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Key stat: US Google Search ad revenues will hit $57.49 billion in 2023, accounting for 52.2% of total search ad spending in the US, according to our forecast. There aren鈥檛 a lot of search sellers to begin with, while the buy side is crowded. Amazon will have 21.7% share in 2023, followed by Microsoft at 5.3% and Apple at 4.7%, per our forecast.

While Gemini and cloud services drive record revenues, competition and global regulatory actions threaten its monopoly, particularly in search and advertising ecosystems

A big Google decision is coming in 2025: A judge will rule in April on several DOJ proposals that Google sell Chrome and syndicate its data.

For context, search ad spend will make up 41.7% of US digital ad spend in 2024. All this begs the question posed by Pranav Dixit, 鈥淲ho makes money when AI reads the internet for us?鈥� It鈥檚 not publishers, programmatic advertisers, or users. It鈥檚 the search engines that scrape the internet.

The sector will post a compound annual growth rate (CAGR) of 11.2% through 2027, comparable to the 11.5% CAGR that the US search ad spending market will post over the same period. Social won鈥檛 get overtaken by retail media 鈥� yet. Social鈥檚 share of total media ad spending will grow much more slowly.

OpenAI rolls out free search to capture shoppers during a peak ecommerce season, offering price comparisons and product links just when consumers need them most

Digital ad spend tops $300 billion in 2024: Video dominates growth, driving display advertising's share and reshaping ad strategies through social and OTT.

Amazon鈥檚 ad launch will define streaming for years to come: In less than a year, Prime Video became a top dog in streaming advertising.

Capturing 88% of search traffic and 65.8% of browser use, Google shapes digital activity, though rising AI competitors and regulatory risks may challenge its supremacy.

Economic uncertainty will drive search ad spending. Amid a more challenging macroeconomic environment, advertisers in Latin America will lean more into lower funnel tactics, like search. The region鈥檚 retail ecommerce and retail media booms will also help fuel search鈥檚 double-digit gains of 11.8% in ad spending this year.

However, ecommerce platforms like Amazon Business are drawing in search ad dollars, while social platforms like Instagram are leaning into search too. Google's share of the B2B search ad market will decline to 72.9% in 2023, from 80.5% in 2019. B2B mobile ad spend steadily gains a bigger share. B2B mobile ad spending will grow 12.2% YoY in 2023, a slowdown from 2022鈥檚 figure (18.1%).

OpenAI considers its approach to ads: The $157 billion company explores monetization strategies to diversify revenue streams.

Global ad revenues surpass $1 trillion in 2024, says GroupM: Retail media and digital platforms drive rapid growth amid linear TV decline.

Because today, as I said, Google has 50% search, sorry, share of search ad dollars to Amazon's second place, 22%. So 50 to 22. By 2026, the shares will be 47 to 27. So it's going from a 30-point gap between Google and Amazon to a 20-point gap. The problem here is that no other company is racing to challenge these two at all, so it's going from a monopoly in search ad dollars to a duopoly.

These behavior shifts have put traditional search ad budgets in a precarious state. And more marketers are turning to retail media as a key touchpoint to reach consumers closer to the point of sale. Traditional search engines are struggling to maintain relevance in product research. Retailers鈥� digital properties were the channel of choice.

Amazon plots an upgrade to its search capabilities, with help from generative AI: The retailer is planning to incorporate an AI chatbot to help shoppers with queries, recommendations, and product comparisons.

As 2023 comes to an end, this is the data you need to kick-start 2024.