OP #275: From Search to Answers, PE Recap, and More.

A dive into the potential tectonic shift that could occur in the organic search space and what this means for CEOs and CMOs.

Author

Darren Herman
November 05, 2024

Happy Tuesday OP Community. 

If you’ve been a reader of the OP for a while, you’ll know that I’m a fan of livestreamed commerce. I’m an angel investor in two (Loupe, StageTEN) live streaming commerce businesses and have run my own livestreams to sell sports cards during the pandemic. I’m sold on the livestream opportunity yet so many brands in the United States are hesitant and behind in the space compared to counterparts in Asia. My buddies at Cllct covered the space recently when live streaming powerhouse, Whatnot, released their report: 2024 State of Livestreaming (PDF). I recommend reading that report. 

In my eyes, live streaming provides customers and prospects the ability to connect with a brand in an authentic way, gives a brand a personality, and allows people to interact and engage in a way that humanizes the Internet. Also, and very important: the sales per streamed hour can be really impressive.

Before I forget, happy 16th birthday to my son, David, who is an OP reader and my basketball buddy. We’ll be headed to the Golden State vs. Boston game tomorrow evening and watch what Jayson Tatum does to Steve Kerr and the Warriors after being benched during the Olympics.

Here are some good reads to kick us off:

Thank you for subscribing to the OP. If this was sent to you and you’re not a subscriber, you can subscribe for free here.

There will be no OP letter next week. Talk soon.

Darren

The Search to Answer Shift: What Marketers and CEOs Need to Know for 2025

For the past 20 years in the U.S., we’ve largely relied on good old Google to drive organic traffic our way. Sure, Yahoo!, Bing, DuckDuckGo, and a few others contribute, but for most of us, Google consistently accounts for over 70% of our monthly search traffic.

Now, for the first time in two decades, that dominance is under real threat.

So, what’s happening? In short, we’re moving from "Search" to "Answer."

  1. The classic search experience—type a query, get a list of links—is evolving. Years ago, we shifted from hand-curated lists (like David & Jerry’s Guide to the Web) to algorithm-driven results (Google). Now, we’re headed toward zero-click search, where search engines like Google deliver answers directly, keeping users on their own platform. The implications? First, it's crucial to be featured in these search-provided AI answers. Second, we’re likely to see less organic traffic reaching our sites as users find answers on the search engine itself.

  2. We’re seeing real potential for competition in search. While Google still reigns in the U.S., upstarts like Perplexity are gaining attention. They’re still tiny compared to Google, but what if a major player like Yahoo, Apple, Amazon, or Microsoft acquires one of these engines and rolls it out to their massive user base? This could disrupt the landscape—especially if the experience surpasses Google’s.

Why does this matter to us?

As marketers, this shift could change both the composition and volume of our traffic. If organic traffic is our top converter, a downturn in visits from zero-click searches could hurt. The fallback—using SEM budgets to replace organic traffic—might be unsustainable.

As investors, it’s a big deal because the “golden” business model of search—possibly the best ever created—faces a challenge. Google has been the unrivaled leader here for two decades, and while nothing is certain yet, this is the first time a real shakeup seems possible. We know investors often find opportunity in volatility, and this moment could be the start of such an era. But don’t expect Google to give up ground without a fight.

As consumers, it’s an exciting time. The user experience is evolving again, and competition generally benefits us all.

With all this in mind, if you’re a CEO, it’s time to start planning. Organic traffic is valuable and typically drives the highest conversions.

If you’re a CMO and aren’t already considering these shifts, you’re taking a serious risk with your traffic forecasts.

Buckle up; 2025 is shaping up to be a wild year as we move from the era of search to the age of answers.

Below are a few articles I came across this past week that I found interesting. While I may not agree with everything in each one, I think they're worth a read. If you stumble upon an article you think I or the Operating Partner community would enjoy, feel free to share it with me. Of course, I reserve the right to decide what gets featured in the OP.

The 10X Founder (Jeff Bussgang)

Thank you for reading the OP. If someone forwarded this OP to you and you’d like to subscribe for free, you can do so here.

What did you think of today's OP letter?

Login or Subscribe to participate in polls.