Google Search Market Share Declining Due to AI and TikTok Challenges – WSJ

Investing.com reports that Google’s dominance in the $300 billion search advertising market is facing new challenges as competition from platforms like TikTok and emerging AI startups increases, according to a recent Wall Street Journal article.

Historically, Google has been the undisputed leader in this space, but advancements in artificial intelligence and social media search functions are starting to diminish its authority. TikTok, the rapidly growing short-form video platform, has launched a new feature that enables brands to target ads based on user search queries, effectively competing with Google’s primary search business.

Additionally, Perplexity, an AI-driven search startup supported by Jeff Bezos, plans to introduce advertisements alongside its AI-generated responses. This company, which also generates revenue from a subscription model, could further disrupt the search advertising market, as highlighted by the Journal.

Citing research from eMarketer, the article indicates that Google’s share of the U.S. search ad market is projected to drop below 50% for the first time in over a decade by 2024. Competitors like Amazon are also gradually increasing their market share; Amazon is expected to hold 22.3% of the market this year, a rise from 17.6% in 2022.

In response to these challenges, Google is continuously adapting its search platform by integrating AI-generated summaries and advertisements into mobile searches. Brendon Kraham, Google’s vice president for search ads, expressed confidence in this strategy to monetize their AI initiatives.

Despite Google’s efforts, advertisers are increasingly exploring alternatives. Digital advertising expert Nii Ahene noted that “for the first time in probably 15 years, we will have viable alternatives to Google.”

The growing competition, along with Google’s ongoing legal issues, creates a complicated future for the tech giant’s dominance in the market.