Marketing professionals brace for economic constraints, jeopardizing online search performance
In the dynamic world of digital marketing, a significant shift is underway in the realm of search advertising. Despite a robust overall investment, with search ad spend in the U.S. reaching approximately $123.6 billion in 2025 and mobile search ads accounting for $86 billion, there is a noticeable decline or slowdown in certain areas of traditional search advertising [1][2].
This trend is partly attributed to the rise of AI chatbots and tools, such as ChatGPT and Perplexity, which are altering consumer behaviour and interaction with information. By answering user queries directly, these AI chatbots are contributing to "zero-click searches," reducing the traffic generated by traditional search ads [4].
In response, marketers are adapting their strategies. One approach is to optimize for rich snippets and voice search to capture attention in AI-driven search experiences [4]. Another strategy is to leverage AI-driven ad optimization to improve targeting cost-effectively [4].
Moreover, marketers are diversifying their digital marketing budgets towards other channels like video advertising, which is rapidly growing. Digital video ad spend increased 18% year-over-year in 2024 and is projected to reach $72 billion in 2025, driven by AI-powered precision targeting and performance metrics [5].
The report by Mediaocean, which includes 10 media channels, indicates that in seven of these channels, the number of respondents planning to spend less has increased [1]. However, it's important to note that the declining interest in search advertising observed by Mediaocean was not orders of magnitude greater than that of other channels.
The decline in search advertising spend is also linked to consumers' growing use of AI chatbots for discovery and research. Karsten Weide, chief analyst at W Media Research, attributes this trend to the changing landscape [6].
Meanwhile, Google's market share dipped below 90% at the end of 2024 for the first time in 15 years, as Microsoft Bing's share slightly increased [1]. This decrease in searches on Apple devices is also attributed to the use of AI tools like ChatGPT and Perplexity [7].
In contrast, CTV emerged as the top-performing channel among marketers, with 58% of respondents planning to spend more on it [1]. Furthermore, a survey indicates strong uptake and satisfaction with Google's AI Mode function, with 60% of 'knowledgeable' respondents rating its answers more highly than those of ChatGPT [8].
Performance-driven paid media was voted the most critical advertising capability and media investment for the next six months by the respondents [9]. Interestingly, the share of marketers maintaining their current spend on search advertising has increased from 42% to 50% [9]. However, the share of marketers planning to increase spend on search advertising in the second half of 2025 has decreased by 22% compared to H1, according to Mediaocean's H2 Market report [9]. This likely indicates a lack of confidence in the economy, rather than a dramatic flight from search.
In conclusion, while search advertising spending remains large and growing overall, especially on mobile and retail media search platforms, the emergence of AI chatbots and zero-click search trends is causing marketers to rethink their strategies and diversify spend towards AI-optimized ads, rich snippets, voice search, and video advertising to maintain engagement and return on investment [1][2][3][4][5].
References: [1] Mediaocean H2 2025 Market Report [2] IAB's 2025 Internet Advertising Revenue Report [3] Emarketer's 2026 Retail Media Ad Spend Projections [4] Google's Zero-Click Search Trends and Implications for Marketers [5] eMarketer's 2025 Digital Video Ad Spend Projections [6] W Media Research's Analysis on Declining Search Advertising Spend [7] Apple's Testimony on Google Searches on Apple Devices [8] Survey on Satisfaction with Google's AI Mode vs. ChatGPT [9] Performance-Driven Paid Media: The Top Advertising Capability for 2025
- In response to the increasing use of AI chatbots in consumer behavior and the rise of zero-click searches, marketers are adapting their strategies by optimizing for rich snippets, voice search, and AI-driven ad optimization to capture attention in AI-driven search experiences, and diversifying their budgets towards other channels like video advertising.
- The changing landscape, with AI chatbots and tools like ChatGPT and Perplexity altering consumer behavior, has led to a noticeable decline or slowdown in certain areas of traditional search advertising, causing marketers to lean towards AI-optimized ads and video advertising to maintain engagement and return on investment.
- As the market share of Google in search advertising dips below 90%, and the growing use of AI chatbots for discovery and research, it is crucial for advertisers in the media industry to recognize these trends and adapt their marketing strategies, considering the potential impact on search advertising spend, particularly in mobile and retail media search platforms.
