Digiday’s Post

If 9 out of 10 searches still happen on Google, why is their share of the search ad market dipping below 50% for the first time ever? 🤔 This time last year (Q4 2023), search ad impressions in the U.S. decreased by roughly 15% year-over-year, and clicks were down 8%. The trend didn't get much better in 2024, with Q3 showing modest click growth of 3%, hinting that impressions were relatively flat year-over-year (exact figure not readily available). 👀 At the same time, U.S. Google search ad spend is set to grow 11% in 2024. So, what's forcing brands to pay more to get less?...The scariest competition Google has ever seen. 😱 And it’s not just ChatGPT, there's a lot more at play here. Let's break them down... 1️⃣ Amazon's Rise Amazon now quietly owns 22% of the search ad market. Their ad business is barely a decade old...Think about that for a second! 2️⃣ Social Search More consumers are using platforms like TikTok, Instagram, Facebook, and LinkedIn to search for information. In fact, 45% of Gen Z users now prefer using social media when searching for information vs traditional search engines. 3️⃣ Google's Own AI Google's AI search tools shows users results without them needing to click. While this function can help future-proof Google's search business, it may come at the cost of traditional ad revenue. Classic innovator's dilemma. 4️⃣ The “Authenticity” Factor Let’s face it—Google search is filled with more ad spam than ever. In a world craving authentic content, users are shifting to content that's EARNED its way up the ranks, thru ORGANIC value. 2025 could be the most important year for search advertising since it was invented. Get your popcorn and enjoy the show! 🍿 📌 Sources linked in comments…

Fragmentation of search advertising & shifting search behavior https://lnkd.in/dSn4WKT7 The search advertising landscape is set for significant changes this year, influenced by the emergence of AI-powered search platforms like Perplexity AI and social media search ads, particularly on TikTok. There are also discussions about potential search ads on platforms like Reddit and Amazon's chatbot, Rufus. TikTok has emerged as a significant search platform, with users seeking recipes and product reviews, while Perplexity AI has introduced ad offerings. Reddit has launched an AI feature called Reddit Answers but has not confirmed any search ad plans. Google continues to innovate within its ad business, recently introducing ads in AI overviews and Google Lens. As search behavior shifts from keyword-based to more conversational queries due to generative AI, competitors are positioning themselves to capture market share from Google. Traditional search was projected to generate over $90 billion in U.S. ad spend last year, while social media was expected to bring in over $86 billion. Marketers are prepared for a fragmented search ad landscape by understanding intent-based searches, investing in organic channels, and experimenting with new tools as they emerge. The market remains unsettled, with various platforms vying for dominance in the evolving search ad space.

“Marketers are paying closer attention to the changes in AI-powered and social search, already piecing together a retooled approach to search ads this year,” Stasia Fulginiti, our paid search expert, tells Digiday. Explore how AI and social media giants are reshaping how we advertise on search platforms. From Google's challenges to TikTok's rise and the buzz around Reddit, Inc. and Amazon's AI, discover what's next for marketers in a fragmented search world from industry experts.

WSJ: Google’s Grip On Search Slips as TikTok and AI Start-up amount Challenges….Google’s grip on the nearly $300 billion search advertising business is loosening. For years, the tech giant has seemed invincible in this corner of the ad market, which is the foundation of its business. Now, rivals are beginning to eat into its lead, and new offerings—fueled by the rise of artificial intelligence and social video—threaten to reshape the landscape. TikTok, the wildly popular short-form video platform, has recently started allowing brands to target ads based on users’ search queries—a direct challenge to Google’s core business. Perplexity, an AI search startup backed by Jeff Bezos, plans to introduce ads later this month under its AI-generated answers. Until now, it has made revenue mostly from a $20-a-month subscription offering that grants access to more-powerful AI technology. The new initiatives add to the pressure on Google from the rise of Amazon.com , which has taken a chunk of search ad spending. Many consumers begin product searches on the e-commerce platform. Google’s share of the U.S. search ad market is expected to drop below 50% next year for the first time in over a decade, according to the research firm eMarketer. Amazon is expected to have 22.3% of the market this year, with 17.6% growth, compared with Google’s 50.5% share and its 7.6% growth. “For the first time in probably 15 years, we will have viable alternatives to Google,” said Nii Ahene, a veteran digital-advertising executive. (More in article: https://lnkd.in/gNkmh83H)

