logo
AI-driven search ad spending set to surge to $26 billion by 2029, data shows

AI-driven search ad spending set to surge to $26 billion by 2029, data shows

CNA04-06-2025
Spending on AI-powered search advertising is poised to surge to nearly $26 billion by 2029 from just over $1 billion this year in the U.S., driven by rapid adoption of the technology and more sophisticated user targeting, data from Emarketer showed on Wednesday.
Companies that rely on traditional keyword-based search ads could experience revenue declines due to the growing popularity of AI search ads, which offer greater convenience and engagement for users, according to the research firm.
WHY IT'S IMPORTANT
Search giants such as Alphabet-owned Google and Microsoft's Bing have added AI capabilities to better compete with chatbots such as OpenAI's ChatGPT and Perplexity AI, which provide users with direct information without requiring to click through multiple results.
Apple is exploring the integration of AI-driven search capabilities into its Safari browser, potentially moving away from its longstanding partnership with Google.
The report has come as concerns grew about users increasingly turning to the chatbots for conversational search and AI-powered search results could upend business models of some companies.
Online education firm Chegg said in May that it would lay off about 248 employees as it looks to cut costs and streamline operations because students are using AI-powered tools including ChatGPT over traditional edtech platforms.
QUOTE
"Publishers and other sites are feeling the pain from AI search. As they lose out on traffic, we're seeing publishers lean into subscriptions and paid AI licensing deals to bolster revenue," Emarketer analyst Minda Smiley said.
GRAPHIC
AI search ad spending is expected to constitute nearly 1 per cent of total search ad spending this year and 13.6 per cent by 2029 in the U.S., according to Emarketer.
Sectors such as financial services, technology, telecom, and healthcare are embracing AI as they are seeing clear advantages in using the technology to enhance their ad strategies, while the retail industry's adoption is slow, the report said.
Google recently announced the expansion of its AI-powered search capabilities into the consumer packaged goods sector through enhancements in Google Shopping.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Video-sharing app Vine is returning 'in AI form', Musk says
Video-sharing app Vine is returning 'in AI form', Musk says

CNA

time31 minutes ago

  • CNA

Video-sharing app Vine is returning 'in AI form', Musk says

Elon Musk's social media company X is bringing back popular video-sharing platform Vine in "AI form", the billionaire tech-entrepreneur said on Thursday, almost nine years after the app was discontinued. Musk made the announcement in a post on X, formerly Twitter, but did not provide further details. X did not immediately respond to a Reuters request seeking more information on the reboot. The Tesla CEO has previously hinted at reviving Vine multiple times since he acquired Twitter in 2022, including posting public polls on X about bringing back the short-form video app that was popular in the 2010s. Twitter introduced Vine in January 2013, allowing users to share small snippets of video that were six seconds or less, with the app quickly gaining popularity among video bloggers and attracting millions of followers. In late 2016, Twitter announced it would discontinue the app. The six-second long video format could work favorably for AI-generated content, as most AI video generation tools available currently typically generate short-form content while longer video clips come with increased costs.

Jones Lang LaSalle exits advisory role in sale of New York's Roosevelt Hotel
Jones Lang LaSalle exits advisory role in sale of New York's Roosevelt Hotel

CNA

time31 minutes ago

  • CNA

Jones Lang LaSalle exits advisory role in sale of New York's Roosevelt Hotel

KARACHI, Pakistan :Global real estate firm Jones Lang LaSalle (JLL) has quit its role as financial adviser on the partial sale of the Roosevelt Hotel in New York City, which is owned by Pakistan International Airlines, to avoid client conflict of interest, Pakistan said on Thursday. Pakistan is selling a minority stake in the hotel and looking for a redevelopment partner as it disposes of certain state assets under a privatisation programme agreed under a $7 billion IMF-backed reform plan. "The heightened interest in Roosevelt Hotel from many of JLL's own clients, post cancellation of its lease agreement with NYC, has put them in a compromising position,' Pakistan's Privatization Commission said in a statement, adding the firm resigned to avoid any 'perceived or actual' conflict of interest. JLL's exit will not derail the stake sale and a new adviser will be hired "on a fast track basis", the Commission said. Earlier this month, a senior official told Reuters that Pakistan is eyeing at least a $1 billion valuation and is ready to part with a minority stake in the property as it scouts for a redevelopment partner. The Roosevelt Hotel, a century-old property named after former U.S. President Theodore Roosevelt near New York's Grand Central Station, is one of Pakistan's top foreign assets. It is up for sale alongside power distribution companies in Pakistan and other state firms including PIA. The hotel was shut in 2020 due to losses and later leased to New York City as a migrant shelter. That lease ended earlier this year, and the property now sits vacant.

