enable brands to easily launch and manage affiliate programs, as well as track referrals and sales made by their affiliate partners.
The best affiliate marketing software provides brands with all the tools needed to launch, promote, and grow their affiliate program.
At the same time, they provide customizable and easy-to-use reporting capabilities for real-time performance tracking.
Without reliable tracking and reporting tools, brands cannot effectively assess the success and profitability of their affiliate campaigns and partnerships.
More resources:
Featured Image: Panchenko Vladimir/Shutterstock
SEO
Early Analysis & User Feedback
OpenAI, the company behind ChatGPT, has introduced a prototype of SearchGPT, an AI-powered search engine.
The launch has sparked considerable interest, leading to discussions about its potential to compete with Google.
However, early studies and user feedback indicate that while SearchGPT shows promise, it has limitations and needs more refinement.
Experts suggest it needs further development before challenging current market leaders.
Study Highlights SearchGPT’s Strengths and Weaknesses
SE Ranking, an SEO software company, conducted an in-depth analysis of SearchGPT’s performance and compared it to Google and Bing.
The study found that SearchGPT’s search results are 73% similar to Bing’s but only 46% similar to Google’s.
Interestingly, 26% of domains ranking in SearchGPT receive no traffic from Google, indicating opportunities for websites struggling to gain traction.
The study highlighted some of SearchGPT’s key features, including:
- The ability to summarize information from multiple sources Provide a conversational interface for refining searches Offering an ad-free user experience.
- However, the research noted that SearchGPT lacks the variety and depth of Google’s search results, especially for navigational, transactional, and local searches.
- The study also suggested that SearchGPT favors authoritative, well-established websites, with backlinks being a significant ranking factor.
Around 32% of all SearchGPT results came from media sources, increasing to over 75% for media-related queries.
SE Ranking notes that SearchGPT needs improvement in providing the latest news, as some news results were outdated.
User Experiences & Limitations Reported By The Washington Post
The Washington Post interviewed several early testers of SearchGPT and reported mixed reviews.
Some users praised the tool’s summarization capabilities and found it more helpful than Google’s AI-generated answers for certain queries.
Others, however, found SearchGPT’s interface and results less impressive than those of smaller competitors like Perplexity.
The article also highlighted instances where SearchGPT provided incorrect or “hallucinated” information, a problem that has plagued other AI chatbots.
While the SE Ranking study estimated that less than 1% of searches returned inaccurate results, The Washington Post says there’s significant room for improvement.
The article also highlighted Google’s advantage in handling shopping and local queries due to its access to specialized data, which can be expensive to acquire.
Looking Ahead: OpenAI’s Plans For SearchGPT and Potential Impact on the Market
OpenAI spokesperson Kayla Wood revealed that the company plans to integrate SearchGPT’s best features into ChatGPT, potentially enhancing the popular language model’s capabilities.
When asked about the possibility of including ads in SearchGPT, Wood stated that OpenAI’s business model is based on subscriptions but didn’t specify whether SearchGPT would be offered for free or as part of a ChatGPT subscription.
Despite the excitement surrounding SearchGPT, Google CEO Sundar Pichai recently reported continued growth in the company’s search revenue, suggesting that Google may maintain its dominant position even with the emergence of new AI-powered search tools.
Top Takeaways
Despite its current limitations, SearchGPT has the potential to shake up online information seeking. As OpenAI iterates based on user feedback, its impact may grow significantly.
Integrating SearchGPT’s best features into ChatGPT could create a more powerful info-seeking tool. The proposed subscription model raises questions about competition with free search engines and user adoption.
While Google’s search revenue and specialized query handling remain strong, SearchGPT could carve out its own niche. The two might coexist, serving different user needs.
For SearchGPT to truly compete, OpenAI must address accuracy issues, expand query capabilities, and continuously improve based on user input. It could become a viable alternative to traditional search engines with ongoing development.
Featured Image: Robert Way/Shutterstock
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