AI search advertising is on the rise! The US market size will exceed $26 billion in 2029
TechNews Technology News
June 5, 2025
Author Lin Yurou
June 5, 2025
Author Lin Yurou
According to data released by Emarketer on Wednesday (4th), driven by the rapid popularization of technology and more accurate user positioning, the US's AI-driven search advertising spending is expected to grow significantly from just over $1 billion this year to nearly $26 billion by 2029.
Research institutions pointed out that companies that rely on traditional keyword search advertising may face a decline in revenue due to the increasing popularity of AI search advertising, because AI search advertising can bring greater convenience and interactive experience to users.
Currently, search engine giants such as Alphabet's Google and Microsoft's Bing have added AI functions to more effectively compete with chatbots such as OpenAI's ChatGPT and Perplexity AI. These tools can directly provide users with information without clicking through multiple search results pages. At the same time, Apple is also exploring the integration of AI search functions into the Safari browser, which may end its long-term partnership with Google.
The report comes amid concerns about the growing trend of conversational searches through chatbots, and the potential for AI-driven search results to upend some companies’ business models.
Online education company Chegg said in May it was laying off about 248 employees to cut costs and streamline operations as students increasingly use AI tools like ChatGPT instead of traditional edtech platforms. Emarketer analyst Minda Smiley said publishers and other sites are feeling the pain of AI search. As traffic wanes, publishers are turning to subscriptions and paid AI licensing deals to boost revenue.
Emarketer expects AI search ad spending in the U.S. to account for about 1% of the total search ad market this year, and to rise to 13.6% by 2029. The report noted that sectors such as financial services, technology, telecommunications and healthcare are actively adopting AI technology as they have clearly seen the benefits of AI in helping to optimize advertising strategies, while retail has been relatively slow to adopt it.
Google also recently announced that it will expand its AI search capabilities to consumer packaged goods by enhancing Google Shopping.
Related links: https://technews.tw/2025/06/05/ai-driven-search-raised/
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