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New estimates show that search ad spending in the US will decrease in the first half of 2020, primarily due to the coronavirus pandemic. This decrease of 8.7% to 14.8% is about $6 billion to $8 billion less than was spent on search ads in the first half of 2019.
A prior estimate in March 2020, before the shutdowns brought about by the coronavirus pandemic had gone into effect, projected an increase in search ad spending of 14.4% for the entire year of 2020. However, updated figures show that Q1 spending this year was flat, although that is probably boosted by a good performance early in the year. Search ad spending is expected to decrease by 20.2% to 29.4% in Q2 (year over year basis).
These declines are to be expected since search is geared toward driving conversions, but with the pandemic shutdowns and restrictions, those conversions can’t happen.
