In 2020, US search ad spending is set to grow 5.9% despite the pandemic. This is stated in the new forecast of the analytical company eMarketer.
In an earlier forecast released this year, the company expected the market to fall in response to lower spending in the travel industry. However, growth in other segments such as e-commerce has forced eMarketer to revise its estimates.
The shift of retail sales to digital channels is driving an increase in search ad spend on the part of online retailers, reports SearchEngines. And this is not a temporary shift. EMarketer describes these changes as far-reaching.
What’s more, search ad spending is expected to exceed pre-pandemic predictions by 2022, notes NIX Solutions.
In 2020, advertisers will spend $59.22 billion on search ads versus $54.37 billion in the previous forecast.
The main growth driver will be mobile search advertising.
By 2024, advertisers will spend $99.2 billion on searches, up from $91.32 billion in the previous forecast.
The main driver of growth will again be mobile search advertising, which will account for two-thirds of search ad spending in 2024.
It is also expected that in the future, Google will lose market share in favor of Amazon, which is growing at a faster pace.
In 2022, Google’s share of the US search advertising market will fall from 61.3% to 54.9%. At the same time, Amazon’s share will increase to 21.5%.