GenAI Puts Search Engines on Notice: From Browser to Chatbots

Internet search has evolved with the advent of generative artificial intelligence (GenAI), shifting from browser-based searches to conversational chatbots. Google has maintained its position as the industry leader since its launch in 1998. The market is forecast to grow from $252.5 billion to $440.6 billion by 2030, driven by the shift to AI-native, conversational engines.

The digital marketing landscape has been significantly transformed by the advent of generative artificial intelligence (GenAI). This technology has shifted search engines from traditional browser-based models to conversational chatbots, enhancing user interaction and personalization. According to a recent report [1], the global market for generative AI in digital marketing is projected to grow at a compound annual growth rate (CAGR) of 30.83% from 2019 to 2024, reaching nearly $2.48 billion in 2024.

Google, a longstanding leader in the search engine industry since its launch in 1998, continues to maintain its dominant position. The shift to AI-native, conversational engines has been a key driver of growth, with the market forecast to expand from $252.5 billion to $440.6 billion by 2030 [1]. This growth is fueled by the increasing adoption of digital channels, the rise in e-commerce, and advancements in AI technology.

The generative AI in digital marketing market is characterized by a high degree of fragmentation, with a large number of small players operating alongside major competitors. As of 2023, the top ten competitors made up just 15.2% of the total market share. International Business Machines Corporation (IBM) led the market with a 3.48% share, followed by Google LLC, Microsoft Corporation, and Meta Platforms Inc. [1].

North America remains the largest region in the generative AI in digital marketing market, accounting for 33.66% of the total market in 2024. However, Asia-Pacific and the Middle East are expected to experience the fastest growth rates, with CAGRs of 36.09% and 33.70% respectively [1]. The software segment is the largest component of the market, followed by services, with the services segment expected to grow at a faster rate in the coming years [1].

The content generation market is the largest application segment, accounting for 32.93% of the total market in 2024. This segment is expected to grow at a CAGR of 35.79% during the forecast period [1]. Search engine marketing is the largest channel segment, accounting for 47.88% of the total market in 2024. Mobile marketing is expected to be the fastest-growing channel segment, with a projected CAGR of 38.02% during the same period [1].

The market is poised for significant opportunities, particularly in the software segment, which is expected to gain $4.05 billion of global annual sales by 2029 [1]. The search engine marketing segment is also expected to see substantial growth, with $3.18 billion of global annual sales by 2029 [1]. The content generation segment is projected to gain $2.95 billion of global annual sales by 2029 [1].

Strategies for market players include focusing on developing AI-powered advertising tools, AI-driven video advertising tools, and AI-driven creative tools. Strategic collaborations and dynamic pricing models are also being adopted to enhance digital advertising efficiency and creativity [1]. Major trends in the market include the AI-powered advertising suite revolutionizing automated content creation and the generative AI suite transforming automated content creation for digital marketing [1].

Recent developments include the acquisition of AdCreative.ai by Appier, Canva acquiring Leonardo.ai, and Hootsuite acquiring Talkwalker, which are further driving innovation in the market [1]. These acquisitions and partnerships are aimed at enhancing the capabilities of digital marketing agencies, improving efficiency, and scaling content production.

In conclusion, the generative AI in digital marketing market is experiencing rapid growth, driven by technological advancements and the increasing demand for personalized and automated marketing solutions. The market is highly competitive, with a mix of large established players and numerous smaller companies. The future of this market looks promising, with significant opportunities for growth and innovation.

References:
[1] https://www.globenewswire.com/news-release/2025/06/18/3101667/0/en/Generative-Artificial-Intelligence-AI-in-Digital-Marketing-Market-Opportunities-and-Strategies-Report-2025-2034-Top-10-Players-Control-Just-15-2-with-IBM-Leading-at-3-48-Share.html