Hospitality Net Podcast Series

World Panel discusses impact of generative AI in travel search advertising

Hospitality Net Season 2024 Episode 2

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0:00 | 10:22

The sources discuss the potential impact of generative AI on the search advertising landscape. While traditional cost-per-click (CPC) models have long been dominant, the emergence of AI-powered search engines, such as Perplexity, raises questions about the future of click-based advertising. The shift towards generative AI may lead to a decrease in clicks as users find answers directly within search results, leading to a potential move towards cost-per-mille (CPM) models. Experts offer diverse opinions on the transition, with some suggesting a gradual shift towards CPM, while others argue that CPC models will continue to play a significant role. Regardless of the future trajectory, there is a consensus that marketers must adapt to the evolving landscape by focusing on creating high-quality content, diversifying traffic sources, and experimenting with new pricing models.