According to The Wall Street Journal report, “Google’s grip on search slips as TikTok and AI startup mount challenge.”
The rise of AI startup companies like ChatGPT has taken away Google’s shares of the advertising search market for two years. It is expected that Amazon will have 22.3% shares of the market this year with a 17.6% growth. On the other hand, Google has 50.5% shares with an overall 7.6% growth. This will lead Google’s share of the US market is expected to drop below 50% this year and assumed to have a $300 billion company loss.
TikTok, a short video platform will start and allow brands to ads based on users’ search preferences directly challenging Google Ads service. Moreover, AI startup, Amazon plans to introduce AI-generated answers with a monthly subscription of $20. It will add extra stars to the revenue of the company.
“For the first time in probably 15 years, we will have viable alternatives to Google,” said Nii Ahene, a veteran digital advertising executive.
However, Google showed a live example of how AI-powered ads make your research simple and authentic. They search “How do I get a grass stain out of jeans?” with all relevant methods and products that are appropriate for grass stains.
“We’re confident in this approach to monetizing our AI-powered experiences,” said Brendon Kraham, a Google vice president overseeing the search ads business. “We’ve been here before navigating these kinds of changes.”
The increased competition and rivalries have pressured Google to maintain its position in the US and advertising search market. In the past summer, Google also lost an antitrust case in the US search engine marketplace.
