ChatGPT Ads vs. Google's Wait-and-See. Between 'Yokozuna Sumo' and AI, I brainstormed our company's customer acquisition strategy
“It seems ChatGPT is finally starting to run ads.”
A few days ago, that news popped up on YouTube. For many, it might be a story that ends with a simple “Oh, I see.” However, for small business owners like us, especially those running share houses where web-based customer acquisition is a lifeline, this is a sign of a tectonic shift.
“If ads start appearing in AI, what will happen to search engine market share?” “Where will our target demographic go?” “Should we secure a budget now, or wait and see?”
Questions came one after another. So, I immediately launched my AI partner (Gemini) and started an emergency strategy meeting—a so-called 'brainstorming session'.
This article is a record of the dialogue between the AI and me regarding our 'future customer acquisition strategy' that took place in the few tens of minutes after learning the news. In conclusion, we arrived at the answer of running 'two strategies' simultaneously.
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1. The first brainstorming session: “Is there a chance for success in share houses?”
The discussion started by having Gemini read the information from the first news video (by LANY) and asking it point-blank.
Me: “Should a share house operator like me run GPT ads?”
Gemini: “In conclusion, you should. They are highly compatible.”
The reasoning derived by the AI was very logical. Currently, about 90% of ChatGPT users are using the 'Free' version or the newly established low-cost version that will be subject to these ads. And that demographic is primarily young people in their teens and 20s. This perfectly matches the customer base of share houses, which target singles, students, and young professionals.
Here, I used Gemini to derive the potential advertising target population based on the number of GPT and Gemini users and their generational distribution.
・Scale and attribute distribution of ChatGPT / Gemini users in Japan
🤖 “Due to Japan's demographic structure, the number of young people is decreasing. However, ChatGPT contains a concentration of ‘over 7 million people in their teens and 20s.’ Even if you run TV or newspaper ads, most of the people reached are elderly. However, if you run ads on ChatGPT, it is calculated that you can reach 'one in every two young people in Japan' directly. For a share house business where 90% of tenants are young, this is as efficient as panning for gold in a 'river that only contains gold dust.'
What is even more important is the difference between 'searching' and 'consulting'. If Google Search is a place to look for answers to 'keywords,' ChatGPT is a place to have 'consultations about worries.'
For example, ‘I’m going to live alone in Tokyo starting this spring, but I’m worried because the initial costs are high. How can I save money?’ At the moment the user is pouring out such deep worries, ‘In that case, there are share houses where you can keep living costs down with zero deposit and key money,’ you can propose (advertise) a solution.
Unlike traditional 'annoying banner ads,' this is highly likely to be accepted as ‘a recommendation beneficial to the user.’ Especially for products like share houses that require 'lifestyle proposals,' a 'recommendation' from a trusted consultant like an AI could dramatically increase the conversion rate.
“This is a blue ocean.” Convinced of this, I decided to consider entering the ChatGPT advertising market.
Following that, new information came in.
2. New Information: 'Google Won't Budge'
While deepening the discussion, I found another video (by PC Nya Sokuhou). It had a surprising title.
'Google Executives Deliver the Final Blow to ChatGPT lol'
The content is as follows: Google's Vice President of Advertising reportedly stated clearly that 'there are no plans to place ads in the Gemini app.' Speaking of Google, they are an advertising company. I thought it was the natural order of things that if OpenAI does it, Google would follow suit. However, they are not moving.
At this point, a concern crossed my mind.
'Wait, does that mean users might flock from ChatGPT, which has become harder to use due to all the ads, to the ad-free, comfortable Gemini?'
So, I asked Gemini to conduct an in-depth investigation into the evaluations of internet users, including the 'comment section' of this video. Then, from the collective intelligence on the internet, a terrifyingly calm and cruel truth emerged.
3. The Core: 'Yokozuna Sumo' vs. 'Hand-to-Mouth Operation'
The video's comment section was overflowing with sharp insights that saw through the hidden side of Google's 'no-ads declaration'.
'Google will probably put ads on it after they've burned everything else down'
'There's no need to rush into placing ads (paraphrased: they'll do it after they've mostly crushed their rivals)'
'Us watching the monster war between Google and OpenAI from under the rubble of a destroyed city'
Here, the discussion reached its core. The conclusion that the AI and I arrived at. Before we knew it, the AI hegemony was shifting toward the usual 'battle between a Yokozuna (Google) and a challenger.'
● OpenAI (Challenger)'s Situation:
Hand-to-mouth operation | They are carrying massive deficits in development and maintenance costs. To convince investors, they need cash right now, regardless of the means. That is precisely why they have no choice but to run the 'ad' money-making machine, even if it means sacrificing user experience to some extent.
● Google (Yokozuna)'s Situation:
Watching from a high vantage point | They have already completed the world's strongest revenue ecosystem consisting of 'Google Search,' 'YouTube,' and 'Android.' They don't need to make money from AI alone right now. That is why they can smile and say, 'We are comfortable without ads,' while waiting for OpenAI to self-destruct with ads or struggle with funding. And then, in the scorched earth where there are no rivals left, they can slowly start running ads under their own preferred rules.
Isn't this the true intention behind Google not running ads? We need to understand this situation of structural disparity and refine the 'advertising strategy' that we, as business operators, should adopt.
Conclusion: Prioritize and Execute
The hybrid strategy to adopt now is to invest ad spend in ChatGPT, which is rushing to monetize, to capture tech-savvy young people as 'current customers,' while providing 'high-quality information (E-E-A-T)' to Gemini, which is taking a wait-and-see approach, to build 'trust assets' within the Google economic sphere.
Calmly analyze the 'monster war' situation and connect it to your company's 'efficiency.' This is my survival strategy for my share house, derived from brainstorming with AI.
The lifting of the ad ban in Japan is still a little way off, but I intend to test ad placements as soon as it begins. I will share the results once I have them.
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