Meta, Google set to launch soon?
SMBs prioritize Google and Meta for ads while exploring AI tools. Morgan Stanley analysis reveals usage trends, ROI shifts, and AI's impact on the advertising landscape.
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When small and medium-sized business (SMB) advertisers are asked, “Bro, where are you planning to spend your ad budget next year?” their answers are surprisingly consistent: “Man, we’ll still put most of it on Google and Meta, but at the same time, we’ll also allocate some to AI products.” So does this mean AI hasn’t impacted search advertising? Or is AI actually expanding the overall market pie? Let’s take a look at Morgan Stanley’s analysis.
Morgan Stanley points out that Google search ads outperform other platforms in both usage and ROI. Specifically, Google search ad usage among advertisers rose 4% year-over-year, while advertiser ROI improved by 13%. AI Overviews—the AI-generated summaries embedded in Google’s search results pages—saw a 9% increase in usage, indicating that SMB advertisers are actively embracing this new AI-driven search format.
Morgan Stanley believes that the strong dual momentum of core search and AI Overviews not only alleviates concerns about AI disrupting the search market but actually further solidifies Google’s dominant position. This provides an interim answer to the market’s long-standing worry: Will AI upend search advertising?
