Marketers are scrutinising their Google search budgets, with 10% to 30% of spend under review, Digiday reports. Agencies say clients are open to shifting funds to Meta, Local Services Ads and other platforms if Google search returns weaken. Google’s search ad revenue rose 12% in the third quarter, its slowest pace this year, with executives partly blaming the slowdown on the rise of AI-driven search tabs.
Media mix modelling and geo-testing are showing that upper-funnel media and non-search channels are driving more impact, prompting some buyers to reallocate spend. Branded keyword CPCs rose 5% in the third quarter, and some marketers are finding better returns by investing earlier in the discovery journey, such as paid social or YouTube. AI-led platforms are also reallocating spend automatically when Google performance dips.
Despite these shifts, most budget changes remain within the Google ecosystem, with increased investment in AI-powered products like Performance Max and Demand Gen. The trend points to a more diversified approach, as marketers look to balance paid and organic presence amid evolving search habits and AI’s growing role in media planning.
