First-Party Data: The #1 Competitive Advantage Small Businesses Are Ignoring

First-Party Data: The #1 Competitive Advantage Small Businesses Are Ignoring

First-Party Data: The #1 Competitive Advantage Small Businesses Are Ignoring

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Relevant and accurate data collection drives effective marketing campaigns. But the way audiences engage with brands is changing, and so are their expectations. They want more personalized, relevant communication, something that traditional data sources like cookies or ad platforms can’t always provide. For small businesses, only relying on external platforms like Meta, Google, or other platforms to reach potential customers is becoming riskier.

Privacy regulations are tightening, organic visibility is declining, and paid reach is becoming more expensive. The more reliable approach is first-party data collected directly from the source. This information is accurate, relevant, and owned by your business.

If you’re not already using first-party data in your marketing campaigns or lead generation efforts, you could be missing out on deeper insights that help convert the right audience at the right time. Partnering with a marketing company near you can make it easier to turn that data into a real advantage for your business.

In this article, we’ll explore why first-party data is so valuable and how small businesses can start collecting and using it effectively to build more effective and long term marketing strategies.

What is First-Party Data (and Why Should You Care)?

First-party data is information collected directly from your existing or potential customers through your business website, landing pages, lead capture forms, customer interactions, email marketing, and CRM systems. Unlike third-party data that is bought from external resources or second-party data obtained from business partners, first-party data is more accurate, cost-effective as it’s obtained through platforms you own.

Additionally, tighter privacy regulations, such as the GDPR, have made it more difficult for businesses to access and use customer data through third-party sources. The phase-out of cookies by major platforms like Apple and changing Google policies means you can no longer rely on third-party data to segment and target your customer base effectively.

First-party data offers direct insights from your target audience, helping improve conversion rates and reduce ad cost, keeping your data strategy compliant and in your control.

The Business Case for First-Party Data: Why It’s a Competitive Advantage

First-party data is fast becoming an essential element for building long term marketing strategies and successful customer relationships. Here’s why it matters: 

You Own the Data, Not a Platform

When you collect data through platforms like Google, Facebook, or LinkedIn, you’re working with third-party data, which means external platforms own the audience, not your business. Access is limited, and you’re paying to reach and learn about your target audience. 

With first-party data, your website, lead capture forms, CRM, and other business-owned channels collect contact information and customer insights. Your business retains the ownership, and it’s not shared with other competitors. This first-party data can be leveraged to optimize your sales process and pipeline and lead the traffic from external platforms to your website or landing pages

Better Targeting & Personalization

First-party data gives you a direct connection to qualified leads and potential customers, prospects who have already shown interest in your business.

Your sales team can use this data to identify points where leads drop off in the sales pipeline, for example, why a visitor didn’t complete a form or leave a product in the cart. You also collect:

  • First Party Data: collected from direct customer interactions on business-owned platforms, like user activity, purchases, or email engagement.
  • Zero-party data: gathered from customers who voluntarily share information on their personal preferences in exchange for value-added benefits like loyalty points or discounts.

For example, when a customer signs up for a free webinar on your website, they might provide required details like their contact information, occupation, and business type; this is first-party data. You can also include optional fields asking what challenges they face or what topics they’re most interested in; this is zero-party data. These insights can help your business to segment your target audience more effectively and send personalized follow-ups that match their needs.

Lower Advertising Costs & Higher ROI

Buying external data is expensive, is limited by privacy laws, and your competitors often have access to the same lists.

With first-party data, you can create lookalike audiences, retarget high quality leads, and run email marketing campaigns through your CRM that are more cost-effective and accurate. This gives your business a higher ROI (return on investment) without spending a significant amount of your budget on capturing new leads and conversion strategies. 

If someone subscribes to your newsletter or downloads a lead magnet, you capture a warm lead in your CRM. This gives access to relevant, consent-based data you can leverage. One of our B2B clients used this approach to send a targeted email marketing campaign to cold and previously engaged leads. Using the insights from first-party data, they focused on qualified leads who had already shown interest. This helped them reduce their cost per acquisition by 30% without relying completely on expensive third-party data or ad budgets

using first-party data to run more focused campaigns without heavily depending on third-party data or large ad budgets

A digital marketing or lead generation company can help small businesses use existing assets more effectively, turning interest into action with less spend.

