3 Dec 2024

Google is slowly losing ground in search ads - by Chartr

While Google’s latest woes seem to center on the DOJ’s antitrust efforts, the search-engine giant may soon face another — perhaps even greater — threat to its moat: losing its dominance in search ads. In 2023, Google earned over $175 billion (or 57% of Alphabet’s total sales) solely from search advertising. However, Google is gradually losing ground in the $300 billion-strong global market for search ads, as both users and advertisers shift to competitors like Amazon and AI tools, The Wall Street Journal reports. According to data from eMarketer, Google’s share of the search-advertising market is forecast to drop below 50% next year for the first time since tracking began in 2008, with revenue growing at a modest 7.6% year over year. Meanwhile, Amazon’s search-ad revenue surged by 17.6% over the same period. Indeed, users are increasingly turning to platforms like Amazon or TikTok for their shopping searches and general queries, according to WSJ. The seemingly inevitable rise of AI is also playing a role: a survey from New Street Research found that nearly 60% of US consumers used a chatbot to help them decide on a purchase in the past 30 days. Source: Chartr, WSJ

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