If you are waiting for ad spending on search advertising to slow down soon, you will have to wait for a long time. According to a new report, videos, linear TV, and CTV are the most vulnerable in terms of cutting ad budgets.
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Google is at the top when it comes to search ads in the United States, as it holds around 56.1% of the entire ad revenue that ad platforms such as Yelp, Microsoft, and Amazon share. Even though other platforms are gradually getting more prominent, Google is still at the top and will be there for a while, and then Microsoft sits comfortably at the number 2 position.
Moving beyond Google, even though Google is at the top, other platforms such as Amazon and Apple are moving up with speed. It is predicted that the 2022 revenue of Apple Search Ads will be a whopping $5 billion. New ad inventory is steadily giving room for more advertisers and developers to promote their businesses and apps in a relatively underused and less competitive space.
Anytime a consumer is nearing the purchasing stage, they go to Amazon a lot, and that seems to be why there’s a growth in its overall 2022 search ad spending. TikTok is even picking up momentum when it comes to search ads because reports say that in Q2, e-commerce brands spent around 60% more money on TikTok ads.
TikTok is likely on its way to becoming Google’s direct competitor as reports claim that 40% of people between the ages of 18 and 24 in the United States go to Instagram and TikTok over Google when they want to search for anything.
Managing Several Networks. For advertisers, managing several retail media platforms is an actual pain point. Because of this, analysts believe that this is what will likely be keeping most of them from gaining market share. According to the Independent Agency Crossmedia’s managing director of digital activation, Prerna Talreja, if each retail has its own platform, learning to optimize and use it would be a lot for advertisers, and that is where the consolidation of some big players would be an actual competitor to Google as opposed to fragmenting in the small areas.
Mobile vs Desktop Trends. About â…” of people are spending more on mobile search ads compared to desktop search ads. You also need to know that in 2016, over 50% of the United States population made use of a mobile device to search online. It’s been predicted that by 2023, the number will go up to as high as 70%. According to analysts, the gap will continue widening over the next couple of years.
Privacy-First. Platforms that are privacy-centric such as DuckDuckGo, advocate for giving customers the chance to control their information. Nevertheless, the search engine might be losing steam because a June report stated that the daily search on the platform had dropped very low to below 100 million.
Well, several smaller search networks, such as DuckDuckGo and Neeva, directly source their results from Microsoft.
There are a lot of things going on in the search ads world these days, so you need to always check out for updates on these things as they’ll have a significant effect on the marketing of your business or your clients.
Why Is It Important to Us?
Advertisers who work with search ads need to be aware of the trends in the industry, as we said earlier, which also include channel expansion and emerging platforms. In addition, being aware of where most of the ad spend is going can help you leverage your budget and plan for market volatility and changes.
