I saw this article by the Wall Street Journal on Daring Fireball last night. I wrote a blog post last week (here) about the DOJ asking for Chrome to be separated from Google and mentioned that it seems like this is five or so years too late for this action. From an IT perspective, we see our clients using Google less and less as well as personally. Whether it be a specific app, AI, or a home assistant, we just find ourselves not using Google as much as we were. I can only imagine that would affect ad revenue, and from the data below, it definitely has.
One thing Gruber pointed out, which initially seemed surprising but makes sense upon reflection, is that Amazon has benefited the most from Google’s decline in ad revenue.
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Estimated Share of U.S. Search Advertising Revenue (2018-2025)
The following table illustrates the estimated share of U.S. search advertising revenue by major companies, based on data from eMarketer:
Year | Amazon | Microsoft | Others | |
---|---|---|---|---|
2018 | 61.0% | 13.0% | 5.3% | 20.7% |
2019 | 58.5% | 14.5% | 5.5% | 21.5% |
2020 | 56.8% | 19.0% | 5.3% | 18.9% |
2021 | 54.9% | 19.8% | 5.4% | 19.9% |
2022 | 52.0% | 21.5% | 5.8% | 20.7% |
2023 | 49.0% | 23.0% | 6.0% | 22.0% |
2024 | 46.0% | 24.5% | 6.5% | 23.0% |
2025 | 43.0% | 26.0% | 7.0% | 24.0% |
Key Takeaways
- Google: Steadily declining from 61.0% in 2018 to a projected 43.0% in 2025.
- Amazon: Significant growth, increasing from 13.0% to 26.0% during the same period.
- Microsoft: Modest growth from 5.3% to 7.0%.
- Others: Gradual growth from 20.7% to 24.0%.
Notes
- The percentages represent each company’s share of total U.S. search advertising revenue for the given year.
- Data for 2024 and 2025 are projections.
- Source: eMarketer
This data highlights the challenges faced by Google as it experiences a steady decline in market share while Amazon continues to grow its presence in the U.S. search advertising market.
References
Prior Article on DOJ forcing sell of Chrome