Intel beats shareholder lawsuit over $32 billion stock plunge
Intel beats shareholder lawsuit over $32 billion stock plunge

CNA

timean hour ago

  • CNA

Intel beats shareholder lawsuit over $32 billion stock plunge

A federal judge dismissed a lawsuit accusing Intel of defrauding shareholders by concealing problems in a business where it manufactured chips for outside customers, leading to a $32 billion one-day plunge in its market value. While saying she "understands plaintiffs' frustrations," U.S. District Judge Trina Thompson in San Francisco ruled on Wednesday that Intel did not wait too long to reveal a $7 billion fiscal 2023 operating loss in its foundry business. Intel's stock price sank 26 per cent last August 2, one day after the chipmaker announced more than 15,000 layoffs and suspended its dividend, hoping to save $10 billion in 2025. The Santa Clara, California-based company created the foundry business in 2021 to serve customers including and Qualcomm, while still making chips and wafers for internal use. In a 21-page decision, Thompson said Intel made clear that foundry results would be "obscured" until 2024, meaning its earlier financial reporting was not false and misleading. Thompson also cited an "overarching policy consideration" that because Intel's public statements suggested a "trial-and-error" approach to the foundry business, the company could have faced risks from reporting preliminary, unaudited data. The judge dismissed an earlier version of the lawsuit in March. Wednesday's dismissal was with prejudice, meaning the shareholders cannot sue again. A federal judge dismissed a lawsuit accusing Intel of defrauding shareholders by concealing problems in a business where it manufactured chips for outside customers, leading to a $32 billion one-day plunge in its market value. While saying she "understands plaintiffs' frustrations," U.S. District Judge Trina Thompson in San Francisco ruled on Wednesday that Intel did not wait too long to reveal a $7 billion fiscal 2023 operating loss in its foundry business. Intel's stock price sank 26 per cent last August 2, one day after the chipmaker announced more than 15,000 layoffs and suspended its dividend, hoping to save $10 billion in 2025. The Santa Clara, California-based company created the foundry business in 2021 to serve customers including and Qualcomm, while still making chips and wafers for internal use. In a 21-page decision, Thompson said Intel made clear that foundry results would be "obscured" until 2024, meaning its earlier financial reporting was not false and misleading. Thompson also cited an "overarching policy consideration" that because Intel's public statements suggested a "trial-and-error" approach to the foundry business, the company could have faced risks from reporting preliminary, unaudited data. The judge dismissed an earlier version of the lawsuit in March. Wednesday's dismissal was with prejudice, meaning the shareholders cannot sue again. A federal judge dismissed a lawsuit accusing Intel of defrauding shareholders by concealing problems in a business where it manufactured chips for outside customers, leading to a $32 billion one-day plunge in its market value. While saying she "understands plaintiffs' frustrations," U.S. District Judge Trina Thompson in San Francisco ruled on Wednesday that Intel did not wait too long to reveal a $7 billion fiscal 2023 operating loss in its foundry business. Intel's stock price sank 26 per cent last August 2, one day after the chipmaker announced more than 15,000 layoffs and suspended its dividend, hoping to save $10 billion in 2025. The Santa Clara, California-based company created the foundry business in 2021 to serve customers including and Qualcomm, while still making chips and wafers for internal use. In a 21-page decision, Thompson said Intel made clear that foundry results would be "obscured" until 2024, meaning its earlier financial reporting was not false and misleading. Thompson also cited an "overarching policy consideration" that because Intel's public statements suggested a "trial-and-error" approach to the foundry business, the company could have faced risks from reporting preliminary, unaudited data. The judge dismissed an earlier version of the lawsuit in March. Wednesday's dismissal was with prejudice, meaning the shareholders cannot sue again. Intel had been accused of inflating its stock price from January 25 to August 1, 2024. Lawyers for the shareholders did not immediately respond to requests for comment on Thursday. Intel and its lawyers did not immediately respond to similar requests. Intel has struggled to compete with rival chipmakers such as Nvidia, Advanced Micro Devices, Samsung Electronics and Taiwan's TSMC. and benefit from growth in artificial intelligence. The company lost $18.8 billion in 2024, its first annual loss since 1986. The case is In re Intel Corp Securities Litigation, U.S. District Court, Northern District of California, No. 24-02683. Lawyers for the shareholders did not immediately respond to requests for comment on Thursday. Intel and its lawyers did not immediately respond to similar requests. Intel has struggled to compete with rival chipmakers such as Nvidia, Advanced Micro Devices, Samsung Electronics and Taiwan's TSMC. and benefit from growth in artificial intelligence. The company lost $18.8 billion in 2024, its first annual loss since 1986. The case is In re Intel Corp Securities Litigation, U.S. District Court, Northern District of California, No. 24-02683. Lawyers for the shareholders did not immediately respond to requests for comment on Thursday. Intel and its lawyers did not immediately respond to similar requests. Intel has struggled to compete with rival chipmakers such as Nvidia, Advanced Micro Devices, Samsung Electronics and Taiwan's TSMC, and benefit from growth in artificial intelligence. The company lost $18.8 billion in 2024, its first annual loss since 1986.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store