AI-driven search ad spending set to surge to $26 billion by 2029, data shows
Spending on AI-powered search advertising is poised to surge to nearly $26 billion by 2029 from just over $1 billion this year in the U.S., driven by rapid adoption of the technology and more sophisticated user targeting, data from Emarketer showed on Wednesday.
Companies that rely on traditional keyword-based search ads could experience revenue declines due to the growing popularity of AI search ads, which offer greater convenience and engagement for users, according to the research firm.
WHY IT'S IMPORTANT
Search giants such as Alphabet-owned Google and Microsoft's Bing have added AI capabilities to better compete with chatbots such as OpenAI's ChatGPT and Perplexity AI, which provide users with direct information without requiring to click through multiple results.
Apple is exploring the integration of AI-driven search capabilities into its Safari browser, potentially moving away from its longstanding partnership with Google.
The report has come as concerns grew about users increasingly turning to the chatbots for conversational search and AI-powered search results could upend business models of some companies.
Online education firm Chegg said in May that it would lay off about 248 employees as it looks to cut costs and streamline operations because students are using AI-powered tools including ChatGPT over traditional edtech platforms.
QUOTE
"Publishers and other sites are feeling the pain from AI search. As they lose out on traffic, we're seeing publishers lean into subscriptions and paid AI licensing deals to bolster revenue," Emarketer analyst Minda Smiley said.
GRAPHIC
AI search ad spending is expected to constitute nearly 1 per cent of total search ad spending this year and 13.6 per cent by 2029 in the U.S., according to Emarketer.
Sectors such as financial services, technology, telecom, and healthcare are embracing AI as they are seeing clear advantages in using the technology to enhance their ad strategies, while the retail industry's adoption is slow, the report said.
Google recently announced the expansion of its AI-powered search capabilities into the consumer packaged goods sector through enhancements in Google Shopping.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
9 hours ago
- CNA
I started using corporate lingo ironically – and now I can't stop
I nodded as a coworker listed out a few suggestions on ways her team and mine could collaborate in the next few months. 'Yeah, that sounds like a good way to synergise,' I said. And then we both made a face. Almost a decade ago, when I started my first official 'office job', I made a silent vow to myself that I would never become One of Those. A corporate drone on autopilot, mindlessly regurgitating buzzwords and key phrases day in and day out to no real end until I would one day reach my final form: a glorified LinkedIn bot. I didn't really 'use' corporate lingo so much as make fun of it – in a good-natured, tongue-in-cheek sort of way. It was a quick fix for lightening the mood for everybody, myself included: 'Well, since that project fell through, guess that's one less loop to close, huh?' But these days, I find myself starting to slip into corporate lingo unironically, the same way I started doing years ago with skinny jeans, emojis, and the acronym 'LOL'. LINGO LIMBO More people are expressing annoyance or frustration with it these days, especially on social media, but make no mistake – corporate lingo is nothing new. From the 'value chains' of the 1980s and 1990s to the 'key performance indicators' you hear your own manager wax on about today, such jargon has long been a mainstay of working life. Like with most things that eventually trigger widespread discussions and accusations online of being 'annoying' or 'cringe', there's a legitimately useful element to corporate lingo's villain origin story. Business and work have grown more complex over the last few decades. Thanks to globalisation, the systems we operate in have become more interconnected and as a result, more expansive and intricate. So have the individual roles we play in those systems. We started needing quicker, simpler ways to sum up big or complicated ideas – or ideas that weren't that big or complicated, but were just a mouthful to say. After all, it's definitely easier to say 'outsourcing' than 'farming this out to a peripheral individual, group or organisation so I have more time and energy to focus on more important things'. But over time, something happened to corporate lingo: People started creating buzzwords and phrases for things and situations that didn't seem to require it at all. We stopped postponing or revisiting discussions of an issue and started 'circling back' instead. We eschewed talking to each other and started 'touching base' instead. And then people started 'checking in', but not just any checks, mind you. Temperature checks. Sense checks. Vibe checks. Instead of coining new terms to neatly condense big, complicated ideas, we now seem to be finding overly complex ways to phrase very simple things. WHEN YOU SAY NOTHING AT ALL Again, it's not a bad thing to develop lingo over the course of engaging with other fellow humans in labour. Well before we became office dwellers, plenty of colloquialisms from agricultural work had been leaving the farm to become part of everyday English. For example, "No reason to have a cow about that" or "beat a dead horse". Such jargon of yore does the work it's meant to do, which is to replace a wordy sentiment or thought process with a bite-sized turn of phrase. In comparison, what