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The news: Amazon has quietly begun to weave sponsored ads鈥攊ts core search ad format鈥攊nto Rufus, the generative AI-powered chatbot it launched earlier this year, per an Adweek report based on Amazon Ads鈥� September product releases.

Digital ad spending will continue to accelerate in 2024. Retail will be a main driver due to its large ad outlays and growing contribution on the supply side.

The feature, which populates answers to searches directly on the results page, makes it more difficult to measure search ad impressions or return on ad spend. US search ad spend will grow 11.1% this year, reaching $124.59 billion, according to our March 2024 forecast.

Use this chart: Marketers can use this chart to align their investments with companies that hold positive consumer sentiment, whether it鈥檚 through retail media ads on Amazon, search ads on Google, or connected TV (CTV) ads on Netflix. Related 蘑菇AV reports:. US Amazon Ecommerce Forecast 2024 (Subscription required). Gen Z Technology and Media Preferences 2024 (Subscription required).

Meanwhile, Faire, an online wholesale marketplace, introduced its first ad solution, sponsored search ads. These 鈥淧romoted Listings鈥� help smaller brands without resources to spend much on on product promotion. 鈥淭he reason we鈥檙e going this path into advertising is to help our brands grow,鈥� Faire鈥檚 chief product officer Ami Vora told Retail Brew. 鈥淲e know that鈥檚 hard when you鈥檙e a small business.鈥�.

The experiment gauges users鈥� interest in seeing news content in search results and could push publishers to evaluate their reliance on traffic and ad revenue from Google Search

Google currently controls 50% of the US search ad market, and its share will fall below 50% for first time next year according to our forecasts. He says that a forced breakup could accelerate that, but that share is already going down. It's already going in the wrong direction, and we already are looking at a different search ad revenue universe in two years time even without the Google breakup.

Google defends against DOJ claims of ad monopoly: The giant emphasizes publisher choice and competitive ad exchanges amid trial scrutiny.

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

The creator economy, plus CTV and commerce media more recently, have made affiliate marketing more visible among marketers.

But nearly every platform also ventured into search ads to capitalize on growing social product search behaviors, making it fertile ground for competition in 2024. Social commerce is still a highly fragmented space. No social app has conquered commerce, and current approaches diverge significantly. TikTok is the app to beat.

Amazon now accounts for 21.6% of search revenues due to its dominant position in product search, according to our forecast, but Walmart, TikTok, Snapchat, and Meta, among others, are all exploring chatbot-powered search. Chatbot platforms such as OpenAI and Anthropic could also add advertising in the future. New formats will shake up search advertising.

But thanks to the launch of some new ad formats, as well as more and more ads inside Reels, Other ads will begin to grow quickly: Other ads鈥攚hich includes Reels, ads inside the Explore tab, and search ads鈥攚ill represent 15.0% of Instagram鈥檚 revenues in 2023 and 25.5% in 2025. Instagram is becoming a more complicated ecosystem.

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

Apple鈥檚 services include music-, game-, and video-streaming plans; search revenue from Google; and product warranties that together accounted for $24.21 billion in revenue in its fiscal Q3, a 14.1% increase YoY. Apple Intelligence will come standard on iPhone 16 models, but we expect wider subscription options as these features are refined over the next two years.