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Advertising Remains Consistent Even With More AI

Shift in Search Engine Use of AI 

Google is revolutionizing its flagship product by integrating new AI capabilities into its search functionality. According to experts, this move represents a significant shift in the Google search landscape. The forthcoming changes to Google Search are poised to alter the platform in profound ways, aligning with Google’s overarching vision for artificial intelligence. Faced with competition from emerging AI players like ChatGPT, the company is reorganizing its primary offering to deliver more personalized and concise results through AI-driven processes. These modifications to Google Search have been in the works for quite some time. Last year, Google established a dedicated section within its Search Labs to allow users to experiment with new features, including the Search Generative Experience. The pressing question has been whether these features would eventually be integrated into Google Search permanently. The answer, it appears, is a resounding “yes.” 

Gemini’s search-specific features will enhance various aspects of the new Google Search. One of the most important updates to Google’s generative AI functions is the introduction of AI Overviews, which Google has been testing in Labs. AI-generated summaries will now be displayed at the top of search results, particularly for more complex questions. With every search, Google aims to determine whether to provide AI-generated answers or traditional blue links, using an algorithmic assessment behind the scenes. 

When algorithms provide just one answer instead of offering multiple options for users to explore, mistakes can have serious consequences. Even Gemini, an advanced AI, has been known to share inaccurate or completely fabricated information at times.

Nissan Announces New Sales Plan 

According to a memo from Nissan obtained by Automotive News, starting May 1, dealers have the green light to promote almost the entire 2024 model year selection at discounts of up to 10% below invoice. Furthermore, the Armada may be advertised at discounts of up to 15% below invoice. 

The automotive industry is currently facing challenges with high vehicle prices, leading to a decline in consumer interest. Nissan’s strategy to lower prices is aimed at reigniting consumer enthusiasm and driving traffic to its stores. While retailers support this initiative, they are hesitant about shouldering the financial burden. 

Some dealers argue that the automaker should increase incentive spending and Tier 1 marketing to boost sales, rather than placing the burden on the network. While others perceive the discounting as a departure from Nissan’s pre-pandemic pledge to enhance dealer profitability by emphasizing it over market share. 

Tesla Welcomes Advertising  

Tesla has historically avoided advertising, but has recently increased spending on various paid media platforms, not just those owned by Elon Musk. 

Similar to Google and Apple, Tesla initially depended on word-of-mouth endorsements from early adopters and Silicon Valley tech enthusiasts, as well as its CEO’s increasing public presence, to build recognition for its brand. 

The majority of Tesla’s advertising budget is allocated to YouTube as reported by Sensor Tower, a digital ad monitoring firm. Recent financial filings indicate that media coverage plays a crucial role in driving Tesla’s sales. Additionally, Tesla has expanded its advertising efforts to include video ads on the Meta platforms, Facebook and Instagram, as well as on X (formerly Twitter). 

Tesla’s latest YouTube ads use a family-oriented approach, showcasing the safety of the Model Y with images of children in the backseats and highlighting its five-star safety rating. Additionally, the ads emphasize the convenience of the trip planner, which offers travel recommendations based on the locations of Tesla chargers. 

Just like Tesla, everybody needs marketing—and at Strong Automotive, we can help you do just that. We offer a wide array of services, from digital marketing to direct mail, covering all aspects of contemporary advertising. 

John Paul Strong

John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.

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