The battle for share of revenue in paid search advertising continues this year amongst Google, Amazon and Apple. In the midst of this unwholesome drama, Google’s share of search advertising revenue is declining and will continue to go down each year, as competitors increase their plans to control market share.
According to a report by Forrester, it is expected that Digital advertising revenue will hit $85 billion this year, nearly half of it from paid search advertising—and most of that, in turn, spent with Google. Yet the overall search market on mobile is growing, and that growth isn’t going to Google but instead to rivals such as Amazon, Pinterest and Apple, says Brandon Verblow, an analyst at Forrester.
“We show that Google’s share is eroding not because anyone is cannibalizing it, but because there are other sources of search that are incrementally increasing the size of the market overall,” Verblow says. “Google won’t capture all of it.”
Brandcampaign.com.ng gathered that as As offline dollars tilts to mobile, the search category itself will continue to grow, but unlike desktop—where Google controls a larger percentage of the market share —mobile has a number of top flight players that are ready to move up the ladder.
It is reported by Forrester that Google’s search market share has nosedived each year from 88 percent in 2011 to 78 percent in 2016,. Although Google’s search ad business grew at low-teens rate over that period, the market as a whole improved faster, Forrester says, with Google gathering more momentum from mobile.
Forrester says Amazon is exploiting Google’s “weakness” in online shopping, as shoppers are increasingly starting their product searches on Amazon instead of Google. According to the report, consumers are 2.5 times more likely to look for or scan about about the brand of a recent purchase from Amazon versus any other search. “This erosion is likely to continue” for Google, the report said.
Verblow adds that CPG marketers tends to greatly increase their ad spend on platforms such as Amazon, which has its own search ad business.
“Google is not going to cede shopping to Amazon,” Verblow says. “And while Amazon Alexa seems to be the leader in terms of voice search, I would definitely not count Google out of that segment. Google could turn out to be the dominant player in the voice category and gain market share right away.”