SMBs Shift Budgets to Google AI Overviews, Test ChatGPT Ad Products
A Morgan Stanley survey finds SMBs increasingly adopt Alphabet’s AI Overviews in search for higher lead relevance and conversion intent. It also reports a modest year-over-year decline in Meta ad usage as many businesses plan pilots of ChatGPT ad products for generative text and video creation.
1. Morgan Stanley Survey Findings
The survey of SMB advertisers highlights a surge in adoption of Alphabet’s integrated AI Overviews within its search platform, with respondents reporting improved lead relevance and higher conversion intent compared to legacy ad solutions.
2. Meta Platforms Usage Decline
SMBs report a modest year-over-year softness in Meta’s digital ad usage, indicating that some advertising budgets are being redirected from social feeds to platforms offering generative AI discovery tools.
3. Rising Interest in ChatGPT Ad Products
A significant portion of businesses express intent to pilot OpenAI’s ChatGPT ad offerings for generative text and video content creation, aiming to lower creative production barriers and automate high-quality asset generation.
4. Market Share and Revenue Implications
The shift toward AI-enhanced search and creative automation could redistribute market share among major digital ad platforms, with early AI adopters poised to capture increased advertiser loyalty and long-term revenue resilience.