 

Stronger Customer Relationships = Higher Retention

When you understand your customers, you can speak their language, connecting to them on a more personal level. First-party data gives you the leverage to create messaging that speaks to your target audience’s needs and pain points, making them feel valued. This builds long-term relationships and brand loyalty, which can be nurtured with timely offers, relevant updates, and useful content that reflects individual preferences and previous interactions.

For example, A service-based business looked at the services past clients had used, then sent personalized follow-ups offering related add-ons and updates. This re-engaged old clients, making them feel valued and instilling loyalty and confidence in the business. Consistent, personalized customer interactions actioned at the right time in the sales funnel strengthen your brand’s relationship with its customer base, improve retention, and build more long term revenue streams.

How Businesses Can Start Collecting & Leveraging First-Party Data

Before your business can optimize campaigns or lower ad spend, you need to build a reliable database of audience insights. Here’s how you can start collecting and leveraging first-party data for actionable and measurable marketing and lead generation efforts: 

1. Build Your Email & SMS List (It’s More Valuable Than Social Followers)

While social media metrics may seem like a valuable strategy to gain brand awareness and credibility, the number of followers or engagement on your business social media is not always useful for generating leads. Building an email and SMS list offers a direct connection with your customer base, allowing your sales team to engage with them through personalized and consistent brand messaging. 

 

The data gathered from these direct channels can create the foundation for personalized marketing campaigns across your sales funnel, from awareness to conversion. When integrated into a CRM system, it supports ongoing email marketing and lead generation efforts that are far more measurable and effective than relying on algorithm-driven social media reach.

2. Use Your Website as a Data Collection Hub

Your website is an essential space for collecting first-party data. Lead your target audience to your business website through landing pages, paid ads, and content marketing efforts like SEO blogs or value-based resources. Use tools like chatbots, FAQs, downloadable guides, and lead capture forms to drive engagement. These interactions help your business gather relevant data to personalize marketing and strengthen your sales funnel.

Tracking visitor behavior helps you identify qualified leads and optimize your sales process based on your customer’s unique journey, for example, how and where they engage or are persuaded to act. These insights can guide your marketing campaigns, generating leads to yield more positive results with higher ROI. 

3. Segment & Activate First-Party Data for Better Marketing

Not all visitors have the same level of interest. To make your remarketing ads more effective, segment your audience based on their actions, for example, website visitors who browsed but didn’t take action, or users who looked at a specific product or service page. People who put products in their cart but didn’t complete the purchase or past customers are also hot leads that can be targeted through remarketing campaigns. These segments can be used to personalize messaging, improving conversion rates and creating more relevant experiences for every type of lead.

4. Create Lookalike Audiences for Paid Ads

With insights from your brand loyal and engaged users, you can build lookalike audiences to expand reach while maintaining relevance. These audiences reflect the behavior and interests of your existing customers, giving your ads a higher chance of reaching high quality leads.

5. Implement CRM & Automation for Scale

It’s a common challenge, especially for small businesses, to get overwhelmed by massive amounts of data. A CRM helps structure this data into usable segments, while automation allows you to act on it at the right time, aligning the data with your marketing campaign for a consistent, well planned strategy that keeps moving. For example, automated follow-ups or reminders triggered by inactivity can re-engage leads without manual input.

Partnering with a digital marketing company offering lead generation services can help you build scalable systems that consistently generate qualified leads and move them through your sales pipeline. Platforms like HubSpot, Klaviyo, or GoHighLevel let you track, nurture, and convert leads using personalized automation, from emails to SMS,  keeping your content marketing efforts aligned and responsive.

 

Overcoming the Challenges of First-Party Data Collection

Many small businesses struggle to turn first-party data into real results. Here are three common roadblocks and actionable ways to move past them.

