YCD News – Social networks and e-commerce media are complicating “search” initiatives. As published on the IPMARK.com portal, search engine advertising is one of the largest drivers of digital investment, and budgets are expected to continue to grow cumulatively despite the challenging macroeconomic environment in which brands operate.
According to WARC Media and GroupM, the medium is expected to account for 28.8% of total global advertising investment by 2023, with a budget of more than $256.5 billion. One of these is search engine advertising, which will grow by 6.2% compared to investment in 2022.
The same study shows that 56% of advertisers plan to increase their online search advertising budgets, with 53% of them allocating more of their budgets to ads on the Google search network. And, given users’ new search patterns, marketing managers are facing greater complexity when considering the game itself.
Seventy-six percent of advertisers plan to increase their advertising budgets on TikTok, an investment aimed beyond a brand’s simple social media strategy. As WARC Media remembers in its Search 3.0 report, more and more young users are searching for services and products on TikTok or Instagram. In the case of the Chinese version of the ByteBeat app Shake , there are more than 1 billion daily product searches on the platform.
The new search channels used by certain groups of users encourage greater distribution of games, but are also more complex to measure. According to the WARC report, managing search ads across multiple media owners, “some of which only offer trending tags, will require a new approach to campaign analysis.”
Amazon, the e-commerce media enabler
In addition to searching on social networks, more and more users will visit e-commerce platforms directly when looking for products or services, especially Amazon.
Andy Jassy, Amazon’s president and CEO, recognizes the role his platform plays in the user buying process. In his recent letter to investors, he recalled that his forms of advertising – sponsored products and sponsored brands – have been an integral part of the Amazon shopping experience for more than a decade.
“However, unlike brick-and-mortar retailers, given our understanding of different buying behaviors and our deep investment in machine learning algorithms, Amazon can make these sponsored products relevant to consumers who are searching for them,” the executive wrote. As a result, its advertising division, Amazon Advertising, achieved high growth last year: up 25% compared to 2021, reaching $31 billion in revenue.
E-commerce media is just another factor that encourages complexity when planning search advertising. According to WARC Media, the medium is expected to grow by 10.1% to $122 billion in 2023. That amount, combined with traditional search engine advertising, will exceed $350.4 billion this year, with a quarter of that going to retail media advertising.
Another report illustrates the erosion of the digital advertising duopoly caused by the largest budgets managed by Amazon, YCD has learned. According to Insider Intelligence data collected by Axion, Google and Meta’s combined ad investment through 2022 is less than 50 percent of total U.S. digital investment, based on the largest program dedicated to Amazon – which is expected to monopolize by 2024 12.7%.