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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.

New search ads drive growth. Google鈥檚 growth is below average, but Apple and Amazon will grow quickly as they have an inside track for app and product search, respectively. Mobile games remain underutilized. Mobile game advertising will account for only 3.9% of mobile ad spending in 2024, far less than the 10.9% of mobile time spent on gaming.

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. What does it mean for marketers?

And that list doesn鈥檛 even extend to Google-branded products like Gmail, Chrome, Search, Ads, Google Play, and Maps. Google Search and Ad products are so intertwined that it would be next to impossible to separate the two. The DOJ is reportedly considering divestment of other Google products, like Android or Chrome.

Amazon will account for 21.6% of search revenues this year thanks to its dominant position in product search. But TikTok, Snapchat, and Meta all have chatbot-powered search features, and OpenAI continues to refine ChatGPT with new features. Fragmentation will lead to a wider search ad net. Fewer list-based answers will trigger new search formats.

Digital ad spending includes banner ads and other (static display ads such as Facebook's News Feed Ads and X's Promoted Posts), classified ads, email (embedded ads only), mobile messaging (SMS, MMS, and P2P messaging), rich media (including in-stream and outstream video ads), search ads (including contextual text links, paid inclusion, paid listings, and SEO), sponsorships, lead generation (referrals);

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. Video advertising is now the preferred form of display advertising for every industry.

Google, already defending its share of the search advertising market against Amazon and TikTok, rushed to compete. Microsoft鈥檚 US search ad revenue growth will outpace Google鈥檚. Its 9.0% growth rate is more than three times what Google will achieve this year, and that margin will widen over the next few years, according to our forecast.

We forecast Google will garner $62.87 billion in 2024 search ad revenues in the US alone. "This is momentous purely from the standpoint of this is something that has been close to a decade in the making," our analyst Max Willens said on a recent episode of the "Behind the Numbers" podcast.

Google search revenues: $48.5 billion (13.8% YoY increase). YouTube ad revenues: $8.7 billion (13% YoY increase). Net income: $23.6 billion (28.3% YoY increase). Operating income: $27.4 billion (25.7% YoY increase). Diluted EPS: $1.89 (31.3% YoY increase). Why it matters: Google is No. 1 in its market, and it shows no signs of slowing down.

Spending has shifted due to the popularity of social media, the changing B2B search ad landscape, and the importance of mobile. Key Question: What factors are affecting growth trends in US B2B digital advertising in 2023? KEY STAT: After a period of rapid growth during the pandemic, B2B digital ad spending growth will slow considerably to just 8.1% YoY in 2023. Executive Summary.

The company also forged connections with brands at Cannes, where it touted its search advertising and product discovery potential. In context: Despite beating expectations, Reddit stock fell more than 4% in after-hours trading. Low ARPU growth could be a thorn in the company鈥檚 side, raising concerns about its ability to bridge the enormous revenue gap with other social platforms.

A successful SearchGPT could cut into Google鈥檚 search advertising revenue and alter existing ad cost structures. Google might need to reconsider its relationships with publishers and content creators as AI alters web traffic patterns. Our take: Google Search owns 91% of the search market. It reported $175 billion in revenues from Search and attached ad sales in 2023.

Experiment with search ads on social media. Testing regular search ads on any of the social platforms that offer them can provide insights into what may work鈥攁nd what may not鈥攊f and when ads become more widespread on social media genAI chatbots. Sources. Bloomberg Intelligence. Big Village. Deloitte. Morning Consult. TD Cowen. YouGov.

It's still early days for search ads in AI Overviews. Ads are already being served in AI Overviews. At its Marketing Live event on May 21, 2024, Google announced that it will start testing search and shopping ads in AI Overviews when the ad is relevant to the query and the content in the Overview.