Challenge #1: “We don’t have enough data.” → Start with what you have, for example, email signup, subscriptions, or contact forms on your website. Add to your data collection strategies by integrating customer surveys to gather valuable feedback on customer preferences and issues. This data can be used to create segmented email lists to target qualified leads and re-engage customers.

Challenge #2: “Our customers won’t share their data.” → Offer value in exchange. Offer early access to sales, free downloads, loyalty rewards, or exclusive educational content. Tie the offer to their interests or pain points, giving them an incentive to willingly share their information.

Challenge #3: “We don’t know how to use it.” → Use tools like HubSpot or GoHighLevel to help you tag, segment, and respond to customer actions with timely emails, SMS, or remarketing. Alternatively, searching for a “marketing company near me” can help you find a local digital marketing or lead generation company to effectively utilize your CRM tools to analyze and activate the data. 

Ready to take action? Let’s have a conversation

Future-Proof Your Marketing with First-Party Data

As browsers phase out third-party cookies and privacy laws like the GDPR limit how data can be collected and shared, relying on external platforms for customer insights is no longer a reliable strategy. Businesses need to build their own first-party data systems and customer interactions that they directly manage. This shift gives your business the competitive edge, with more control, reduced marketing costs, and stronger customer relationships for higher retention and better results from your marketing and lead generation efforts.

Need help with your first party data collection strategy? 

Partner with a marketing company near you so you can focus on running your business while experts handle your data strategies and digital presence, helping you stay ahead of the competition and achieve long-term success.

We hope the information and tips above help you choose the right digital marketing company for your business. Have more questions about partnering with an agency? Reach out to us directly.

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Meet the Author

Liz Hersh is the founder of Hersh PR and Marketing, a digital marketing agency. Together with a team of marketing professionals she helps clients generate leads and increase revenue. 

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The Future of Lead Generation: How Companies Can Stay Ahead in 2025

The Future of Lead Generation: How Companies Can Stay Ahead in 2025

How can businesses compete in an overcrowded digital market and build a lead generation system that consistently drives traffic, nurtures prospects, and delivers results? This article explores the latest trends in lead generation and how working with a digital marketing company can help businesses build a data-driven approach to sustainable growth

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The Future of Lead Generation: How Companies Can Stay Ahead in 2025

The Future of Lead Generation: How Companies Can Stay Ahead in 2025

The Future of Lead Generation: How Companies Can Stay Ahead in 2025

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Lead generation remains one of the biggest challenges for businesses today, whether it’s attracting potential customers or converting them into qualified leads. Many still rely on cold calls, generic email marketing, and underwhelming social media posts , but these outdated tactics often fail to deliver high quality leads. The time and money spent on ineffective strategies can slow down the sales process and weaken conversion rates.

So, how can businesses compete in an overcrowded digital market and build a lead generation system that consistently drives traffic, nurtures prospects, and delivers results? 

The answer lies in adapting to changing consumer behavior, stricter data privacy laws, and AI-driven marketing. Companies that refine their sales funnel, optimize their marketing campaigns, and leverage smarter lead generation services will gain a competitive edge.

From personalized content marketing to AI-powered automation and CRM-integrated email marketing, businesses need to rethink their sales pipeline so they can connect with their target audience at the right time and capture leads that convert.

This article explores the latest trends in lead generation and how working with a digital marketing company near you or a specialized lead generation company can help businesses build a scalable, data-driven approach to sustainable growth.

5 Lead Generation Trends to Stay Ahead in 2025

The way businesses generate leads is evolving rapidly, and staying ahead requires a more strategic and data-driven approach. Traditional methods are no longer enough to capture and convert today’s customers. Instead, your business must refine its lead generation efforts to ensure you are engaging with your target audience

A strong lead generation strategy begins with capturing a potential customer’s information early in the sales process. This allows you to guide them through the sales funnel rather than leaving their decision making to chance.  Focusing on qualified leads that are most likely to convert is essential to optimizing your sales pipeline and boosting conversion rates

To generate high quality leads, your business must integrate targeted strategies such as optimized landing pages, value driven content marketing, and lead capture forms that nurture prospects effectively. 

