Advertisers Expand Budgets to Secure AI Search Visibility

Major consumer brands are responding to the rise of artificial intelligence search tools by significantly increasing their media budgets. Rather than relying on narrow technical optimizations, marketing executives are investing in broad brand awareness campaigns to ensure their products remain top-of-mind when users consult AI assistants for shopping decisions. This strategic shift reflects a growing concern that traditional search visibility is eroding as consumer habits evolve.

The decision is driven by data showing that a majority of U.S. consumers now use AI tools for research and purchase considerations. For categories requiring detailed comparison, such as insurance, luxury vehicles, and footwear, this shift creates a direct vulnerability for brands that have not established strong emotional connections. Marketers are therefore prioritizing upper-funnel activities to build the cognitive foundation necessary to influence these AI-mediated recommendations.

Consumer research habits shift to AI

A recent survey of 2,600 shoppers by the digital agency Dept. indicates that 61% of U.S. consumers used an AI assistant for shopping research or decision-making in the past three months. This trend is particularly pronounced in high-consideration categories where customers spend time comparing options. As these tools become standard, advertisers find that their visibility in traditional search results is less critical than their presence in the generative answers provided by these new platforms.

This change poses a specific challenge for brands that rely on performance marketing. If an AI assistant recommends a competitor based on perceived value or brand equity, the original advertiser loses the customer before a traditional click even occurs. Consequently, the focus is shifting from capturing existing demand to shaping the preferences that AI systems rely on for recommendations. This requires a fundamental change in how brands measure the success of their marketing efforts.

State Farm prioritizes brand equity

State Farm has recently launched a major sports-adjacent campaign featuring NFL quarterback Patrick Mahomes as college football season begins. Alyson Griffin, the company’s head of marketing, stated that shifts in consumer behavior caused by AI search make this type of brand-building work more important, not less. Griffin noted that the company is not pulling back on these efforts despite the changing digital landscape.

Griffin explained that concerns about AI search impacts are actively influencing internal debates over media budgets. State Farm’s ad spend has remained relatively static for several years, but leadership is now having conversations about capturing a larger share of the open audience. The goal is to ensure that when consumers are presented with a choice, the State Farm brand and its mascots create enough emotional resonance to pause the decision process. This approach treats brand equity as a defensive asset in an AI-driven environment.

Industry leaders cite rising ad spend

The Interactive Advertising Bureau (IAB) attributes part of the upward revision in U.S. ad spend growth estimates to marketers adapting to changing search habits. The IAB raised its annual growth projection from 9.5% to 12.3%, noting that 44% of buyers identify adapting to search behavior as their top investment challenge. Chris Bruderle, VP of industry insights at the IAB, emphasized that consumers are becoming more discerning and are frequently switching to lower-priced or store-brand alternatives. This trend underscores the need for brands to maintain strong equity, particularly in AI environments.

Analysts from Gartner and agencies like Mediaplus support this strategy, noting a correlation between brand awareness and search performance. Mediaplus is now advising clients to combine generative engine optimization with broader favorability-building work. Oliver Williams, head of digital performance at Mediaplus, explained that the agency is prompting clients to invest in the upper funnel to improve their standing in consumer reference building. This multi-pronged approach aims to secure brand relevance regardless of how search interfaces evolve, a perspective also highlighted by reports from GN technics/ai (en-US) regarding industry trends.