蘑菇AV

Microsoft bets big on AI and cloud, but TikTok acquisition could reshape its ad strategy: Investors weigh future growth against spending risks and competition.

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.

鈥淲e鈥檙e not going to tap or unlock search dollars. It鈥檚 more like reimagining how we鈥檇 position a social play.鈥�. Platform snapshot: Meta. After going into 2023 looking reactive and out of ideas, Meta is now firmly back in the driver鈥檚 seat. It鈥檚 leading social鈥檚 charge into generative AI and continuing to make itself indispensable to advertisers.

So if we look at retail media for example, we already specifically track retail media search ad spending is a separate line item in our digital ad spending forecast in the US only at the moment. And what we see there that over the next several years is that retail search spend will grow at around about twice the rate of "traditional search.".

US search ad spending will amount to $147.4 billion this year, per our forecast. While any budgets spent on this offering would fall under our social network ad spending forecast, the fact remains that TikTok can now be a viable place for search marketers to consider placing some of their budgets.

Perplexity has firm plans to include ads on its platform in Q4, potentially capturing a slice of search ad spending, which we forecast to grow by almost $60 billion between 2024 and 2028. Perplexity in pole position: As the most notable pure-play AI search player, Perplexity has stoked investor confidence with its revenue-sharing program for participating publishers.

Evelyn Mitchell-Wolf (14:05):. .... losing share, but the pie is growing, and it's mostly that most new search ad dollars are going to Amazon, where ... Not most new search ad dollars, just more new search ad dollars are going-. Marcus Johnson (14:05):. Right.

Amazon will account for nearly all of the $29.69 billion US retail media search ad spend this year, though Walmart and Instacart are also contributing to retail media鈥檚 share of search ad spend, per our forecast. 3. In-store retail media presents a giant opportunity.

Google currently holds 26.7% of US digital ad spend share and 52.4% of US search spend share, per our November 2024 forecast. The company has faced some competition due to cookie loss, the rise of retail media search advertising, and generative AI search disruption.

Amazon鈥檚 share of total US search ad spend will increase to 22.3% this year while Google鈥檚 declines to 50.5%. This was originally featured in the 蘑菇AV Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

In 2024, Google鈥檚 share of search ad spending is set to drop below 50% for the first time. Retail media鈥檚 growth will defy the overall market slump. Retail media is the only major category of ad spending we track that is set for multiple years of accelerating growth.

But they鈥檝e pulled from their 鈥渙ther鈥� budgets to maintain search spending on emerging platforms like retail media networks. US retail media search ad revenues will grow nearly four times faster than nonretail media search advertising, according to our forecast. And Amazon, which will get 80.7% of US retail media search dollars this year, will reap the lion鈥檚 share of these gains.

Search and advertising come under fire as the CMA takes a proactive approach to regulation while the US DOJ focuses on punitive remedies.

Search spend is moving to retail media. An increasing portion of paid search spend is going to retail media. Six in 10 (59.3%) marketers worldwide plan to increase retail media search ad spend this year, according to an 蘑菇AV and TripleLift survey. Retail media will account for 27.2% of US search ad spend this year, and that share will grow every year through the end of our forecast in 2028.

For instance, in China, ecommerce search ad spending will represent 64.0% of total search spending this year, largely because Baidu remains unattractive to many marketers. But in the US, where Google is preeminent, ecommerce search will only attract around 27% of search dollars. The field remains crowded.

Some 97% of marketers will either increase (51%) or keep (46%) their search ad spending. Our take: Consumers use search engines more than any other online channel for medical research, per our December 2023 Digital Health Survey. Their health-related queries present a prime opportunity for advertisers to attract patients and customers.

Beyond the chart: Paid search remains a valuable strategy for marketers amid economic uncertainty due to its lower-funnel, high-ROI status, according to our 鈥淯S Search Ad Spending 2022鈥� report. Marketers are investing more in retail media specifically, for its proximity to the point of purchase and ability to provide closed-loop attribution, per our 鈥淩etail Media Explainer.鈥�.

Should Bing offer a better user experience than Bard, many of those search advertising dollars could be in play.

Google is losing share of total US search ad spend, which will fall below 50% next year, per our March 2024 forecast. Google鈥檚 diminishing share isn鈥檛 happening due to generative AI but from retail media, which will account for 27.2% of total US search ad spend this year.

Next year, US search ad spend will reach $127.84 billion, growing 12.4% YoY, per our forecast. Search will account for 41.6% of overall US digital ad spending in 2024. The cost of getting retail media search right: The increase of retail media ad inventory shouldn鈥檛 clutter or detract from the shopping experience.

鈥淩etail media search has gone from a sort of interesting subplot within the context of search ad spending into one of its main stories,鈥� Willens said.

In 2024, a perfect storm of technology, business, and consumer behavior trends will conspire to intensify the challenges of protecting brands on digital media.