Google has dominated the search market for years. In
December, Google received 64% of desktop searches and the company is
expected to receive over 75% of search ad spending in 2017.
That said, recently there are signs that
Google’s dominance may have peaked. Analysts are predicting that the search ad
market could see significant changes in the years to come. Increasingly,
consumers are bypassing Google and going directly to sites like Amazon and
Pinterest for their searches.
Advertisers are excited about these challenges to
Google. To begin, high levels of competition on Google can drive up prices, and
advertisers have found that they can find steeper discounts for search ads on
other sites. More broadly, advertisers are beginning to question whether
buying on Google is worth it. It is unclear whether advertisers are actually
influencing consumer behavior with their ads or if they are simply buying ads for
products that consumers would have purchased anyway -- the thought being that people search on Google
after they have already made up their mind. To that end, advertisers are
hungry to find places to reach consumers who are undecided, and Amazon and
Pinterest are two great places to do so.
https://www.wsj.com/articles/amazon-and-pinterest-threaten-to-shake-up-the-search-ad-market-1488798004
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