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Search ads on Apple鈥檚 App Store have rapidly increased in importance. Apple鈥檚 introduction of ATT in 2021 has contributed to the growth of its search ad revenues. YoY growth in Apple install ad spending slowed to 18.3% in 2023. But that figure was still well above the mean and helped Apple鈥檚 share of the app install market increase to 23.2% last year.

While Google faces mounting pressure from Bing鈥檚 ChatGPT integration and other generative AI (genAI) search platforms, degradation of its own search results, including those shown in its AI Overviews, could be exacerbating migration away from Google.

Mexico is Latin America's second-largest ad market by total spending but has the highest digital ad penetration in the region. Here, we explore the country's consumer behaviors and opportunities for advertisers.鈥�

Amazon will begin selling its ad tech to third-party retailers: The new Amazon Retail Ad Service will give companies access to the retailer鈥檚 advanced targeting and sizable advertiser network.

Other ad channels like search are capitalizing on shoppability: Google recently began testing an AI-powered search ad format that targets low-traffic queries that are likely to drive purchases.

Google's Search ad revenues are healthy, we just discussed that. They grew 13.2% year over year in 2024, compared to 7.7% in 2023. So that's positive momentum. Google traffic volume still dwarfs that of its Gen AI first competitors. Similar web data from December shows Google saw 31.8 times more web visits than ChatGPT, which was the next biggest Gen AI search destination.

I'd say brands want more creative ways to spend their retail dollars than just product search ads. So I like to think of it as kind of a glow up for retail media and then marketers on the influencer side just get more accountability for their dollars and a chance to scale their influencer programs. Sarah Marzano (13:52):.

蘑菇AV analysts highlight four trends that will affect digital advertising in 2025.

At $22.25 billion, digital advertising is advancing unabated in Latin America this year. Double-digit gains in video and retail media ad spending, as well as improving economic conditions in Brazil and Mexico, will help take the regional market to new heights. Here are the latest trends you need to know.

In addition, concerns about generative AI鈥檚 impact on search advertising are having a dampening effect. Amazon has entered the mix and is steadily growing share. The boom in retail media spending has boosted Amazon鈥檚 ad revenues. As such, the duopoly has become a triopoly, and Amazon鈥檚 strong ad business will keep the triopoly鈥檚 share at around 66% throughout the forecast.

鈥淕oogle will account for over half of search ad spending this year, but Google's not the perfect fit for every query that every person could ever ask,鈥� our analyst Evelyn Mitchell-Wolf said on a recent 蘑菇AV webinar. 鈥淚t never has been, and now consumers are also going elsewhere to satisfy their search needs.鈥�

Search advertising was never as attractive in China as it was in the US, thanks to the relative weakness of industry leader Baidu. Strict government regulation and relatively poorer search functionality have limited Baidu鈥檚 ceiling as an ad publisher. Social media was always constrained.

From a budget perspective, social search advertising is still nascent. While social search ad formats are growing, they鈥檙e not eating away at traditional search budgets quite yet, according to interviews we conducted with industry experts. Across top platforms, search advertising is limited without functions like keyword targeting and the ability to buy these ads on their own.

This year, Google鈥檚 search ad revenues will reach $62.87 billion, per our forecast. By 2026, its search ad business will be more than 10 times the size of Microsoft鈥檚. Some 71% of adults worldwide think generative AI will have a very or somewhat large impact on search engine companies, per data from YouGov and Reuters Institute for the Study of Journalism at the University of Oxford.

Retail media ad spending will be increasingly responsible for digital advertising鈥檚 double-digit growth. By 2028, the powerhouse channel will grow to represent nearly 1 in every 3 ad dollars spent.