exactly does the phrase 'moving the needle' accomplish, particularly when in most cases, you immediately have to go on to explain exactly what needle you're hoping to move and in which direction? (Yes, we've done it, we've made shop-talk more efficient – all we had to do was transform our seven-word statement into a 15-word run-on behemoth.) The danger is when we're more concerned about communication for communication's sake, rather than the purposes and objectives for which we're communicating. Are we trying to be in the know, or simply appear so to others? Are we really achieving or improving productivity, or just performing it? MAKE WORK JARGON WORK AGAIN Either way, corporate lingo is here to stay. The exact words and phrases in rotation may come and go, but humans will always want to find a way to jazz up interpersonal communication simply because we're creative, social beings. So is there a way to salvage this? (Or, for the corporate jargon-heads out there: What are the actionable insights and key takeaways to be derived from this?) For my part, I still find myself resisting what I feel are inorganic attempts to shoehorn unnecessary lingo into conversations about work, but I'm trying not to be pedantic about it. If someone says 'Can we align or bridge the gap on this?', I respond, 'Sure, what's unclear right now?' If someone says 'Can I get a sense check on when this might be completed?', I give them a date. (But maybe I'll also have a little rant to a fellow coworker later on about why the question can't simply be 'When will this be done?') Instead of the snark I used to deploy perhaps a little too freely in response to cringey corporate jargon, I try to reach for the same attitude I employ whenever I'm speaking with someone who may not be entirely fluent in English – if I understand what they're saying, maybe how they're saying it doesn't have to matter as much. Still, at the end of the day, there's never any harm in asking, plain and simple: 'What do you mean?'
Straits Times
13 hours ago
- Straits Times
Pope Leo warns politicians of the challenges posed by AI
VATICAN CITY - Pope Leo warned politicians on Saturday of the challenges posed by the rise of artificial intelligence (AI), addressing its potential impact on younger people as a prime concern. Speaking at an event attended by Italian Prime Minister Giorgia Meloni and parliamentary delegations from 68 countries, Leo revisited a topic that he has raised on a number of occasions during the first few weeks of his papacy. "In particular, it must not be forgotten that artificial intelligence functions as a tool for the good of human beings, not to diminish them or even to replace them," Leo said at an event held as part of the Roman Catholic Jubilee or Holy Year. AI proponents say it will speed up scientific and technological progress and help people to carry out routine tasks, granting them more time to pursue higher-value and creative work. The U.S.-born pontiff said attention was needed to protect "healthy, fair and sound lifestyles, especially for the good of younger generations." He noted that AI's "static memory" was in no way comparable to the "creative, dynamic" power of human memory. "Our personal life has greater value than any algorithm, and social relationships require spaces for development that far transcend the limited patterns that any soulless machine can pre-package," he said. Leo, who became pope in May, has spoken previously of the threat posed by AI to jobs and has called on journalists to use it responsibly. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
18 hours ago
- CNA
South Korea's trade chief heads to US from Jun 22 as Trump tariffs cast long shadow
SEOUL: South Korea's Trade Minister Yeo Han-koo will visit the United States from Jun 22 to Jun 27, the trade ministry said on Saturday (Jun 21), amid intensifying concerns over the impact of US tariffs. The visit will include discussions with US Trade Representative Jamieson Greer and the third round of bilateral technical discussions, a ministry official told Reuters. Further details about the meetings were not disclosed. The two countries began trade talks in April, with Seoul seeking a path to slash the stiff tariffs US President Donald Trump is angling to impose. South Korea is currently facing a 10 per cent blanket tariff and a 25 per cent country-specific duty temporarily paused for 90 days. It agreed with the US during initial trade negotiations in April to craft a trade deal reducing tariffs by Jul 8. However, political uncertainty triggered by leadership upheavals had stalled progress. "Since a South Korea-US summit has yet to take place and key ministers have not been appointed under the new administration, negotiations are likely to focus on areas that the trade ministry can manage - excluding major issues such as defence cost-sharing and exchange rates," Heo Yoon, an economics professor at Sogang University, said. "Given these circumstances, reaching a comprehensive agreement on key negotiation frameworks and agendas is expected to be challenging." The announcement of Yeo's trip to Washington comes days after South Korea launched a task force on negotiations with the US. It comprises industry ministry officials overseeing trade, manufacturing, energy and investment. According to the Industry Ministry, it will deal with tariff and non-tariff matters across industry and the energy sector, while also coordinating with the private sector. Yeo, who heads the task force, said the team has a major responsibility as "businesses and the public have experienced great difficulties due to US tariff measures".
