Search behavior is undergoing a rapid evolution. While Google remains the dominant player, the emergence of generative AI, the rise of retail media networks, and the distinctive search habits of Gen Z are reshaping the search landscape. Below, we explore five key charts that shed light on these transformations.
- AI’s Expanding Influence on Search
Despite the growing prominence of AI-powered search innovations from Microsoft and Apple, Google continues to lead in search ad spend. Projections indicate Google will command approximately 70% of the US traditional search ad spend by 2026.
Key AI Developments:
- Google: Introduction of AI Overviews and the AI search bot Gemini.
- Microsoft: Collaboration with OpenAI to enhance Bing.
- Startups: Increased popularity of AI-powered search platforms like Perplexity.
Implications:
Paid search marketers should maintain their current strategies for now, given Google’s significant 56.6% share of worldwide search ad spend. However, content marketers, SEO professionals, and publishers need to monitor traffic trends as AI summarization gains traction, potentially reducing clicks to websites.
- AI’s Role in Enhancing Search Relevance
A notable 39% of marketing professionals globally are leveraging AI to refine search relevance and product discovery. This optimization extends beyond search engines to retailer websites, with companies like Walmart employing generative AI for improved search results.
Recommendations:
As search relevance advances and Google’s AI Overviews become prevalent, websites must continually optimize their content to increase the likelihood of being featured. While AI-optimized search may divert clicks, complex queries that generative AI struggles with present opportunities for SEO optimization. Paid search ads can also help brands maintain top positions in retailer search results.
- The Shift of Search Spend to Retail Media
Retail media is capturing an increasing share of paid search spending. Notably, 59.3% of marketers worldwide intend to boost their retail media search ad spend this year. This segment is projected to account for 27.2% of US search ad spend in 2024, with continued growth anticipated through 2028.
Strategic Considerations:
Brands must consider paid search advertising across both search engines and retailer websites, particularly due to the high purchase intent associated with searches on retailer platforms.
- Amazon’s Dominance in Shopping Searches
Amazon has emerged as the preferred starting point for shopping searches for 56% of US consumers, surpassing search engines (42%), Walmart (29%), and TikTok (7%).
The Role of Social Media:
While an increasing number of US internet users commence their shopping journeys on social media, platforms like TikTok and Instagram have yet to become the primary destination for most shoppers.
Marketing Focus:
Marketers cannot disregard social media or search engines, especially for product discovery. However, when prioritizing marketing efforts towards platforms where consumers are most likely to purchase, Amazon stands out as a strategic choice.
- Gen Z’s Diversified Search Preferences
Although search engines remain the top choice for finding information across all generations, Gen Z demonstrates a higher inclination towards alternatives like social media, voice search, image search, and AI chatbots like ChatGPT.
Reaching Gen Z:
To effectively engage with Gen Z, brands must recognize their diverse search preferences and ensure their content is accessible through various channels beyond Google.
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