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Google will account for 52.2% of US search ad spend this year, according to our forecast. Next year, we project Google will fall below the 50% mark for search share. 鈥淲orking hardest in Google鈥檚 favor is that delicate balance of agreements that keeps Google as the default search engine on most browsers and mobile operating systems,鈥� said Mitchell.

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.

Almost all search ad spend growth is coming from retail media, per our forecast. 鈥淭raditional search is slowing to a crawl,鈥� said Mitchell-Wolf. Indeed, Amazon is the most popular platform for starting shopping online in the US, beating out traditional search engines, according to Jungle Scout data. Retailers see the revenue benefit search can offer.

US retail media search ad spend is on the rise, growing by double digits over the next four years to reach $76.83 billion, per our forecast. Non-retail media (traditional) search ad spend is on the decline, growing less than 1.0% in 2028, reaching $106.96 billion. The rise in retail media ad spend may be due to its ability to deliver on performance-related goals.

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.".

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 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.

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.

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.

US search ad spend will grow 11.1% this year, reaching $124.59 billion, according to our March 2024 forecast. Use this chart: Digital advertisers can use this chart to benchmark the performance of their search, social, and retail media ads, and align their ad spend based on their marketing goals. Related 蘑菇AV reports:. US Search Ad Spending Benchmarks: Q3 2024 (Subscription required).

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.

The billions of dollars this industry puts behind search ads make up a sizable portion of all US search ad spending. In 2021, healthcare and pharma accounted for 10.4% of all search spending, but its share will decrease to 9.4% in 2025 as other industries raise their search ad commitments. What do marketers need to know? Social media platforms are moving into social search.

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.

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.

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.

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.

Some of AI鈥檚 biggest players didn鈥檛 see meaningful bumps in search ad spend share (Google), product searches (Amazon), or ad spend (Microsoft), 鈥渂ut that might change in 2024.鈥�. AI will continue to influence conversational search, visual search, and voice search next year, changing ad delivery and performance.

While social search advertising dollars aren鈥檛 large, Williamson believes momentum will grow. 3. How should marketers approach social search? Marketers shouldn鈥檛 abandon Google or Amazon anytime soon.

Google still captures most US search advertising dollars, but its share has declined by 7 percentage points over the past four years to 53.9%, while Amazon has increased its share by nearly 10 percentage points to 22.5%. Walmart: No retailer comes close to challenging 础尘补锄辞苍鈥檚 retail media dominance, but Walmart is working its way up the ladder.

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.