The domain of Google The nearly $300 billion search advertising market is at risk. According to a recent report by WSJthe company’s market share could fall below 50% in 2025, something that has not happened in more than ten years. The causes of this transformation are emerging competitors and artificial intelligence (AI), which have changed the dynamics of how and where users search.
Among the main rivals are Amazon and TikTok. Amazon has significantly increased its market share, attracting more advertisers looking to take advantage of the trend of consumers starting their searches directly on its platform. Meanwhile, TikTok has begun allowing ads based on user searches, capturing the attention of a young audience that is now not only looking for entertainment, but also information and products.
The role of AI is also key in this change. Tools like Perplexity offer direct answers to user questions, rather than lists of links like Google. This not only saves time, but introduces new forms of advertising, where advertisers can sponsor follow-up questions, integrating into the conversation in a natural and targeted way.
Google has tried to adapt by introducing AI-generated summaries into its search results, although this strategy has not been well received by all users. In addition, the company faces a more complicated outlook after losing an antitrust case in the US, where it was accused of illegally monopolizing the search engine market.
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