Adapting to AI: How B2B and DTC Brands Are Navigating the New Search Landscape

Adapting to AI: How B2B and DTC Brands Are Navigating the New Search Landscape

Table of Contents

  1. Key Highlights:
  2. Introduction
  3. The Impact of AI on Consumer Search Behavior
  4. Rethinking Search Strategies
  5. The Role of Content Creation in SEO
  6. Brand-Building in the Age of AI
  7. The Future of Search Marketing
  8. FAQ

Key Highlights:

  • As AI-driven search tools reshape consumer behavior, brands are re-evaluating their search strategies to maintain visibility and engagement.
  • B2B and DTC marketers are experiencing declines in click-through rates, prompting a shift towards more brand-focused marketing approaches.
  • Companies like Amex GBT and Kendra Scott are implementing innovative strategies, including extensive website overhauls and the creation of AI-generated content, to adapt to the changing landscape.

Introduction

The advent of artificial intelligence in search technology is not just a trend; it represents a seismic shift in how consumers discover products and services. As tools like ChatGPT and Google's AI Overviews become integral to the digital landscape, brands that rely on traditional search strategies find themselves at a crossroads. For B2B advertisers and direct-to-consumer (DTC) brands, the urgency to adapt is palpable. These businesses are taking proactive measures to navigate the implications of AI on their marketing strategies, particularly in search engine optimization (SEO) and customer engagement. This article delves into the challenges and responses of various brands as they grapple with these changes, highlighting the strategies they are employing to sustain their market presence.

The Impact of AI on Consumer Search Behavior

The integration of AI into search engines has significantly altered consumer behavior. According to recent studies, a substantial portion of consumers now prefers AI tools over traditional search engines, with reports indicating that 58% have made this switch. This transformation is particularly evident among younger demographics, who are more inclined to engage with AI-driven platforms like ChatGPT. As a result, brands are experiencing shifts in click-through rates (CTR) and conversion metrics, which have prompted a re-evaluation of marketing strategies.

B2B Brands Facing New Challenges

B2B companies are particularly vulnerable to these shifts. For instance, Amex GBT, a business travel service provider, relies heavily on paid search to attract clients. Alisa Copeman, the company's Chief Marketing Officer, acknowledges the lengthy buying journey that her customers undergo, emphasizing the need for a robust search strategy. However, as AI tools begin to dominate the search landscape, the reliability of traditional customer pathways is being called into question. Copeman's insights underscore the urgency for B2B brands to evolve their search strategies to remain competitive.

DTC Brands Adapting to AI Search Tools

DTC brands are not immune to the effects of AI either. A survey revealed that these companies allocate approximately 20% of their media budgets to paid search, which is more than any other paid media channel. As consumers increasingly favor AI-driven search solutions, brands are experiencing declines in both paid and organic search performance. Nicole Penn, CEO of EGC Group, noted that some of her DTC clients have reported a significant drop in CTR for both paid and organic search, particularly among younger consumers.

Rethinking Search Strategies

In response to the challenges posed by AI search tools, marketers are rethinking their strategies to maintain competitiveness. The focus has shifted toward optimizing search practices to align with the emerging landscape.

Optimizing Paid Search Campaigns

Marketers are adjusting their paid search efforts by refining keyword strategies. Agencies like EGC Group are advising clients to bid less on "long-tail keywords," which are more likely to trigger AI-generated search results. Instead, they are emphasizing narrower keyword searches that could yield better engagement. This shift reflects a broader strategy aimed at adapting to the changing dynamics of search.

Enhancing Organic Search Performance

For many brands, enhancing organic search performance is critical in the age of AI. Commercetools, for example, has taken significant steps to restructure its website and marketing copy to better align with AI search requirements. By focusing on how information is presented and tagged, the company aims to improve its visibility in AI-generated search results. The marketing team is now utilizing new metrics to evaluate success, including "share of model" and assisted conversions, highlighting a shift in how marketing effectiveness is being measured.

The Role of Content Creation in SEO

As brands navigate the complexities of AI-driven search, the importance of content creation has come to the forefront. The need for high-quality, relevant content that appeals to both consumers and search algorithms has never been greater.

AI-Generated Content as a Strategy

Kendra Scott, a jewelry retailer, has adopted an innovative approach by generating a significant amount of content through AI. The company added 8,000 new pages to its website, each tailored to align with long-tail search queries. This strategy is designed to enhance organic search performance, and the results have been promising, with a notable percentage of the new pages ranking on the first page of Google search results. By leveraging generative AI, Kendra Scott illustrates how brands can adapt to the changing landscape while maximizing their digital presence.

Press Coverage and Earned Media

In addition to creating new content, brands are also recognizing the value of earned media. EGC Group has emphasized the importance of press coverage in enhancing organic search performance. Given that large language models prioritize information from media sources, securing positive press coverage can bolster a brand's visibility and credibility in AI-driven search results.

Brand-Building in the Age of AI

The evolving search landscape has led many brands to consider broader marketing strategies beyond traditional performance channels. A notable example comes from Amex GBT, which recently launched a brand awareness campaign to bolster its visibility and address shifts in consumer behavior. By expanding its marketing efforts across various channels, including television, social media, and experiential marketing, the company aims to create a stronger brand presence that can withstand the pressures of changing search dynamics.

Integrating Multi-Channel Marketing

The multi-channel approach allows brands to reach consumers at various touchpoints, fostering a more holistic connection. This strategy not only helps to build brand awareness but also mitigates reliance on search performance alone. By diversifying marketing channels, brands like Amex GBT are proactively addressing the challenges posed by AI-driven search.

The Future of Search Marketing

As AI technology continues to evolve, the landscape of search marketing will undoubtedly continue to shift. For brands to thrive in this new environment, they must remain agile and adaptive. The key will be to balance traditional marketing strategies with innovative approaches that leverage emerging technologies.

Emphasizing Customer Experience

Brands will need to prioritize customer experience in their marketing strategies. Understanding how consumers interact with AI search tools and tailoring content to meet their needs will be vital. By focusing on delivering value and enhancing user experience, brands can build loyalty and trust, which are essential in a competitive market.

Continuous Monitoring and Adaptation

The rapidly changing nature of search technology necessitates continuous monitoring of trends and performance metrics. Brands must remain vigilant in assessing the impact of AI on their marketing strategies and be willing to adapt as needed. This mindset will be crucial for long-term success in an uncertain digital landscape.

FAQ

What are AI-driven search tools?

AI-driven search tools are platforms that utilize artificial intelligence algorithms to enhance search capabilities, often providing users with more personalized and relevant results. Examples include ChatGPT and Google's AI Overviews.

How are brands adapting their search strategies due to AI?

Brands are re-evaluating their keyword strategies, focusing on narrower and more targeted searches, enhancing organic search performance through content creation, and diversifying their marketing efforts beyond traditional performance channels.

What role does content creation play in SEO?

High-quality content is essential for improving visibility in search results, especially in the context of AI-driven search. Brands are leveraging both AI-generated content and earned media to enhance their online presence.

Should brands be concerned about declining click-through rates?

While declining CTRs can be concerning, they also present an opportunity for brands to reassess their strategies and innovate their marketing approaches to align with evolving consumer behaviors.

How can brands maintain competitiveness in the age of AI?

To remain competitive, brands should prioritize customer experience, continuously monitor trends, adapt their marketing strategies, and embrace innovative approaches that leverage emerging technologies.

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