Google is the most celebrated hunt engine successful the world, but its power complete hunt advertisement revenue—and Gen Z's vernacular—is losing steam.
According to a Wall Street Journal report, Google's stock of the $88.8 billion U.S. hunt advertizing marketplace is expected to autumn to the lowest constituent successful complete a decade arsenic a divers group of competitors for illustration Amazon, Perplexity AI, and TikTok present replacement hunt experiences.
Consumers are conducting merchandise searches done Amazon and societal media searches done TikTok, pinch targeted ads creating gross for each business on the way. Perplexity is expected to infuse its AI hunt results with ads later this month.
Those rival offerings will push Google's U.S. hunt advertisement marketplace stock beneath 50% adjacent twelvemonth and bring Amazon's stock up to astir 25%, per the WSJ.
Related: Google's AI Overview Has Changed Since Its Debut, and These Websites Have Benefitted the Most
Moreover, Bernstein Research shows that Gen Z is hardly utilizing the word Google arsenic a verb. Young users are "searching" done societal media, Amazon, and ChatGPT; they aren't "Googling," Bernstein expert Mark Shmulik wrote in a September note.
As of past week, Google's AI Overviews now show ads pinch applicable products nether a "sponsored" banner. According to a Google spokesperson, the ads will only look nether applicable searches.
Example of ads successful Google AI overviews. Credit: Google
Even pinch AI rivals for illustration ChatGPT, Google's numbers stay strong. Its share of the wide hunt market has remained astatine slightest 90% truthful far. Bing, Yahoo, and different hunt engines person little than 4% each of the market.
Google advertisement gross also increased from 2022 to 2023, rising from $224.47 cardinal to $237.86 billion.
Related: Google Co-Founder Sergey Brin Is Back astatine the Company 'Pretty Much Every Day.' Here's What He's Working On.