Here are some key lead generation trends to stay ahead in 2025: 

Trend #1: The Rise of AI-Driven Lead Generation

Before AI, lead generation was a manual and time-consuming process, requiring businesses to sift through vast amounts of data to identify high quality leads. Now, AI automates data analysis, provides data-driven insights, and predicts customer behavior with greater accuracy. Instead of depending solely on human intuition, you can use AI powered analytics to target high quality leads and personalize interactions more effectively.

AI is transforming lead generation by making it more efficient and precise, driving better  lead generation results with:

  • AI-powered lead scoring tools: Assess engagement levels by analyzing email opens, website visits, and content downloads. This helps businesses prioritize the most promising prospects.

  • Predictive analytics: Use historical data to determine the best timing and approach for outreach, increasing the chances of conversion.

  • AI-driven automation: Streamlines follow-ups by tracking customer interactions and recommending personalized next steps for sales teams.

AI-driven tools like predictive analytics and machine learning help businesses identify qualified leads faster. These technologies analyze customer behavior, past interactions, and demographic data to score leads and create more targeted lead generation and outreach campaigns. 

For example, AI-powered sales intelligence platforms track past purchase history and online activity to determine the best moment for outreach. This helps the sales teams focus on prospects with the highest conversion potential, optimizing efficiency and the sales process. Platforms like HubSpot, Salesforce, and Zoho CRM integrate AI to automate follow-ups, analyze customer interactions, and recommend personalized next steps.

Want to learn more about leveraging the automation and efficiency of AI and combining it with human insights and talent to create targeted, personalized marketing strategies that deliver results? Read our latest blog on AI and SEO:

Trend #2: First-Party Data Is Now a Must-Have

Previously, businesses relied on third-party data such as information collected from external sources such as cookies, public records, and online databases to analyze customer behavior and create profiles for marketing campaigns. However, with the phaseout of third party cookies and stricter data privacy laws like GDPR and CCPA, businesses that depend on rented audiences, such as social media followers or third party databases, risk losing direct access to potential customers.

To build a more sustainable and compliant approach, companies are shifting toward first-party data that includes information collected directly from their customer base and internal sources through channels like email marketing, CRM systems, and website analytics. First-party data is more accurate, and privacy compliant, and allows businesses to create personalized marketing experiences that improve conversion rates.

Businesses can leverage first party data to: 

  • Build an email list by offering valuable content (eBooks, webinars, discounts) in exchange for contact details. This helps in generating leads and nurturing them through the sales funnel.

  • Use your CRM system to track customer interactions, preferences, and purchase history and segment your target audience. Investing in a robust CRM ensures your data is well-organized and easily accessible, allowing your sales team to make data-driven decisions and improve lead generation efforts.

  • Optimize landing pages with lead capture forms and gated content to collect high quality leads while delivering value.

For example, if a potential customer fills out a lead capture form on a business’s website, their contact information can be used to personalize marketing campaigns and guide them through the sales pipeline. Or customers who provide information on social media by leaving a comment or inquiry offer direct access to them or their information. Businesses that invest in first-party data strategies create a qualified leads database that strengthens long-term relationships and improves the sales process.

Need more tips on collecting and utilizing first party data for your lead generation efforts or marketing campaigns? Learn more here:

Trend #3: Personalization at Scale

Modern consumers expect personalized experiences that make them feel valued and engaged. While automation has made lead generation services more efficient, it often lacks the personal touch needed to build strong connections with your target market. The challenge for businesses is finding a way to scale personalized marketing campaigns without overwhelming their sales team with excessive data and manual tasks.

For example, Account-based marketing (ABM), uses AI to identify qualified leads within high-value companies and tailor outreach to decision-makers. This approach ensures marketing efforts focus on the right customers at the right time, leading to more meaningful engagement and higher chances of conversion. For small businesses looking to attract qualified leads locally, working with a digital marketing company near you can help leverage these insights to refine personalization strategies, improving your local SEO strategy to drive organic traffic and lead generation efforts

Here are a few techniques that can help your business with scalable personalization for improved lead generation efforts:

  • Dynamic Website Content: Platforms like HubSpot tailor website experiences based on visitor behavior, showing relevant content based on past interactions.