Shifts in the Search Advertising Landscape Google has been the undisputed champion of search advertising for years, but that might be changing. With new competitors like TikTok stepping in and AI reshaping the game, Google’s dominance is under pressure. TikTok is now letting brands target ads based on what users are searching for, making it a real contender. Plus, an AI startup called Perplexity is planning to roll out ads with its AI-generated answers, moving beyond just subscriptions. Research shows that Google’s share of the U.S. search ad market could drop below 50% for the first time in over a decade. Amazon is also grabbing a piece of the pie, as more shoppers start their searches there. This shift is exciting for advertisers who’ve been craving more options. Google is trying to keep up by introducing new ad formats, but the landscape is changing fast. What are your thoughts on these developments? Do you think Google can maintain its lead?

Advertising is coming to Perplexity 🚨 Perplexity, the AI search engine positioning itself as a potential competitor to Google, is starting to pilot ads in its results. It's a gamble that we'll be monitoring closely. If, like me, you have found yourself increasingly turning to Perplexity to answer the searches that Google just doesn’t seem to be able to handle, then this may concern you. But given the "answer" engine wants to compete with Google it also needs to stay competitive. Ads helped make Google what it is today, and Perplexity will be hoping for a similar impact. The platform has indicated that ads will appear "in the form of sponsored follow-up questions and paid media positioned next to an answer" (see page 21 onwards in their pitch deck attached 👇). The aim? To offer bespoke advertising content that precisely meets the requirements of both the user and the advertiser, thanks to an advanced language model and data analysis. These campaigns should adapt and evolve using machine learning to meet users' expectations in real-time 🚀. For brands, it's an opportunity to access a brand-new, ultra-targeted advertising space. This new feature is currently being tested in the United States, but it's safe to bet that it will soon be available in the UK and elsewhere. If you don't start preparing, your (future) campaigns risk leaving crucial reach on the table and not harvesting user intent. 👉 What do you think of Perplexity's announcement and the implications it has for users and advertisers?

𝟓 𝐭𝐲𝐩𝐞𝐬 𝐨𝐟 𝐆𝐨𝐨𝐠𝐥𝐞 𝐀𝐝𝐬: 𝟏. 𝐒𝐞𝐚𝐫𝐜𝐡 𝐚𝐝𝐬: 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧: Throughout Google Search results 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫: Promoting webpages related to targeted keywords 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐥𝐞𝐚𝐝: $ 𝐊𝐞𝐲 𝐟𝐞𝐚𝐭𝐮𝐫𝐞𝐬: - Cost-efficient - Text-based - Highly targeted using real-time search queries, which means people see your ads at the exact moment they're looking for that thing 𝟐. 𝐃𝐢𝐬𝐩𝐥𝐚𝐲 𝐚𝐝𝐬: 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧: On millions of webpages, apps, and Google properties in the Display network 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫: Building awareness to new markets across content formats 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐥𝐞𝐚𝐝: $ 𝐊𝐞𝐲 𝐟𝐞𝐚𝐭𝐮𝐫𝐞𝐬: Visually oriented Covers 35 million+ apps and websites plus Google properties Follows users across advertising surfaces based on behavior 𝟑.𝐒𝐡𝐨𝐩𝐩𝐢𝐧𝐠 𝐚𝐝𝐬: 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧: Throughout Google Shopping, SERP, Images, Maps, and search partner results 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫: Selling physical products included in Google Merchant Center 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐥𝐞𝐚𝐝: $ 𝐊𝐞𝐲 𝐟𝐞𝐚𝐭𝐮𝐫𝐞𝐬: Includes product images Auto-populates using Merchant Center data Appears across Google properties and search partner search results 𝟒.𝐕𝐢𝐝𝐞𝐨 𝐚𝐝𝐬: 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧: Before, during, and after videos on YouTube; in YouTube search feeds; on the YouTube home feed; and across the Google video partners network 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫: Promoting video content or reaching highly engaged users with dynamic video ads 𝐂𝐨𝐬𝐭 𝐩𝐞𝐫 𝐥𝐞𝐚𝐝: $ 𝐊𝐞𝐲 𝐟𝐞𝐚𝐭𝐮𝐫𝐞𝐬: It can be used to promote products via video or to promote existing videos Available in several formats that play before, during, and after YouTube videos It can also be displayed across third-party apps, games, and websites 𝟓.𝐀𝐩𝐩 𝐚𝐝𝐬: 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧: Play Store search results, Play Store suggestions, Google SERP, YouTube feeds, Google Discover, and across the Google search partner network 𝐁𝐞𝐬𝐭 𝐟𝐨𝐫: Promoting an existing app or a forthcoming app (Android only) Cost per lead: $ 𝐊𝐞𝐲 𝐟𝐞𝐚𝐭𝐮𝐫𝐞𝐬: Can be used to target new users and current users Displays across a wide range of advertising surfaces Campaigns target installs, engagement, or pre-registration (Android only) #PPC #googleads #digitalmarketing #keywords #socialmediamarketing

