Digital Gabe
Cutting Edge Commentary On All Things Media

Google Search Revenue Migrating To Amazon?

0 600

Remember this golden rule of marketing – ad dollars ALWAYS follow usage.  It’s as unavoidable as gravity.  Now it looks like this rule is even starting to catch up to Google’s mighty Search monetization machine.  For a baseline consider these numbers.  eMarketer estimates that 86% of Alphabet’s (Google’s parent co) revenue comes from ad sales, which is pegged at an astounding $95B in 2018.  Of that total 83% is derived from Search ads – which means Google is trying to defend $79B in annual Search revenue.

Now consider what’s happening with Search.  More and more searches which used to be typed by keyboard are now being spoken into a smartphone or smartspeaker.  According to Forbes it’s estimated that by 2020 50% of all searches in the US will be made using our voices – so there’s a massive transformation under way.  Right now the biggest player in the voice to search/purchase space is Amazon, so is it any surprise that ad dollars are migrating from Google to Amazon?  By some early estimates brands are moving 50-60% of their Search dollars, which could create a great leveling of the playing field at the upper end of the digital ad sales market.

You can understand why Amazon and its investors are so excited about this new revenue stream.  You can also bet Larry Page, Sundar Pichai and the rest of team Google are getting equally nervous.

 

Subscribe to the newsletter