TikTok rolls out search ads

In a move that takes direct aim at Google’s dominance, TikTok recently introduced its Search Ads Campaign tool, which gives advertisers the ability to target users based on search queries.

They say when you come at the king, you best not miss. Some data points driving TikTok’s decision:

• Past internal Google data indicates ~40% of young people use TikTok and Instagram for search instead of Google – while 14% of Gen Z use TikTok to research a major news event, compared to just 1% of other generations, according to Morning Consult.
• 57% of all users utilize the app’s search functionality, and 23% search for something within 30 seconds of opening TikTok.

Is Google’s dominance fading?

The tech giant’s share of the US search ad market is expected to drop below 50% next year for the first time in over a decade, according to the research firm eMarketer, as competitors increasingly enter the fray.

• Perplexity, a Jeff Bezos-backed AI search startup, plans to introduce ads later this month under its AI-generated answers. And Amazon has been chipping away at Google’s search ad dominance for years (#BezosLovesSearch).

👀 Looking ahead… The long arm of the law could play a major role in the search ad industry’s future. Appeals and punitive actions are still being considered after Google Search was declared an illegal monopoly in August, while an ongoing lawsuit may lead to TikTok being kicked out of the US.