What changes in PPC strategies do you foresee with Google's new generative AI features? As the landscape of digital advertising continues to evolve, this month's updates bring significant shifts that marketers should review. Google now offers real-time shopping trends and AI-powered insights, empowering retailers to adapt quickly as consumer behavior changes. The potential for enhanced local inventory ads also means consumers can find what they need more efficiently. With TikTok's partnership with Amazon for seamless in-app shopping and Perplexity's plans for Q4 advertising, there's a lot to digest. Now more than ever, businesses must balance innovative advertising with ethical considerations, especially regarding younger audiences. What are your thoughts on these changes? Let's discuss! 🚀 #PPC #DigitalMarketing #GoogleAds #AdvertisingTrends #SocialMediaStrategy https://lnkd.in/gcsxqhRe

Google Ads Product Laison Ginny Marvin announced several revamps to query matching. I'm most excited about two updates around misspelled queries: -Negative keywords will now prevent all variations of misspellings! Negative keywords function differently than normal keywords, which have a broader means of targeting. You used to have to create a different negative keyword for every variation of a misspelled term, but you'll no longer have to do that. -Search term reports will now have aggregated reporting to combine misspelled queries with the actual correctly spelled query. No more hilarious misspellings of your brand name. If you're an old man like me, you probably remember having an ad group dedicated to misspelled keywords, or even multiple SKAGs of misspelled keywords. This is a welcome change to help consolidate managing misspelled queries. https://lnkd.in/gJgjCiQJ

If 9 out of 10 searches still happen on Google why is their share of the search ad market dipping below 50% for the first time ever? 🤔 This time last year (Q4 2023), search ad impressions in the U.S. decreased by roughly 15% year-over-year, and clicks were down 8%. The trend didn't get much better in 2024, with Q3 showing modest click growth of 3%, hinting that impressions were relatively flat year-over-year (exact figure not readily available). 👀 At the same time, U.S. Google search ad spend is set to grow 11% in 2024. So, what's forcing brands to pay more to get less?...The scariest competition Google has ever seen. 😱 And it’s not just ChatGPT, there's a lot more at play here. Let's break them down... 1️⃣ Amazon's Rise Amazon now quietly owns 22% of the search ad market. Their ad business is barely a decade old...Think about that for a second! 2️⃣ Social Search More consumers are using platforms like TikTok, Instagram, Facebook, and LinkedIn to search for information. In fact, 45% of Gen Z users now prefer using social media when searching for information vs traditional search engines. 3️⃣ Google's Own AI Google's AI search tools shows users results without them needing to click. While this function can help future-proof Google's search business, it may come at the cost of traditional ad revenue. Classic innovator's dilemma. 4️⃣ The “Authenticity” Factor Let’s face it—Google search is filled with more ad spam than ever. In a world craving authentic content, users are shifting to content that's EARNED its way up the ranks, thru ORGANIC value. 2025 could be the most important year for search advertising since it was invented. Get your popcorn and enjoy the show! 🍿 #marketing #advertising #digitalmarketing #google #socialmedia 📌 Sources linked in comments…