Analyst Projects $17 billion in ad revenue by 2027 and 58 billion queries from the AI overview by 2024.
The most well-known and extensively utilized search engine platform worldwide is Google. With 40,000 search queries every second and 3.5 billion daily searches, Google appears to be an information encyclopedia covering a wide range of subjects.
The AI overview feature was added to the search engine to further improve its functionality by providing instantaneous answers to users' questions based on data acquired from the top results. For instance, when you search for "how to lose weight," Google will provide you with a brief, detailed response at the top of the results on broad advice on how you,
To make the search engine even more effective with its functioning, the AI overview feature was introduced to answer people’s queries immediately based on the information gathered from the top results. For example, if you do a search on how to lose weight, then Google will give you a quick, specific answer on the general guidelines at the top of search results on how you can effectively lose weight. The answers that AI overview produces are mostly 3 to 6 lines long.
To give a clearer picture of AI Overview in terms of revenue generation, a researcher based in Wall Street, Dan Salmon, explains that, AI Overview advertising is expected to generate $17 billion for Google by 2027.
As per Salmon’s estimation, AI Overview is predicted to make $1.7 billion in the year 2025, which is less than 1% of what Google makes through its total Ad revenue. Nonetheless, in 2026 it is projected to touch $6.7 billion (2.8% of Google’s total advertising revenue). What's more interesting is that as AI progresses and years pass, it makes more money. For example, for the year 2027, AI Overview Ads will make $16.9 billion (6.5% of Google's total ad income).
Salmon’s estimation further predicts that AI Overview will produce 58 billion search queries in 2024 based on the Google engineering team's acknowledgment that their users have used the tool billions of times to seek answers.
Predicting AI ad spending is tough with changing business models. Yet, Salmon estimates that next year, Meta will earn $6.7 billion and Snap $686 million just from ads on their AI chatbots.
0 comments:
Post a Comment