July 17, 2024

Local Memo: AI-Organized Search Results Begin to Appear

Chi Whitley

Chi Whitley is the Content Marketing Manager and AI Strategist at SOCi. With over four years of experience in SEO and a specialty in local SEO, he's passionate about helping multi-location businesses grow their brands and online presence in the ever-changing world of local marketing.

Local Memo: AI-Organized Search Results Begin to Appear

In this week’s update, learn about proof that Google is beginning to produce AI-organized search results for local searches, a study that found a third of Americans have used TikTok Shop in the past year, and TikTok ad spending slowing down with the looming sell or ban.

AI-Organized Search Results Begin to Appear

The News

Google announced during its May I/O event that U.S. users will soon see “this new AI-organized search results page when you look for inspiration—starting soon with dining and recipes, followed by movies, music, books, hotels, shopping, and more.” These were first discussed in our The SEO Juice webinar (see the 49:00 mark in our July webinar) and highlighted by Mike Blumenthal on LinkedIn. Google seems to have started publishing AI-organized search results. They’re now appearing in local searches.

In the example, Blumenthal notes that “restaurants in buffalo NY” results begin with restaurant listings, recommendations featuring search queries like “casual” and “good for groups.” Next, we see critics' picks via blogs like Tripadvisor and Food & Wine magazine, along with some Reddit and Quora results. Then, the AI-organized results give places based on types of food, such as “breweries with food” and “fine dining.” Subsequently, we see interactive neighborhood views, followed by autostart short videos or reels under a section titled “Trending Buffalo food.” They’re pulled from social media platforms TikTok, Instagram, and Facebook.

Why This Matters

Google's introduction of AI-organized search results could mark a shift in the landscape of local SEO. These results prioritize:

User preferences and behaviors in search results.
Enhanced visibility for locations aligning with criteria favored by AI and Large Language Models (LLMs).

This strategic move demonstrates Google's commitment to refining user experience by leveraging advanced AI technologies, positioning it as a pivotal player in the evolving digital marketing domain. As we can see, Google categorizes results using queries like “family-friendly restaurants” and “Buffalo’s iconic dishes.” This means that your Google Business Profiles (GBPs), menus, and local pages need as many relevant details as possible to appear in these results. Similarly, restaurants should advertise which neighborhoods they’re in to help appear in these results. These AI-organized search results also pull from and publish social media reels and short videos. It’s imperative that you link your social media pages to your GBPs and publish this type of content on your local social profiles. Finally, as Google noted, AI-organized search results will begin to pull from “movies, music, books, hotels, shopping, and more.” We’ll keep an eye on these AI-organized search results, and it’ll be interesting to see if Google receives the same heat as it did for its AI Overviews (AIOs).

A Third of Americans Have Used TikTok Shop

The News

A recent Omnisend survey found that 33% of Americans have purchased from TikTok Shop, which is surprisingly high given its September launch in the U.S. Gen Z is the primary user of TikTok Shop, with 56% of respondents shopping at the e-commerce platform last year and 36% shopping there at least monthly. According to the survey, beauty products (31%) and clothing (29%) are the most popular items to purchase on TikTok Shop. It’s not all positive, though. The primary grievances regarding TikTok Shop include prolonged delivery times (25%) and excessive advertising (20%).

Why This Matters

Similar to our Consumer Behavior Index (CBI) findings, TikTok is a fan favorite among Gen Zers (62%) for finding local businesses and conducting online purchases. As Gen Z enters the workforce, they’re quickly becoming a formidable economic force. Their online shopping habits are reshaping e-commerce. Furthermore, by launching TikTok Shop, TikTok has “entrenched itself deeper into the U.S. economy, strategically arming itself against the threat of a ban,” says Greg Zakowicz, senior e-commerce expert at Omnisend. As a business, watching what happens with the TikTok ban is worth tracking. Additionally, if your brand is not on TikTok or leveraging TikTok Shop, it’s something to consider depending on your target audience.

TikTok Ad Spend Slows Down

The News

Since President Biden signed the TikTok sell or ban into law in late April, TikTok has seen ad spending slow down. Before the ban, ad spend was up 19% YoY in March, but fell to 11% in April and 6% in May. Four of TikTok’s top 10 ad spenders reduces their MoM spending from March to April:

Target, -30%
DoorDash, -25%
Bayer, -20%
Procter & Gamble, -15%

Despite ad spend decreasing, EMARKETER predicts that usership will grow 6% this year. As you can see below, those 18-54 spend more time on TikTok per day than any other social media platform.

Courtesy of EMARKETER

Why This Matters

This report indicates that as long as the possibility of a ban exists, advertisers are likely to spend on other platforms. However, usership remains high and growing on TikTok. This dual trend suggests that while multi-location businesses may need to reconsider their advertising budgets and strategies on TikTok, the platform's growing user base remains a valuable audience. Therefore, businesses must balance reduced ad spending with innovative, cost-effective ways to engage with TikTok’s expanding user community.