Google sees search ad market dominance threatened by TikTok and AI

Google’s seemingly untouchable dominance of the search advertising business is beginning to be threatened by the advancement of new technologies. As stated by Wall StreetJournal Monday (7), Both TikTok and artificial intelligence companies may soon be in this market.

The short video application, which has achieved success among young audiences, offers brands Possibility of targeting ads to platform users based on searches made by them. The innovation is very similar to the main model adopted by the Mountain View company.

Some advertisers have already had the opportunity to test the method by pledging to invest at least $10,000 per month for at least two months. Most positive resultsMainly in consumer electronics, clothing and beauty, according to digital advertising agency Tinuiti.

Although it only has a 3.4% share of the digital advertising market in the United States, TikTok’s advertising revenue is expected to increase by 38.1% by the end of this yearAccording to estimates. According to the publication, the platform tells advertisers that global daily search volume is over 3 billion.

artificial intelligence threat

Another strategy with the potential to capture share dominated by big tech is Perplexity, an artificial intelligence startup whose backers include Amazon founder Jeff Bezos. The company plans to start Show ads amidst responses generated on your platform It’s still in October.

Last month, the technology processed nearly 340 million searches, 46% of which led to additional questions, demonstrating the potential reach of the model. The company will allow advertisers sponsor these extra searches as a way to increase engagement between users and brands.

Google’s share of the US search ad market is expected to fall below 50% in 2025 for the first time in more than a decade, according to the publication. In addition to TikTok and AI, Amazon also poses a threat to the Mountain View giant’s dominanceThis year it reached a share of 22.3%.