Amazon and TikTok emerge in search advertising business, Google's market share on the verge of falling below 50%

Google has dominated the $300 billion (approximately 46 trillion yen) search advertising market for over 10 years, securing a share of more than 50%. However, with the growth of Amazon and TikTok, it has become clear that Google's share is on the verge of falling below 50%.

Google's Dominant Search Business Is Under Attack From TikTok to AI - WSJ

According to a report by The Wall Street Journal based on data from research firm eMarketer, Google held 60% of the search advertising market as of 2018, but its share has been gradually declining since then, and is expected to fall below 50% to 48.3% by 2025.

On the other hand, Amazon is expanding its market share, which was only 10% in 2018, but is expected to exceed 20% in 2023 and reach 24.2% in 2025. It has been pointed out that Amazon's advertising business has become a revenue source that exceeds that of AWS and Amazon Prime.

And TikTok is seen as a strong rival to Google.

TikTok's greatest strength is its appeal to young people. Although its share of the advertising market as of 2024 is only 3.4%, the number of searches on TikTok per day is more than 3 billion, and 23% of users search for something within 30 seconds of opening the app.

Jeremy Cornfield, president of marketing firm Tinuiti, told The Wall Street Journal that TikTok's return on ad spend can sometimes rival that of Google.

Google has been accused of violating antitrust laws by maintaining its monopoly on smartphone search, and although it plans to appeal, it is undoubtedly in a more difficult situation than before.