Shoppers Are Turning to AI Chatbots Instead of Google. Here’s Why

This week, Jared Bauman and Thomas Smith sit down for another insightful episode of the Niche Pursuits podcast, diving into some major industry shifts.

They talk about how AI search is changing the way people interact with Google, the slow but potentially impactful March 2025 core update, and the latest AI models from OpenAI and Anthropic.

They also share their side hustle wins and struggles and dissect a few weird niche sites.

If you're looking to stay ahead in SEO, content creation, and AI-driven marketing, this episode had plenty of takeaways.

Watch the Full Episode

AI Search is Changing the Game

First, they talk about how Adobe recently released a study analyzing over a trillion visits to U.S. retail sites and surveying 5,000+ consumers to uncover how AI-powered search is impacting search behavior, engagement, and online shopping.

Key findings include:

• 1300% increase in AI search referrals during the 2024 holiday season compared to the previous year
• 2000% jump in AI-driven traffic on Cyber Monday alone
• AI search users engage more: 8% longer time on site, 12% more pages browsed, and a 23% lower bounce rate than traditional search users
• 39% of consumers use AI search for shopping, 55% for research, and 47% for product recommendations

Why AI Search Users Are More Engaged

They talk about how the Adobe study suggests that AI is more effective than traditional search at matching users with content and products they actually want. Several factors contribute to this:

• AI search engines personalize recommendations based on previous interactions, leading to higher conversion rates and engagement.
• Companies are prioritizing AI search experiences, placing AI-generated results prominently, which can siphon off high-intent users before they ever reach traditional search listings.
• AI search minimizes ad clutter, making the browsing experience more seamless and trustworthy.

The Implications for Content Creators and Brands

As AI search gains traction, brands and publishers must adapt their SEO strategies to stay visible. Jared and Thomas talk about how traditional link-building may become less impactful as AI search engines rely more on brand authority, external signals, and contextual relevance rather than just backlinks and keyword optimization.

To prepare for the shift, they discuss how brands should focus on:

• Increasing external mentions and citations across the web
• Building a strong social media presence and digital PR strategy
• Experimenting with AI-focused content formats, such as FAQ-style pages and structured data that AI models can easily interpret

Google’s March 2025 Core Update

Next up, they talk about how Google officially launched its March 2025 Core Update over a week ago, but the impact has been slower and less volatile than expected. They talk about SEO analyst Barry Schwartz, who notes that while some sites report ranking shifts, it has not been as widespread as previous updates—yet.

However, SEO experts like Glenn Gabe suggest that significant ranking changes may have started before Google officially announced the update. Google maintains that earlier fluctuations were unrelated, but industry insiders suspect they were part of a broader adjustment process.

Will This Update Reward High-Quality Content?

Google has hinted that it aims to reward creators and original content publishers in 2025. Jared and Thomas discuss trends observed so far:

• Original news content appears to be gaining rankings. Sites that produce unique, timely reporting have seen an increase in visibility.
• Video and multimedia content, especially YouTube, TikTok, and Shorts, are showing up more prominently in search results.
• No major penalties have been reported, which is good news for many publishers who suffered from previous updates.

While we are still awaiting further shifts, creators should monitor traffic closely and consider adding news-style or video content to future strategies.

New AI Models Focus on Creativity, Not Just Raw Power

Several major AI models have been released recently, including Claude 3.7 Sonnet from Anthropic and GPT-4.5 from OpenAI. Instead of simply pushing for bigger, more powerful models, these updates are focusing on practical applications like creativity, reasoning, and user interaction.

Comparing Claude 3.7 and GPT-4.5:

• Claude 3.7 excels in creative writing and user interaction. It’s ideal for blog writing, storytelling, and brainstorming content ideas.
• GPT-4.5 improves world knowledge and personality refinement, making it better for structured outputs like newsletters and persuasive writing.
• Raw computation power is no longer the main focus—these models are optimized for real-world usability rather than just benchmark scores.

Side Hustle Shenanigans

This episode also featured updates on Thomas and Jared’s side hustles, both of which revolve around newsletters but with different strategies.

• Jared’s Weekend Growth Newsletter – Now two years old and approaching 10,000 subscribers, this newsletter focuses on online business insights. While content creation has become easier with experience, challenges remain, such as maintaining growth and securing sponsorships.
• Thomas’s 9 to 5 News – A local news newsletter focused on the San Francisco Bay Area. With over 3,400 subscribers and a 60% open rate, it generates significant engagement and helps drive traffic to his Bay Area Telegraph website, which is monetized through Mediavine.
• Both newsletters demonstrate the power of consistency in building an audience, even if monetization strategies differ.

The Weird Niche Sites

Jared and Thomas also highlighted two fascinating niche websites:

• Wallet Burst – A site that builds financial calculators tailored for the FIRE (Financial Independence, Retire Early) movement. Instead of relying on traditional content, they focus on tools that provide unique value and rank well in search.
  
• Quick Jewelry Repairs – A jewelry repair business that offers an unexpected service: professional jewelry untangling. Customers can mail in their tangled necklaces and chains for professional untangling at $15 per item, showcasing how even the smallest niche can be turned into a profitable business.

Key Takeaways for Content Creators and Entrepreneurs

The landscape of online search and content marketing is shifting rapidly:

• AI search is reducing reliance on traditional SEO and rewarding brands with a strong online presence across various platforms.
• Google’s updates continue to evolve, with early signs indicating a preference for news content and multimedia.
• New AI models are focusing more on human-like creativity and practical use cases, rather than just raw power.

Staying adaptable, testing new content formats, and investing in brand authority will be crucial strategies in 2025.

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