Google exceeds expectations: Despite competition from AI!
Google exceeds expectations: Despite competition from AI!
USA - Google's parent company Alphabet exceeded the analysts' expectations in the last quarter, despite a pretending to be in the online advertising market. As reported OE24, the advertising proceeds rose by 8.5 percent to almost $ 66.9 billion ($ 58.61 billion). This positive development is also reflected in an increase in the alphabet share in post-market trade by around four percent.
The advertising remains the main source of revenues for alphabet. Nevertheless, the development of the advertising business is observed closely, especially with regard to the increasing competition through artificial intelligence and platforms such as TikTok. This platform has introduced tailor -made advertising, which is based on previous search queries and binds users by algorithmically controlled content.
shifts in the advertising market
The competition pushes Google on the defensive. Forecasts from EMARKETER indicate that Google's market share for online advertisements in 2024 could fall below 50 percent. [Heise] (https://www.heise.de/news/googles-dominanz-im-werbemarkt-wind- through-ki-and-tistok-996382.html) reports that Amazon is expected to win around 22 percent of the advertising revenues. The company has continuously gained market shares since 2020 through its own advertisements.
In addition, companies such as Temu and Shein have hired their advertising on Google and Meta. These changes show how fast -moving the market is and how strongly it is influenced by developments in the field of artificial intelligence.
artificial intelligence in focus
The influence of artificial intelligence on the advertising market is increasingly considered crucial. As reports [Media4MORE] (https://www.media4more.com/kuenstlich-intelligenz-im-werbemarkt-s- or- or- or), Ki enables advertisers to make campaigns more effectively and offer personalized advertising. This technology helps advertisers to analyze the behavior of their target group and to switch precisely advertising.
However, the application of AI is not without risks: data protection and customer satisfaction are the focus of the discussion. The possibility that AI creates discriminatory advertising based on breed or gender must be taken into account. Companies are required to protect their data and ensure that no disproportionate or discriminatory use is carried out.
regulatory challenges
In addition, the regulatory landscape is becoming increasingly complex. In May, the exception of import duties for package shipments under $ 800 will be lifted in the United States, which could have significant effects on the deliveries of Chinese trading platforms. This new customs policy could further influence the competitive environment in the online advertising market.
Overall, it shows that Google faces major challenges despite current successes in the advertising business. The market changes by AI and new competitors require quick action to secure dominance in the advertising market. Experts and companies will follow the developments closely, while the search for a balance between technological progress and ethical standards is still in focus.
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