The decline is historic: Google will lose absolute dominance of the search advertising market in 2025, falling below 50% share for the first time in fifteen years, according to an eMarketer report that analyzes Wall Street Journal. Three decades of dominant dominance are beginning to fade.
Why is this important?. This decline marks the end of the era where Google was synonymous with internet search. Changes in digital consumption habits and the emergence of AI are changing the rules of the game.
panoramic. There are three threats that pertain to this perfect storm;
- The proliferation of AI-generated content, which is corrupted, what is the result.
- Migration to specialized platforms: Amazon for shopping, TikTok for trends, etc.
- AI and chatbots are changing the way information is searched.
In figures:
- Google has introduced $175 billion in search advertising by 2023. 57% of the first material of the alphabet.
- Google’s business ad growth slows to 7.6%.
- Amazon business sales increased 17.6%.
- TikTok registers 3 billion daily searches.
Between the lines. The real risk for Google is not so much direct competition a radical change in the way information is sought. The new generations prefer more immersive and audiovisual platforms with immediate responses, as opposed to the classic model of ten blue links.
But Google is more than capable of migrating from that model to one based on synthetic answers for each search.is a Gemini– but now it means going from a model that gives you money to another that costs you money.
The opposite. Google is trying to maintain its relevance with this forced and gradual adaptation to the pattern of responses generated by AI, but its rivals have already adapted to a different paradigm.
- TikTok offers visual responses and more experiments.
- Amazon dominates the shopping experience.
- Complexity o ChatGPT provide direct and contextualized responses.
Go deeper. The paradox in which Google lives is threatening its business model. If you speed up the summaries to AI generated summaries, you will further reduce the clicks on your ads and therefore threaten the web ecosystem on which you depend.
That not only puts Google’s dominance in searches at risk, but its entire business model. Its sales revenue makes the company profitable, but it also supports many bets that need profitable support.
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Featured image | Nathan Rebouças on Unsplash
