The End of Search: Small and Medium Enterprises Spending 300,000 Yen Monthly on SEO Should Stop and Reflect Immediately

The End of Search: Small and Medium Enterprises Spending 300,000 Yen Monthly on SEO Should Stop and Reflect Immediately

By Kai

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The End of Search: Small and Medium Enterprises Spending 300,000 Yen Monthly on SEO Should Stop and Reflect Immediately

Last week, three significant news items emerged:

  • Spotify introduced an AI chatbot called “Talk to Spotify” for premium users, allowing them to find music and podcasts simply by having a conversation.
  • Google Image Search launched a Pinterest-style “For You” gallery, where AI presents “things you might like” before users even search.
  • OpenAI is developing a screenless smart speaker that provides information just by talking to ChatGPT.

While these news items may seem unrelated, they share a common thread.

The act of “typing keywords into a search box” is on the verge of disappearing.

This is not just a distant issue for local small and medium enterprises (SMEs). Many SMEs design their web marketing strategies based on the assumption that they will be “searched for.” SEO measures, listing ads, and MEO—all rely on the premise that “someone will enter keywords into a search box.”

What happens if that very premise disappears?

SEO Costs of 300,000 Yen: Who Is It Reaching?

First, let’s clarify the current situation.

When local SMEs outsource their SEO efforts, the going rate is typically between 100,000 to 300,000 yen per month. If they also use listing ads, advertising costs alone can range from 200,000 to 500,000 yen. It is not uncommon for companies to spend a total of 500,000 to 800,000 yen monthly on web marketing, amounting to 6 million to 9.6 million yen annually.

The underlying assumption of this investment is that “users will search on Google.” If a business appears on the first page of search results, it will receive clicks and inquiries. This model has functioned for the past 20 years.

However, changes have already begun.

According to Gartner’s predictions, traditional search engine traffic is expected to decline by 25% by 2026. A study by SparkToro found that about 60% of Google searches end without a click (the so-called zero-click searches). Users receive answers directly from AI, eliminating the need to visit websites.

Even if you invest 300,000 yen in SEO to rank high, the reality is that your site may not be clicked at all. This is a reality that needs to be faced.

The Change Indicated by Spotify: “Consumption Without Search”

Let’s take a look at Spotify’s “Talk to Spotify.” Users can simply say, “I want calm music for a rainy day,” and a playlist is generated. There’s no need for keyword searches, and users don’t even need to know the names of artists.

While this pertains to music, the structure is the same.

Instead of typing “Shibuya cafe quiet” into a search box, one could ask AI, “Please tell me a place where I can have a calm conversation with my friend right now.” AI responds with a single answer rather than a list of search results.

What occurs here is a shift from “choosing from ten options” to “accepting one option selected by AI.”

It becomes meaningless to rank third on the first page of SEO. The question is whether you make it into the “one option” recommended by AI. The criteria for this are entirely different from Google’s search algorithms.

It’s unlikely that many SMEs are advertising on Spotify. However, the problem lies in the fact that this pattern of “consumption without search” is spreading across all platforms.

Google Image Search Becomes More Like Pinterest: From “Searching” to “Browsing”

Google’s image search has introduced the “For You” gallery. This concept is similar to Pinterest, displaying a feed of “images you might be interested in” without requiring users to search.

What changes?

User behavior shifts from “searching” to “browsing.”

“Searching” involves a clear intent. Someone searching for “Nagoya exterior wall painting cost” is considering exterior wall painting, making listing ads effective.

On the other hand, “browsing” lacks a clear intent. Users casually scroll and tap on whatever catches their eye. Winning in this scenario relies not on optimizing for search keywords but on “visuals that catch the eye instantly.”

For local SMEs, this presents both a threat and an opportunity.

Threat: The value of traditional SEO text content diminishes. Blog articles that cost 200,000 yen to produce become virtually nonexistent in a world dominated by image feeds.

Opportunity: The cost of producing visual content has drastically decreased. Canva is free, and generating images with AI costs just a few yen per image. Banners that once cost 50,000 yen to order from a design company can now be created in-house in ten minutes. In a realm where costs have dropped to one-hundredth, the gap between large and small enterprises diminishes.

