The prospect of no commission fees will likely entice brands to consider selling products directly on Google — as opposed to Amazon and Shopfiy, which are more costly — and more products sold via Google will give the platform's search revenues a boost.
Google's move comes as Amazon gains share in the search advertising market. Amazon's key advantage over Google is the ability to sell search inventory closer to where consumers are making purchases, and over the past few years, Google has been slowly losing share to Amazon: We Amazon's share of US search ad revenues to grow from 12.9% to 14.3% in 2020, while Google's will fall from 73.1% to 71.1%.
of total retail ecommerce sales. It would likely take a significant amount of time for Google to convince brands to shift their ecommerce-oriented search budgets away from Amazon.Join other Insider Intelligence clients who receive this Briefing, along with other Media, Advertising, & Marketing forecasts, briefings, charts, and research reports to their inboxes each day. >>
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