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Advertisers should be setting up campaigns for success with genAI search ads now, both on Microsoft鈥檚 ad platform and on other platforms that have genAI search ad formats, such as Google and Perplexity. GenAI search ads will enable brand advertising in a performance marketing context, Sainsbury-Carter said.

Target has taken buying search ads in-house. In March 2024, Target changed the way advertisers can buy search ads, bringing more advertisers into direct contact with Target鈥檚 ad sellers. Search ad sales had previously been handled by Criteo. 蘑菇AV research is based on the idea that multiple sources and a variety of perspectives lead to better analysis.

Google's search advertising empire continues to expand. Search remains the primary driver of Google's revenue growth, riding a 12% increase to $49.39 billion in Q3. We expect Google search revenues to grow 10.3% to $156.26 billion this year. Google's overall advertising revenues for the quarter reached $65.85 billion, up 10% YoY. But a shifting landscape may be on the horizon for search dominance.

Search advertising is key for two industries, while the rest prefer display. US digital advertising is display-centric overall, and most industries mimic that trend. In 2024, 56.8% of all digital ad spending will go to display, with 41.2% going to search and the remaining sliver to lead generation, email marketing, classifieds, and mobile messaging.

This year, Google鈥檚 search ad revenues will reach $62.87 billion, per our forecast. By 2026, its search ad business will be more than 10 times the size of Microsoft鈥檚. Some 71% of adults worldwide think generative AI will have a very or somewhat large impact on search engine companies, per data from YouGov and Reuters Institute for the Study of Journalism at the University of Oxford.

罢颈办罢辞办鈥檚 Search Ads Toggle and campaigns using manual placements on Meta platforms give advertisers the choice to include search ads alongside other social formats. However, if an advertiser uses Advantage+, there is no option to go without search ads. There鈥檚 no special creative for social search.

Integrating real-time search could double or triple its usage, unlocking opportunities for future search advertising expansion. Expect other genAI startups to rush to productize search either through content partnerships or by launching standalone apps.

Marcus Johnson (13:27):. ... because Google's share of the search ad revenue pie has been heading in the wrong direction for a while, way before the announcement of SearchGPT, dipping below 50% for the first time this year, according to our estimates. So, from 2022 to 2026, we expect Google's share to fall eight points, from 55% to 47%, that's of the search ad revenue pie in the US, by 2026.

Social search ads and genAI players like ChatGPT and Perplexity also pose a threat to traditional search ad revenues. But Google isn鈥檛 going away. 鈥淕oogle鈥檚 status as the default search engine across most major browsers and devices will help protect its dominance,鈥� Mitchell-Wolf said. 3. Retail media will face growing pains.

GenAI search: Ad-supported genAI search models enable mass adoption and are already driving higher engagement and revenue for Google. AI search isn鈥檛 a cheap offering鈥擥oogle disclosed that its operations cost 10 times more than traditional search鈥攎eaning that larger players with infrastructure and alternative revenue streams are favored to succeed in that market. 5.

Generative AI search engine Perplexity will launch ads in the next few quarters. But while advertisers probably don鈥檛 need to form Perplexity ad strategies just yet, they should keep an eye on how the search engine is approaching monetization for clues into what Google (and other emerging search competitors) could do in the future.

Brands are targeting shoppers with search ads on social. TikTok launched Search Ads Toggle in October 2023, enabling brands to serve ads alongside organic search results from relevant user queries. Instagram is also testing search ads in the US and is planning a global rollout. Entertaining content is more important than influencer endorsements. Social commerce is a form of 鈥渟hoppertainment.鈥�

鈥淎I tools changing consumers鈥� search behavior will have a massive impact on use of Google Search, which in turn will drive a large shift in ad budgets that currently spend heavily on 础诲飞辞谤诲蝉,鈥� said Leslie Lee, senior vice president of marketing at Vistar Media.

All that said, even if OpenAI and Perplexity were to develop novel search ads, we expect Google to be the dominant player in that category for some time to come. Keep reading: Check out our Tech Briefing鈥檚 coverage of this development.

But as the social platforms iterate on their search ad formats next year, Google and other traditional search platforms will get squeezed. Predictions. Meta will launch AI search ads. The battle for dominance in AI search will largely be determined by who can monetize most effectively. Reddit will lean into recommendations.

Professional fields like finance and legal research will sustain subscription models, while general search consolidates around ad-supported platforms鈥攅xpanding the overall search advertising market through increased user engagement. A two-tiered landscape will emerge in retail search.

Note: 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

TikTok introduces Search Ads Toggle, allowing advertisers to reach high-intent users and improve RoAS: Clinique and DIBS Beauty report increased conversion rates and decreased CPA.

While other publishers have struggled in the wake of Apple鈥檚 AppTrackingTransparency (ATT), Apple Search Ads has tripled its market share of mobile advertising since the first half of 2020, according to AppsFlyer鈥檚 latest 鈥淧erformance Index.鈥�

Search advertising industry could be monetizing AI chats too soon: Much rides on Bing Chat ads鈥攁nd how it impacts user experience.

Search ads command the largest share of digital ad spending in Spain, accounting for 32.5%, or 鈧�1.6 million ($1.7 million), according to IAB Spain. Social networks are also a primary focus, at 28.3%, demonstrating the value social media platforms maintain for advertisers. And not far behind, display advertising secures 22.5% of the budget.

The US financial services industry will spend $15.91 billion on search ads in 2024. That鈥檚 a 16.8% increase YoY, per our forecast. Financial services firms will also allocate a slightly above-average share of their total digital ad spend (43.9%) to search versus industries overall (41.2%). Click here to view our full forecast for US financial services industry search ad spending.

Much of RMNs鈥� early success came from advertisers鈥� interest in buying search ads close to the point of purchase on retailer websites. But FMNs don鈥檛 have owned channels where users spend a lot of time shopping. And the apps and websites financial institutions have are ones consumers tend to navigate with the mindset of managing and saving money, rather than spending.

Other ad channels like search are capitalizing on shoppability: Google recently began testing an AI-powered search ad format that targets low-traffic queries that are likely to drive purchases.