  • AI-Driven Email Segmentation: Instead of sending mass emails, AI segments contact lists based on customer preferences, industry, and previous engagement.

  • Personalized Content Marketing: Customizing email marketing, ads, and social media campaigns ensures businesses connect with high quality leads more effectively.

  • Behavior-Based Targeting: Use data from website analytics, email opens, and social media interactions to refine messaging and improve conversion rates.

  • ABM Strategies: Focus on high-value accounts and tailor lead generation campaigns to engage key stakeholders involved in purchasing decisions.

These strategies can help your business build stronger relationships with customers and create marketing campaigns that connect and engage with potential prospects.  

Trend #4: The Death of Traditional Cold Outreach (And What’s Replacing It)

Cold emails and generic LinkedIn messages have usually been the most common practice for lead generation services, but these impersonal tactics are now becoming less effective. Today’s customers expect meaningful interactions and value driven conversations that foster trust and long-term relationships. Instead of generic sales pitches, modern lead generation services focus on strategic engagement that nurtures high quality leads and improves conversion rates.

Replace generic cold outreach with:

  • Warm Introductions: Referrals, partner networks, and industry connections for organic introductions and network expansion create trust and have a higher chance of potential leads responding. For example, asking for a mutual connection for an introduction to a prospective client of a key contact can improve response rates and build credibility. Working with influencers or reputable people in the same industry can also establish you as a credible expert in your field. 

  • LinkedIn Thought Leadership: Rather than sending unsolicited messages, position your leaders as industry experts by sharing insightful content marketing on LinkedIn. A well-crafted LinkedIn presence can attract potential clients and generate quality leads naturally.

  • Community-Driven Engagement: Actively participating in online communities (such as Slack groups, LinkedIn groups, or industry forums) allows you to build trust before making a sales pitch. Engaging with your target audience in discussions, answering questions, and providing helpful resources position your brand as a knowledgeable and trustworthy partner.

Here are a few ways you can optimize your outbound sales approach: 

  • Personalized Prospecting: Research potential customers’ pain points, challenges, and industry trends to create outreach messages that feel relevant and customized to your target audience

  • Value-First Approach: Rather than leading with a sales pitch, offer incentives such as valuable insights, free consultations, or exclusive resources that highlight your expertise.

  • Strategic Follow-Ups: Effective follow-ups should add new value rather than simply reminding prospects about your initial message. This keeps engagement high without feeling pushy.

Shifting from generic cold outreach to relationship driven strategies can help build trust, nurture high quality leads, and drive sustainable growth. 

Ready to take action? Let’s have a conversation

Trend #5: Video & Interactive Content Are Driving Conversions

Did you know that 84% of people say a brand’s video influenced their purchasing decision? In 2025, lead generation services must focus on quick, engaging, and interactive content to capture qualified leads and drive conversion rates, especially for small businesses. With shrinking attention spans and mobile browsing dominating the market, long, text heavy content is often passed by in favor of short, engaging videos. 

Short videos, explainer content, and interactive tools help potential customers understand your products or services faster, moving them through the sales funnel more efficiently. For example, a brief explainer video can demonstrate how your business solves a common pain point, while interactive tools like quizzes or ROI calculators provide personalized insights that encourage action. 

Businesses that integrate these strategies into their marketing campaigns see higher engagement, stronger connections with their target audience, and improved lead generation efforts.

Here are a few ways your business can use video and interactive content for lead generation: 

  • Short-Form Video: Platforms like TikTok, LinkedIn Video, and YouTube Shorts help businesses deliver concise, high-impact insights that attract high quality leads.

  • Webinars & Live Q&As: Hosting interactive sessions allows businesses to provide value while collecting contact information from engaged prospects. This is also an effective way to collect first party data mentioned in Trend 2. 

  • ROI Calculators & Quizzes: Interactive tools encourage participation, provide valuable insights, and help businesses refine their lead generation, content marketing, and local SEO strategies.