What OpenAI’s Speaker Means: Attracting Customers in a “Screenless World”

OpenAI is developing a screenless device. Without a screen, search result lists are not displayed. If a user asks, “Please tell me a reputable chiropractor nearby,” AI will respond with one or two business names and that’s it.

What we should consider here is what basis AI uses to recommend those businesses.

Currently understood factors include:

  • Google’s review ratings and number of reviews
  • Structured data (whether hours, address, and service details are accurately organized)
  • The volume and context of mentions online (how they are discussed on social media, blogs, and media)

In other words, the competition will be based on “the quality and quantity of information trusted by AI” rather than SEO rankings.

This is good news for SMEs. Why?

It’s challenging to compete with large enterprises in SEO. They outmatch SMEs in domain power, backlinks, and content volume. However, when it comes to “the quality of reviews,” “local reputation,” and “actual service quality,” there are plenty of SMEs that can outperform large corporations.

In a screenless world, there are no advertising slots. There are no positions that can be bought with money. Instead, businesses that genuinely provide good services will be recommended by AI. This represents a structural reversal.

So, How Much Will Change?

Let’s calculate potential cost changes concretely.

Current Monthly Cost Example (Search-Premise Model):

  • SEO Outsourcing: 200,000 yen
  • Listing Ads: 300,000 yen
  • MEO Measures: 50,000 yen
  • Blog Article Production: 100,000 yen
  • Total: 650,000 yen (Annual: 7.8 million yen)

Cost Example After the Disappearance of Search:

  • Structured Data Maintenance / Google Business Profile Optimization: 30,000 yen per month
  • Mechanism for Acquiring Reviews (QR Code Installation, Automated Follow-up Requests): 10,000 yen per month
  • Visual Content Production (In-house using AI): 20,000 yen per month
  • Social Media Management (Short Videos / Image Posts): 50,000 yen per month
  • AI Search Measures (Ensuring Accuracy of Company Information, Structuring FAQs): 30,000 yen per month
  • Total: 140,000 yen (Annual: 1.68 million yen)

Difference: 510,000 yen per month, 6.12 million yen in annual cost reduction.

Of course, this is a simple estimate. It varies by industry and region. However, the direction is clear: the shift from “buying search slots” to “creating a state of being recommended by AI” fundamentally changes the cost structure.

Three Things SMEs Should Do Today

Before discussing larger strategies, there are actions that can be taken today.

1. Perfect Your Google Business Profile
Ensure that your business hours, services, photos, and Q&A are all up-to-date and accurate. This is the primary source from which AI gathers information. The cost is zero, and it takes about an hour.

2. Systematically Gather Reviews
Create a system to automatically send review requests via LINE or SMS after providing services. Using tools, this can cost just a few thousand yen per month. Instead of relying on personal requests, ensure that all customers receive automated requests.

3. Organize Your Company Information in a Way That AI Can Read
Incorporate FAQ structured data into your website. Make it easy for AI to understand “what services you provide,” “at what cost,” and “in which areas.” If you use WordPress, this can be done in 30 minutes with a plugin.

All of these can be started today with minimal costs.

The “Disappearance of Search” is a Tailwind for SMEs

Hearing that search is disappearing might cause anxiety. However, I urge you to calmly examine the structure.

The world of search operated on the principle that “players who can pay for advertising win.” If large corporations invest hundreds of thousands of yen in advertising each month, SMEs are pushed to the second page of search results.

The world of AI recommendations is moving closer to a structure where “players providing genuinely good services are chosen.” Reviews, reputation, and actual performance—these cannot be bought with money. It is the diligent SMEs that stand to gain.

The potential for web marketing costs to drop from 7.8 million yen to 1.68 million yen annually is significant. With the saved 6.12 million yen, you can further enhance the quality of your services. This could lead to an increase in reviews and further recommendations by AI. Whether you can create this virtuous cycle will be the dividing line for the next five years.

There’s no need to wait for search to disappear. The change has already begun.

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