Business Lunch Podcast Summary

Title: The New Frontier: AI, Paid Media, and Organic
Host/Authors: Roland Fraser & Ryan Deiss
Release Date: November 19, 2024

In this insightful episode of Business Lunch, serial entrepreneur and business strategist Roland Fraser teams up with marketing expert Ryan Deiss to delve into the evolving landscape of marketing strategies, particularly focusing on the roles of Artificial Intelligence (AI), paid media, and organic search. Their candid conversation explores the shifting dynamics of search marketing, the rise of AI-driven platforms, and the strategies businesses can adopt to remain competitive in this new frontier.

Paid Media vs. Search Marketing

Ryan Deiss opens the discussion by emphasizing the importance of prioritizing paid media over search marketing when building a marketing plan from scratch. He states:

Ryan Deiss [00:00]: "Let's figure out paid first because it's going to deliver the fastest results. I want to know if something is working and I want to know if it's working quickly."

Roland Fraser concurs with Ryan's approach, highlighting that for startups or businesses initiating their marketing efforts, paid media often offers more immediate and measurable results compared to search marketing.

Roland Fraser [03:30]: "If it was we have paid that's working right now, I would continue to flesh that out and double down on it until I maxed it out and got in my other paid channels before I would really go to search."

The Decline of Organic Search

The conversation shifts to the challenges facing organic search as a marketing channel. Ryan references an article from Growth Memo that outlines three main reasons why search is less effective today:

1. Unpredictable Google Updates: These updates have made SEO a more volatile and less predictable channel.
2. Shift to Social Platforms: A significant portion of the younger demographic is migrating their search activities to platforms like TikTok and YouTube.
3. Increased On-Platform Content Consumption: Users are finding answers directly within search platforms, reducing the need to click through to external websites.

Ryan Deiss [06:14]: "Google updates have become unpredictable instead of enforcing a straight line which makes SEO less predictable as a channel."

Roland adds his perspective on the diminishing effectiveness of organic search, particularly criticizing the cluttered user experience dominated by ads and gated content.

Roland Fraser [08:23]: "They just ruined search with ads and manipulation of the results... It's very fragmented and very hard compared to paid."

The Impact of AI on Search

AI's role in transforming search behavior is a central theme. Both hosts discuss how AI chatbots are altering the way users interact with search engines, leading to a decline in traditional search usage.

Ryan Deiss [22:54]: "It's just so much crap."

Roland Fraser [18:04]: "Google's connection with YouTube... it's still tough... they have to go advertising because they've already got AdWords and a history of doing."

They express skepticism about the sustainability of AI-driven search models, likening the potential decline of AI search to the issues faced by traditional search engines overwhelmed by ads.

New Strategies for Organic Content

Addressing the challenges of organic search, Ryan introduces a new model for organic content strategies that hinge on three key elements:

1. Connection: Content must feature first-person, authentic expertise rather than scripted, generic material.
2. Authenticity: Maintaining consistent personality and positions, even if polarizing.
3. Surround Sound: Being present across multiple platforms to maximize reach and engagement.

Ryan Deiss [11:05]: "Connection, authenticity, and surround sound. It's all about having some type of key person of influence."

Roland expands on these elements, suggesting additional strategies like affiliate marketing, targeted email campaigns, and event marketing to complement the organic approach.

Roland Fraser [15:03]: "Can I do affiliate marketing? Can I get a bunch of affiliates that are referring me people, strategic partnerships around that?"

Alternative Marketing Channels

The hosts explore various alternative marketing channels that can be leveraged instead of or alongside traditional search marketing:

• Affiliate Marketing & Strategic Partnerships: Building networks that can refer customers organically.
• Targeted Email & Direct Mail: Utilizing both digital and traditional methods to reach specific audiences.
• Event Marketing: Participating in or organizing events to gather and engage the ideal customer profile (ICP).
• Social Media Platforms: Prioritizing platforms where the target audience is most active, such as TikTok, YouTube, and LinkedIn.

Roland emphasizes the importance of diversifying marketing efforts to ensure comprehensive coverage and engagement across different consumer touchpoints.

Roland Fraser [16:45]: "Facebook groups... one of the better places to go and find that."

Current Trends in Search Marketing

The discussion highlights recent statistics and trends affecting search marketing:

• Decline in Google’s Market Share: Google’s dominance in the search market has slightly decreased, partly due to the rise of AI chatbots.

  Roland Fraser [18:04]: "Google went from 92% to 89% of the market for search. But chatbots, AI chatbots... have gotten 8% of the market."

• User Experience Degradation: The increasing number of ads and cluttered search results are diminishing user satisfaction, potentially leading to a rapid decline in search engine usage.

  Ryan Deiss [20:15]: "You can just only put so many ads there for so long to where the user experience is so bad that people stop showing up."

Personal Insights on Search Behavior

Both Ryan and Roland share their personal preferences and habits regarding search engines and AI tools:

• Ryan Deiss: Continues to rely primarily on Google due to habit but acknowledges the growing influence of AI-driven search tools.

  Ryan Deiss [20:22]: "I still mostly go to Google because it's habit and I have not yet created the habit of going to ChatGPT."

• Roland Fraser: Prefers an AI-first approach for most searches, utilizing tools like Gemini for up-to-date information and relying on platforms like Reddit for authentic opinions.

  Roland Fraser [24:25]: "Reddit and Quora are decent, but there's a lot of sifting there too."

Conclusion

The episode wraps up with a humorous acknowledgment of the contentious nature of search engine marketing services, suggesting that their critical analysis might not sit well with traditional SEO practitioners.

Ryan Deiss [26:28]: "If you're currently offering search engine marketing services, I think we just created a ton of enemies."

Roland encourages listeners to share feedback and remain open to new strategies, even if it means challenging established norms.

Roland Fraser [26:44]: "If you found something that's working really great in search for you, please tell us because we are happy to be proven wrong."

This episode of Business Lunch provides a comprehensive analysis of the current marketing landscape, underscoring the need for businesses to adapt to emerging trends like AI while re-evaluating the efficacy of traditional channels like organic search. By prioritizing paid media and embracing a multifaceted organic strategy, entrepreneurs can navigate the complexities of modern marketing to achieve sustained success.