Google’s Grip on Search Slips as TikTok and AI Startup Mount Challenge
TikTok has recently started allowing brands to target ads based on users' search queries and Perplexity, an AI search startup, plans to introduce ads later this month under its AI-generated answers. Google's share of the US search ad market is expected to drop below 50% next year for the first time in over a decade. Generative AI, which serves fully formed answers to user queries, is transforming search products. Companies are experimenting with ways to monetize ads with chatbots, but some analysts are uncertain whether ads in chatbots will be as valuable as traditional search because people might be less likely to click on them.