AI-driven search ad spending set to surge to $26 billion by 2029, data shows
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.
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Straits Times
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- Straits Times
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Currency bid prices at 25 July 07:31 p.m. GMT Descript RIC Last U.S. Pct YTD High Low ion Close Chang Pct Bid Bid Previous e Session Dollar 97.633 97.451 0.19 per cent -10.01 97.906 97. index per cent 426 Euro/Dol 1.1746 1.1748 -0.01 13.46 per cent $1.176 $1. lar per cent 1 170 4 Dollar/Y 147.56 146.915 0.45 per cent -6.22 per cent 147.89 146 en 5 .84 Euro/Yen 173.33 172.67 0.38 per cent 6.19 per cent 173.61 172 .52 Dollar/S 0.7947 0.7954 -0.08 -12.42 0.7979 0.7 wiss per cent per cent 948 Sterling 1.3436 1.3512 -0.56 7.43 per cent $1.351 $1. /Dollar per cent 341 7 Dollar/C 1.3707 1.3637 0.52 per cent -4.67 per cent 1.3725 1.3 anadian 639 Aussie/D 0.6564 0.6591 -0.39 6.1 per cent $0.659 $0. ollar per cent 9 655 2 Euro/Swi 0.9333 0.9341 -0.09 -0.64 per cent 0.9354 0.9 ss per cent 329 Euro/Ste 0.874 0.8693 0.54 per cent 5.64 per cent 0.8743 0.8 rling 691 NZ 0.6014 0.6029 -0.22 7.51 per cent $0.603 0.6 Dollar/D per cent 7 ollar Dollar/N 10.1581 10.1237 0.34 per cent -10.63 10.182 10. orway per cent 7 115 9 Euro/Nor 11.9327 11.889 0.37 per cent 1.39 per cent 11.946 11. way 886 Dollar/S 9.5126 9.528 -0.16 -13.66 9.5555 9.5 weden per cent per cent 118 Euro/Swe 11.1744 11.2135 -0.35 -2.55 per cent 11.215 11. den per cent 5 166
