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Google Search may be facing a growing threat from newer rivals such as artificial intelligence and social video.
The Wall Street Journal reports that Google’s $300 billion search advertising business is now facing competition from platforms like ByteDance’s TikTok. TikTok has introduced a feature allowing brands to target consumers based on their search queries. With an estimated 170 million users in the United States, the short-form video platform poses a direct challenge to Google’s primary revenue stream.
Advertisers continue to be attracted to TikTok due to its strong appeal among younger adults, a trend that persists despite efforts by the US government to force the app to cut ties with its Chinese owner or risk a potential ban. In a presentation to advertisers seen by the Journal, TikTok highlighted that “search behaviors have evolved.” It revealed a global daily search volume exceeding three billion. In addition, 23 percent of users begin searching for something within 30 seconds of opening the app.
A report from ADOBE also found that nearly one in ten Gen Zers are more likely to rely on TikTok than Google as a search engine.
Google search competitors
Another emerging contender is Perplexity AI, a search venture backed by Amazon founder Jeff Bezos. Starting this month, the platform will begin displaying ads alongside AI-generated answers, a shift from its previous reliance on subscription revenue for advanced AI features.
Perplexity AI was valued at around $3 billion following a funding round this summer, which also included investment from SoftBank. In comparison, OpenAI’s valuation stands at nearly $160 billion, while Elon Musk’s xAI is valued at $24 billion, according to CrunchBase.
Citing research firm eMarketer, the Journal claims that Google’s share of the US search ad market is expected to drop below 50 percent next year for the first time in over ten years.
In May, ReadWrite reported that a ChatGPT-powered search engine was already in development. According to an insider, this app would combine the search prowess of Microsoft’s Bing with ChatGPT’s OpenAI language model to generate more detailed search results.
With Microsoft being a major investor in OpenAI, the implementation of Bing feels like an especially likely — and tactical move by the tech giant.
Featured image: Canva
