Beyond Google: The Rise of a Fragmented Search Landscape
Search advertising is shifting. AI-powered search engines like Perplexity AI are changing the game, and social platforms like TikTok are rolling out search ads. More are coming. Marketers whisper about Reddit, Amazon’s AI chatbot Rufus, and other new players. Google, the old king, fights its legal battles, forced to defend its dominance in court. The US government wants Google to sell its Chrome browser. Google will appeal. But cracks are forming.
Search is no longer just about keywords. AI has made it conversational. People ask questions the way they speak. Google’s iron grip is loosening, at least a little. Advertisers see an opportunity. Competitors circle, waiting to grab a piece of the market.
Last year, traditional search pulled in more than $90 billion in US ad spend, while social media ads took in over $86 billion. That balance may soon change. Marketers know they’ll need to spread their budgets across more platforms. But for now, most ad money still goes to Google. Brands hesitate to shift spending until they see real returns.
TikTok is rising as a search tool. People use it for recipes, product reviews, and advice, much like Reddit. TikTok pitched its search ad inventory last year, but its future remains uncertain with potential bans looming. Perplexity AI also made its move. Reddit, meanwhile, stays quiet about its search ads, though it recently launched Reddit Answers, an AI tool that compiles user responses. If Reddit introduces search ads, they could be geared toward conversions, not just awareness. The platform is already in talks with agencies, hinting at early tests.
Google isn’t standing still. It has expanded ads into AI-driven search overviews and Google Lens. Alphabet’s latest earnings show Google still holds power. In Q3 2024 alone, Google search pulled in $49.4 billion. The company will fight to keep its dominance. Its legal battles will stretch on, delaying any major shakeups.
Marketers are watching. Some are setting aside experimental budgets, increasing spending by 25% to test new platforms. TikTok search ads are already getting attention, but Perplexity AI hasn’t drawn much money yet. The way search ads are priced may change too. AI-driven search platforms could move from pay-per-click models to cost-per-query or impression-based pricing, shifting from performance marketing to brand awareness strategies. Perplexity AI, for example, sells ads on a CPM model, with rates between $30 and $60 per thousand impressions.
The question now: who will win the next phase of search advertising? No one has taken the lead yet. Marketers advise brands to adapt. Understand intent-based search. Strengthen owned media to show up in results. Experiment with new tools.
For now, the race is open. The old giant still stands, but challengers are coming. The search ad market will never be the same again.