How Bing Plans to Compete with Google in Search Advertising with AI

Microsoft’s main product for a number of decades has been its operating system, Windows, but in spite of the fact that this is the case, CEO Satya Nadella has managed to diversify considerably. LinkedIn gave the tech juggernaut an entry point into the social media industry, and Microsoft has also managed to make a lot of strides in the world AI with all things having been considered and taken into account.

In spite of the fact that this is the case, one area where Microsoft has always lagged behind in is in the search engine game. Bing has been a laughing stock since it was first released, but the addition of ChatGPT to the search engine has managed to bring it some positive attention. While the rollout of Bing Chat did not go all that smoothly, the disastrous release of Bard by Google has made it seem better than might have been the case otherwise.

With all of that having been said and now out of the way, it is important to note that Microsoft is attempting to capitalize on this success. A top Microsoft exec stated that ads will be coming to Bing Chat because of the fact that this is the sort of thing that could potentially end up monetizing it and bringing in fresh revenues.

The US is still the biggest market for search engine advertising by far, and the industry has also grown by a massive 11.2% year over year. China is the second biggest industry, even though its size of $53 billion pales in comparison to the over $117 billion search engine ad industry that can be seen in the US.

China’s own growth rate has been at around 8.7%. Other countries like the UK have seen 10.5% growth, with Japan and Germany seeing double digit growth rates of 10.5% and 10.3% respectively as well. However, the US will be Microsoft’s primary target moving forward, since gaining a larger portion of search engine ad revenues from the global superpower will help Microsoft cement its place as a true contender in the world of search engines.

This chart provides an estimation of the advertising expenditure in the major search advertising markets categorized by channel.

H/T: Statista

Read next: SEOs Say Bing Chat is Better Than Google Bard
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