  • Landing Pages with Video: Adding video to landing pages increases conversion rates by providing a clear, engaging path for potential customers to take action. Including explainer videos on your website or social media showcasing your products or services can make visitors more confident in making a purchase. Featuring team introductions or behind the scenes content adds a personal touch, building trust and making your brand more relatable – increasing the likelihood of getting their contact information and getting more qualified leads

In 2025, businesses should focus on creating high quality, engaging content to connect with their target audiences. Utilizing interactive content like quizzes and assessments or incentives with contests can help keep prospects engaged while allowing you to collect valuable data for follow ups and personalized lead generation efforts. 

Working with a lead generation or a marketing company near you can help implement these strategies effectively, helping you attract qualified leads that expand your customer base while optimizing your sales funnel for higher conversion rates and long term growth.

The Lead Gen Playbook for 2025

With AI-driven search engines, machine learning, and technological advancements transforming the industry, B2B lead generation is evolving rapidly. Businesses still relying on outdated lead generation strategies are losing market share to competitors who are embracing data-driven marketing campaigns and automation.

The key to success lies in:

  • Using AI powered automation to streamline lead qualification and optimize the sales process.

  • Building first-party data assets to reduce reliance on third-party sources and improve customer base insights.

  • Personalizing content marketing efforts at scale with ABM and AI driven target audience segmentation.

  • Replacing ineffective cold outreach with thought leadership and relationship driven engagement to attract potential customers.

  • Incorporating video marketing and interactive content to improve conversion rates and capture high-quality leads.

 

Businesses that want to stay ahead in 2025 must rethink their lead generation efforts. A digital marketing company specializing in lead generation services can help your businesses integrate AI powered marketing, improve email marketing strategies through CRM, and develop engaging landing pages with lead capture forms to drive measurable results.

Looking for a marketing company near you that understands the latest lead generation trends and can optimize your sales funnel to attract qualified leads?

Partner with a lead generation company so you can focus on running your business while experts handle your digital presence, helping you stay ahead of the competition and achieve long-term success.

We hope the tips above are helpful in improving your digital campaigns. Have more questions about partnering with an agency? Reach out to us directly.

Liz-headshot

Meet the Author

Liz Hersh is the founder of Hersh PR and Marketing, a digital marketing agency. Together with a team of marketing professionals she helps clients generate leads and increase revenue. 

Read 
More Articles.

Read 
More Articles.

The Future of Lead Generation: How Companies Can Stay Ahead in 2025

The Future of Lead Generation: How Companies Can Stay Ahead in 2025

How can businesses compete in an overcrowded digital market and build a lead generation system that consistently drives traffic, nurtures prospects, and delivers results? This article explores the latest trends in lead generation and how working with a digital marketing company can help businesses build a data-driven approach to sustainable growth

read more

Subscribe to Get The Latest Insights.

What makes marketing so challenging?

Trying to keep-up with the tools, technology and the limited attention span of your target market are all challenging. Get our tips on how to grow leads and revenue, delivered directly to your inbox.

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The Role of AI in SEO: What’s Changing in 2025?

The Role of AI in SEO: What’s Changing in 2025?

The Role of AI in SEO: What’s Changing in 2025?

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AI isn’t new, but its impact on digital marketing has exploded in just a few short years. Media outlets started using AI-generated content for sports and weather reporting in the mid-2010s, and chatbots have leveraged machine learning for nearly just as long. But everything changed in late 2022 when ChatGPT hit the scene. AI and Machine learning was suddenly available to the masses and became a daily tool for digital marketing firms and local SEO agencies.

Today, AI is helping with everything from content creation and keyword research to analyzing search results and speeding up content optimization. But let’s be real. Just because AI can assist with blog posts or crunch SEO data doesn’t mean it can replace human expertise. You still need strategy. You still need context. You still need a pulse on what actually moves the needle in real-world marketing.

In this article, we’ll break down how AI is reshaping local SEO in 2025 — and how smart businesses are combining AI efficiency with human insight to stay visible and competitive with their SEO strategies. 

