Comment by empiko
2 days ago
Another reason why social media matters is that people actually spend their free time in all those feeds. On the other hand, using LLMs is much more oriented towards specific utilities. Having 1B users who visit you once a day to ask for an email proofread will not make you profitable.
But, like search, it captures intent to buy much better, while looking at feeds for internatinment does not. Adwords worked because of that, they could capture ad revenue on queries that lead to sales. The amount of extra context in AI chat is even better, as is the ability to steer the conversation to different options.
No one spends their free time on Google search either. Didn't stop Google from being even more profitable than Meta.