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Study Predicts Google’s Search Ad Revenue Will Drop While Amazon’s Grows

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Study Predicts Google’s Search Ad Revenue Will Drop While Amazon’s Grows

A new forecast from eMarkerter on US ad spending predicts that Google’s share of search revenue will drop over the next two years, while Amazon’s share will grow.

From eMarketer:

“The US search ad market overall will grow nearly 18% this year to reach $55.17 billion. Google will obtain a 73.1% share, translating to $40.33 billion. But, while Google will remain the dominant player for the next several years, its share is dropping. By 2021, it will capture 70.5% of the market.”

Study Predicts Google’s Search Ad Revenue Will Drop While Amazon’s Grows

Customers Turning to Amazon Before Google

Polling results from eMarketer suggest that more customers are turning to Amazon before Google when it comes to product searches.

Amazon’s search business has grown nearly 30% this year compared to last year. In turn, Amazon’s net search revenue has grown to $7.09 billion.

Amazon’s share of search ad market will be 12.9% this year, growing to 15.9% by 2021. As of 2018, eMarketer notes that Amazon surpassed Microsoft to become the second-largest ad platform for search in the US.

On the growth of Amazon’s search ad business, eMarketer principal analyst Nicole Perrin says:

“Amazon’s ad business has attracted massive increases in spending because advertisers can reach consumers during product queries, a time when they’re ready to buy.

Amazon has also rolled out better measurement and targeting tools, making it even more attractive for advertisers.”

Lastly, eMarketer notes that the search ad shares of Walmart, Target, eBay, and Pinterest are all growing at the expense of Google as well.

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Matt Southern

Lead News Writer at Search Engine Journal

Matt Southern has been the lead news writer at Search Engine Journal since 2013. With a degree in communications, Matt ... [Read full bio]

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