AI-Generated Content: Assistance, Not Replacement

Content optimization with relevant keywords is essential for ranking high in search engine results. However, the growing accessibility of AI-powered tools like Claude, ChatGPT, Gemini, Surfer SEO, Frase, and DeepSeek has led to a massive increase in AI-generated content. While AI tools can speed up writing and automate tasks, they often produce generic, keyword stuffed content that lacks depth and fails to gauge user intent, directly contradicting Google’s emphasis on relevant, high-quality content.

Google’s continued emphasis on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness) remains a key ranking factor. To perform well in search engine results, content must provide real value to users, with keywords strategically placed to match user intent rather than just search volume. While AI-generated content can help businesses appear in more searches, ranking alone isn’t enough. Users won’t stay on a website or engage if the content lacks depth and relevance.

AI does not have human creativity, industry expertise, or personal insights to make content engaging and authoritative. This is especially important in Local SEO, where understanding a community’s specific language, culture, and search behaviors is pivotal for driving local search results and attracting potential customers.

While AI is an invaluable tool for improving efficiency and automating time consuming tasks in digital marketing, human expertise is still essential for refining and personalizing content, natural keyword integration, and maintaining brand voice and consistency. 

Best practices to rank high in search results involve combining AI efficiency with human expertise. In our experience, AI is a great tool for ideation and drafting, but human editors are essential to refine and create authentic, engaging, and helpful content. A human touch ensures content aligns with effective SEO strategies tailored to your audience and goals.

AI in Search Algorithms: Google’s Evolving Approach

Before AI, users relied on short- and long-tail keywords to find relevant information. For example, a short-tail keyword like “local SEO agency” or “digital marketing services”  are broad and competitive, while a long-tail keyword such as “best local SEO agency near me for small businesses” is more specific and intent-driven. Users would manually scan multiple search results to find the most relevant answer. Now, AI powered search engines generate instant summaries before showing ads and organic search results.

Google’s Search Generative Experience (SGE) provides AI-generated responses directly in answer to the user’s query. While this improves user experience, it has reduced the visibility of organic search listings, leading to lower click-through rates for many small businesses. With fewer users clicking beyond AI-generated summaries, digital marketing firms and local SEO agencies are adapting their SEO strategies to drive organic traffic and boost search rankings. 

AI is also automating critical SEO tasks, including site audits, meta tag optimization, and schema markup. Tools like Google Search Console, Screaming Frog, and Botify are streamlining technical SEO processes, improving efficiency for businesses. However, while AI can analyze vast amounts of search data, it still requires SEO experts to interpret findings, make strategic decisions, and optimize the overall website experience.

Here’s how local SEO experts are optimizing for AI-driven search:

  • Target featured snippets – Create concise, high-value content that provides direct answers and encourages users to visit the page for more details.

  • Enhancing structured data – Implementing schema markup to help search engines better understand and display website content.

  • Optimize metadata – Ensure titles, URLs, and meta descriptions include relevant keywords to improve visibility in search engine results.

  • Create in-depth, value-driven content – Integrate unique insights, human experiences, and expertise that AI-generated content cannot replicate.

  • Build brand authority and trust – Strengthen credibility to encourage repeat visits and improve customer retention.

As AI continues to evolve, businesses must focus on high-quality content, structured data, and user engagement to stay visible. While automation improves efficiency, human expertise is essential for making sense of the data, refining strategies, and ensuring content remains relevant, trustworthy, and user-focused.

AI and Keyword Research: Smarter, Not Simpler

AI SEO tools like Semrush, Ahrefs, and RankIQ have refined keyword research, making it easier to analyze search intent and competition. However, human expertise is still essential to interpret data accurately and connect insights with brand voice and customer needs.

Using high-volume keywords without understanding user intent or conducting target audience research won’t guarantee higher search engine rankings. Instead, ongoing SEO audits and continuous refinement of SEO strategies are necessary to maintain rankings, retain customers, and attract new ones.

Digital marketing firms and local SEO agencies provide a comprehensive approach that goes beyond AI generated keyword research and content creation to deliver real and measurable results. Here’s why:

  • Overloading content with high volume keywords while neglecting long-tail keywords can cause businesses to miss out on high-value leads. Instead of standing out, they risk blending into an oversaturated market filled with generic content. Human insight and strategic thinking are key to effective keyword integration, ensuring content remains relevant and engaging. 

