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Brands across the US are increasing how much they spend on search advertising, with the overall US search ad spend predicted to reach almost $112 billion by next year. That is nearly double the amount spent in 2019, according to the new report from Insider Intelligence.

US Search Ad Spend 2019-2026 graph

This year, the data says $99 billion is being spent on search advertising. Much of this is driven by Google, which receives about 56% of the total ad spend. Google is in fact driving much of the growth in this area, outpacing all other traditional formats. 

While Microsoft remains the second-leading search ad platform, the data indicates that other platforms like Apple and Amazon may eventually overtake it. 

Data shows that Apple Search Ads will receive $5 billion dollars alone in 2022 revenue thanks to new ad and placement options which allow brands to find less competitive ad space.

Meanwhile, Amazon is gaining ground as the best platform for bottom-of-funnel customers. 

Interestingly, the report indicates that TikTok is also a growing force in search ad spending. The new data shows that up to 40% of 18- to 24-year-olds in the US already prefer to use TikTok and Instagram for their searches instead of Google. This may explain why recent studies showed that brands spent 60% more on overall advertising on the platform. 

Mobile Vs. Desktop

Unsurprisingly, mobile search advertising spend is far outpacing desktop by about two-thirds and shows no sign of slowing down. 

One indication of this is the fact that more than half of the U.S. population was reported to have used a smartphone to make an online search in 2016. By next year, that number should reach 70% by 2023. 

Privacy-Focused Platforms Lose Steam

After years of slow growth, privacy-first platforms like DuckDuckGo appear to be losing traction with US searchers. This is reflected in other recent reports, including data showing that DuckDuckGo had fallen to less than 100 million daily searches in June. 

For more findings about the current state of search advertising, download the full report from Insider Intelligence here.

iphone-410324_640

Since its launch in 2010, Apple’s ad service known as iAd has seemed largely like an afterthought. In fact, the company had announced earlier this year that iAd’s services were being discontinued. This all makes the iPhone maker’s latest announcement a bit of a surprise.

Ahead of this year’s Worldwide Developer Conference (WWDC), Apple announced it is revamping its App Store. One major part of this reworking is the introduction of paid search ads for apps in the company’s app store.

Apple is starting small by adding a single paid ad to the top of search results within the App Store for users in the US. However, there already appears to be pushback from users and developers who say they would prefer improvements to the organic search results before including paid ads.

In an interview with the Telegraph, Apple’s senior vice president of marketing, Phil Schiller, explained that the company believes paid search ads will allow developers to focus their marketing budgets specifically in places where people are most likely to download their apps.

“There are hundreds of millions of searches on the App Store every week, and 65pc of app downloads are driven by search,” he said. “It’s a very valuable tool for users and developers. For developers, this will be very efficient marketing.”

The ads will be available in a self-serve auction-based platform similar to Google’s AdWords with no initial minimum spends.

To prepare for the revamp of the app store, Apple is adding ad features like its Search Match feature, which is comparable to Google AdWords Universal App Campaigns. The feature allows advertisers who aren’t familiar with the platform or are limited on time to create an ad campaign in as few steps as possible.

Apple Search Ads will not officially launch until the fall, but the company is allowing developers and marketers to get familiar with the platform through an opt-in beta from Apple’s developer portal.