Monday, March 06, 2017

Amazon & Pinterest Aim to Shake Up the Search Ad Market Dominated by Google

The Wall Street Journal had an interesting article about the competitive landscape of search advertising, which has been historically dominated Google. Last quarter alone, an estimated 64% of desktop searches (and 96% of all search-ad clicks on mobile devices) were generated through Google, and this dominant behavior translates to big advertising dollars.

However, other big-name competitors, like Amazon and Pinterest, are trying to throw their hat in the ring and bring more innovation and competitive pricing to the search advertising space, particularly through mobile.  I found this to be quite interesting, especially since consumers are continuing to use mobile devices to shop and make retail purchases, which should bode well for online maketplaces like Amazon (or portals like Pinterest that serve as a consumer's "starting point" and have an ability to drive significant consumer traffic to other brands/websites).  While Google is certainly the gorilla in the room, it will certainly have to be more competitive from a pricing standpoint if these other players prove to be a real threat.

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