A recent report from eMarketer revealed that Google still holds a significant share of search ad revenue. By the end of 2019, the company would have netted over 73 percent of the total search advertising spending in the United States.
While that’s a bulk of the market, the company’s revenue share seems to be on a slow, steady decline.
Currently, Google’s search revenue is 1 percent down from what it was last year. And eMarketer suggests that by the end of the 2021 forecast period, the company would have more revenue market.
Why the steady decline, you ask?
Amazon‘s search advertising has continued to grow over the years. Last year, the retail giant surpassed Microsoft to become the second-biggest online search advertising in the United States.
Although Google owns the top spot, the report suggests that the search engine company will lose 2 percent point to Amazon by 2021. This is in line with a previous study that predicted the retail giant’s rise.
The Growth of Search Advertising
Search ad spending in the U.S. has grown tremendously in the past couple of years. However, the report suggests that it’ll increase even more.
According to eMarketer, search outlays will increase by nearly 18 percent this year. What’s more, the double-digit growth will continue through 2021.
Search advertising’s growth rate appears to be in line with digital advertising as a whole. The report predicts that search ads will own just less than a 43 percent share of the total digital market through 2023.
Also, eMarketer’s study emphasizes the importance of search placement for advertisers. For example, Amazon’s ad business has enjoyed increased ad spendings recently because of its placement options.
The report reads:
“Amazon’s ad business has attracted massive increases in ad spending because advertisers can reach audiences via interest-based signals—product queries—and in a context where they’re ready to buy.”
With that said, the report predicts that voice search may be the future of search advertising. It also stated that visual search could take-off on smaller platforms like Pinterest.
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