  • Customer feedback reveals pain points, preferences, and market gaps that AI may not be able to identify. A successful SEO strategy requires this human insight to analyze this data and create personalized marketing strategies. 

  • Unedited, AI generated content can sound awkward and robotic. Manual refinement ensures that content is clear, engaging, and optimized for both search engines and users.

The Impact of AI on Local & Voice Search

AI powered voice assistants like Siri, Alexa, and Google Assistant have changed how people search for information. Instead of singular keywords, users now phrase queries in a conversational and more natural language. This shift means businesses must optimize their content for natural language processing, focusing on user intent to improve local search engine results.

AI enhanced personalization has also affected local SEO, requiring businesses to develop an SEO strategy that delivers more hyper-localized results based on intent-driven traffic and location.

To stay competitive, local SEO agencies are adapting by:

  • Optimizing for natural language search and voice queries to align with how users ask questions.

  • Keeping a business’s Google Business Profile updated with localized content, including contact details, directions, reviews, and posts to attract potential customers nearby.

  • Creating question-and-answer content such as FAQs to provide relevant responses for verbal search queries.

A local SEO agency offers comprehensive digital marketing services that help businesses navigate these evolving SEO strategies, helping leverage AI driven advancements to improve search engine rankings and attract high-value leads.

AI in Link Building & Digital PR

An effective SEO strategy incorporates on-page, off-page, and technical SEO to improve search engine rankings. This includes keyword research, high-quality content, meta tags, URL and title optimization, and internal and backlinks that drive traffic to your website and digital content.

AI can assist with backlink analysis by evaluating the quality and quantity of inbound links, identifying potential outreach opportunities to streamline digital PR efforts. AI tools can help research high-authority sites for link-building and automate aspects of prospecting, making it easier to connect with relevant platforms.

However, while AI enhances efficiency by handling research and data analysis, relationship building remains a human-driven process. Establishing credibility, fostering connections with industry influencers and journalists, and maintaining a strong brand image require human expertise. Genuine outreach, trust, and reputation management are beyond AI’s capabilities, making human involvement essential for long-term SEO success.

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The Future of AI in SEO: What Businesses Should Do Now

As AI continues to advance, businesses must remember that AI is a tool, not a strategy. Human creativity, strategic thinking, and real-world insights remain vital for success. 

Here’s what businesses should focus on in 2025:

1. Prioritize E-E-A-T: Build trust, credibility, and brand authority by creating content that demonstrates expertise and experience.

2. Optimize for AI-powered search: Focus on conversational content, structured data, and personalized engagement to work optimally with AI driven search experiences.

3. Combine AI and human expertise: Let AI handle data and automation, but keep humans in control of the message and strategy.

Leverage AI and the Human Edge for an Effective Local SEO Strategy

AI advancements in recent years have changed how SEO is done, automating tasks like keyword research, content optimization, and technical audits. While AI improves efficiency, it still lacks human creativity, critical thinking, and the ability to connect with audiences on a deeper level. Businesses must combine AI driven efficiency with human expertise to create high-quality content, stay competitive, and keep up with evolving AI SEO trends.

Sounds overwhelming?

Partner with a local SEO agency so you can focus on running your business while experts handle your digital presence, helping you stay ahead of the competition and achieve long-term success.

We hope the tips above are helpful in improving your digital campaigns. Have more questions about partnering with an agency? Reach out to us directly.

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Meet the Author

Liz Hersh is the founder of Hersh PR and Marketing, a digital marketing agency. Together with a team of marketing professionals she helps clients generate leads and increase revenue. 

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The Future of Lead Generation: How Companies Can Stay Ahead in 2025

The Future of Lead Generation: How Companies Can Stay Ahead in 2025

How can businesses compete in an overcrowded digital market and build a lead generation system that consistently drives traffic, nurtures prospects, and delivers results? This article explores the latest trends in lead generation and how working with a digital marketing company can help businesses build a data-driven approach to sustainable growth

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