New rivals for Google: AI and Tiktok

For years, Google has been virtually unbeatable in the search advertising business, a market that generates close to $300 billion annually and is crucial to its business. However, new platforms and startups powered by artificial intelligence are challenging its monopoly, which could mark an imminent change in internet advertising.

New market competitors

TikTok, the popular short video platform, has begun allowing brands to target their ads based on user searches, directly challenging Google. This change makes the platform a key new player as more and more consumers, especially younger ones, use it not only for entertainment, but also as a search engine in its own right.

On the other side is Perplexity, a Jeff Bezos-backed AI search startup, which also plans to enter the advertising market by launching ads under its own AI-generated responses, creating a new form of interaction between brands and consumers.

The future of search advertising

Google remains the undisputed leader in the search advertising market, with a current share of 50.5% in the United States. However, according to eMarketer, by 2025 its share is expected to drop below 50% for the first time in over a decade, due to the rise of competitors such as Amazon, TikTok and other emerging platforms.

Will Google be able to maintain its position or are we at the beginning of a major change in search advertising? With more and more alternatives, consumers are discovering and using other ways to search for their products and advertisers will have to be willing to adapt and explore different options beyond Google.