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Global search advertising spending will total $282.36 billion in 2024, per our forecast, so it鈥檚 likely that OpenAI will monetize with ads, but it鈥檚 unclear if the market will support the somewhat untested format.

In 2024, Google鈥檚share of search ad spending is set to drop below 50% for the first time.

More than half (50.5%) of all search ad spending will go to Google this year, per our March 2024 forecast. Use this chart:. Underscore the value of a media approach that leverages both digital and linear channels. Identify underutilized channels that may have less competition. More like this:. Social search is strongest when marketers amplify organic efforts. AI is transforming organic search.

Retail media will be the source of most search ad spending growth in the coming years. 5 charts on the current and future state of retail media. Why retail media is the future of TV advertising. Note: Respondents were asked, "On which of the following websites would you be most receptive to advertising? Select up to three.".

Microsoft is far behind, capturing 5.2% of US search ad spending this year, a share that is also decreasing, per our estimates. It鈥檚 difficult to see Microsoft鈥檚 path to search ad dominance, but with generative AI set to transform the way people search, it鈥檚 not impossible. More like this:. Microsoft鈥檚 new ChatGPT AI starts sending 鈥榰nhinged鈥� messages to people.

We expect US onsite search ad spend to reach nearly $30 billion this year, accounting for over 27% of total search ad spending. But there鈥檚 plenty of room for retail media networks to grow their search business, especially if they make improvements to their search capabilities.

Growth in retail media search ad spend will outpace its traditional counterpart. The 7 biggest retail media moves from the first half of 2024. 4 (more) retail media networks worth watching. Methodology: Data is from the October 2023 Merkle report titled "Retail Media Research Report." 100 US retailers and brands were surveyed during July-August 2023.

Retail media accounts for a growing portion of US search ad spend, reaching 28.8% this year, per our October 2023 forecast. Marketplaces have seen a drop of over 10 percentage points, which could be attributed to the nature of self-reported data or search ads clogging results and damaging customer experience.

AI and ad revenues lift Microsoft鈥檚 fiscal Q1: Company鈥檚 AI-powered ad platforms draw advertisers amid enterprise cloud gains.

OpenAI launches real-time ChatGPT search: Users access live info with conversational ease in an attempt to take market share from Google.

Search ad spending for the CPG industry is slated at $19.53 billion, compared with $39.85 billion for retail. How social fits in: CPG social network ad spending (the first time we have broken this out as part of our forecast) is experiencing 15.1% year-over-year growth. Total social ad spending for CPG will hit $13.2 billion, ranking it second after retail.

Search spending will rise faster than total digital ad spending. In Western Europe, digital ad spending will increase 8.9% in 2023, per our forecast. Search spending will outpace that at 9.2%. Across Europe search will claim a higher share of digital ad spending in 2023 than in other regions. Meanwhile, spending on retail media networks is surging.

Alphabet鈥檚 Q3 beats expectations: Google鈥檚 ad dominance holds as it navigates regulatory and competitive challenges in the digital ad market.

础尘补锄辞苍鈥檚 search ad spending is still growing because its product search results are ahead of the field, according to Lipsman. Nearly half (49%) of US adults start their product searches on Amazon, more than Google (34%), TikTok (3%), or Instagram (2%), according to CivicScience. Still, Amazon advertisers are looking beyond search.

US search ad spend will rise 12.4% to $127.84 billion this year, per our October 2023 forecast. With Google losing share as more search spend comes from retail media, the company needs to retain as much search ad spend as possible. That starts with healthy search results. 鈥淭hat鈥檚 how they make their money,鈥� said Ray.

Google鈥檚 app store will claim most of the search spending that Apple doesn鈥檛 absorb, while Meta鈥檚 platforms will remain the most common destinations for display ads from mobile app marketers. Prediction. Apple will secure the largest share of new spending in this category for years to come鈥攂ut it won鈥檛 stop there.

Microsoft makes up just 5.3% of total US search ad spend, according to our forecast, but that鈥檚 still a $5.84 billion business. To avoid stepping on its own toes, Microsoft will have to tread lightly with AI search ads. Which businesses will AI search disrupt first? Outside of Big Tech, publishers and agencies working with smaller brands will notice the toll of AI first.

Google鈥檚 accelerated AI investments keep it ahead in tech, even as rivals and regulators close in.

Search spending will remain strong in France and Germany, but the duopoly鈥檚 dominance is being tested. Key Question: How important will digital become to advertisers in Western Europe through 2027? KEY STAT: Despite a slight slowdown in digital ad spending growth this year, it will pull clear away from traditional spending.

Well, really quickly, I mean you mentioned that they are the biggest company in terms of search-ad dollars. They are, but next year we estimate that Google Search and revenue is going to fall below 50% for the first time since the beginning of time. (15:44):. Second place Amazon, and third place Apple were each going to grow at 22 and 16% respectively. That's triple and double Google's growth.

The tool could shift users away from Google and Bing, embedding AI search across Meta鈥檚 ecosystem and unlocking fresh ad revenue streams.

Google revenues will make up 55.6% of worldwide search ad spending in 2024 and 27.4% of overall digital advertising spending, per our forecasts. Its share of both markets has declined slightly over recent years, but without antitrust action, it鈥檚 proven difficult for even the largest of its competitors to capitalize on Google鈥檚 weakened position with regulators.

But search ad spending perennially maintains its overall share because two of the largest verticals鈥攔etail and finserv鈥攕plit their budgets relatively equally between formats. Retail will only use 52.7% of its dollars on display, leaving $33.09 billion for search ads. Finserv will only spend 53.7% on display, leaving $13.14 billion for search.

On Amazon, search spend is growing faster than display, but the two formats are growing at a more even clip on other platforms. Who else matters? 鈥淲almart, to my mind, has been one of the most under-discussed media success stories of the last several years,鈥� Willens said. Between this year and 2025, Walmart will double its ad business from $3.19 billion to $6.18 billion, according to our forecast.

Google is slowly losing share of search ad spend worldwide. While that may sound like good news for Apple, the challenges Google is facing in search would likely also impact Apple. (We don鈥檛 break out Apple鈥檚 search revenues in our forecast.). Retail media accounts for an increasing share of search ad spend in the US. That said, Google just announced it鈥檚 getting into retail media.