Google is in a predicament because of the rise of TikTok and artificial intelligence. For years, Google has had a strong grip on the advertising business but now it seems like other platforms are going to challenge Google. TikTok has started allowing advertisers to target search specific ads. Similarly, an AI startup by Jeff Bezos, Perplexity, is also going to introduce ads under its AI generated answers. Many users are also doing product searches on Amazon. According to eMarketer, Google’s market shares are expected to drop below 50% in the next year.
According to the estimate, Amazon will have 22.3% market share this year, and will have 17.6% growth. On the other hand, with a market share of 50.5%, Google’s growth will be 7.6% this year. Even though Google is far ahead than all of its competitors, others are catching up soon and for the first time in 15 years we are seeing some great alternatives to Google.
Most users are using AI for answers and Google has also started AI generated summaries with ads on its search results. At first, ads along with AI generated answers will be present on mobile searches in the USA. The ad will appear at the top of search results and it will be a great way to monetize AI powered experience.
Perplexity is also preparing to give users the experience of ads with AI generated answers. The platform will also allow brands to sponsor follow-up questions that will be approved beforehand and can be locked too. Perplexity’s chief business officer also said that 46% of the users in the US ask follow up questions and the company has processed 340 million queries in September 2024. Other search engines like Microsoft are also trying out ads in AI generated answers.
TikTok is also allowing brands to display ads near search results based on keywords in user searches. Advertisers are drawn to TikTok because it is the favorite platform of many young people. According to eMarketer, TikTok’s revenue is expected to jump 38.1% this year despite the US government's efforts to ban it. There is a search volume of over 3 billion on TikTok everyday. Many advertisers have tested TikTok’s new ad product this year with most of the clients in the beauty, apparel and consumer electronics category. Some advertisers are quite hesitant to shift their dollars to TikTok from Google because search volume on TikTok is still low. But Google is also not in a very good position. So we will have to see what the next year will bring.
Image: DIW-Aigen
Read next: ChatGPT Earns $37M in September, Surpasses $300M in Total Revenue
According to the estimate, Amazon will have 22.3% market share this year, and will have 17.6% growth. On the other hand, with a market share of 50.5%, Google’s growth will be 7.6% this year. Even though Google is far ahead than all of its competitors, others are catching up soon and for the first time in 15 years we are seeing some great alternatives to Google.
Most users are using AI for answers and Google has also started AI generated summaries with ads on its search results. At first, ads along with AI generated answers will be present on mobile searches in the USA. The ad will appear at the top of search results and it will be a great way to monetize AI powered experience.
Perplexity is also preparing to give users the experience of ads with AI generated answers. The platform will also allow brands to sponsor follow-up questions that will be approved beforehand and can be locked too. Perplexity’s chief business officer also said that 46% of the users in the US ask follow up questions and the company has processed 340 million queries in September 2024. Other search engines like Microsoft are also trying out ads in AI generated answers.
TikTok is also allowing brands to display ads near search results based on keywords in user searches. Advertisers are drawn to TikTok because it is the favorite platform of many young people. According to eMarketer, TikTok’s revenue is expected to jump 38.1% this year despite the US government's efforts to ban it. There is a search volume of over 3 billion on TikTok everyday. Many advertisers have tested TikTok’s new ad product this year with most of the clients in the beauty, apparel and consumer electronics category. Some advertisers are quite hesitant to shift their dollars to TikTok from Google because search volume on TikTok is still low. But Google is also not in a very good position. So we will have to see what the next year will bring.
Read next: ChatGPT Earns $37M in September, Surpasses $300M in Total Revenue
