Over the last few years, Amazon (NASDAQ: AMZN) has consistently taken a growing share of online product searches from general internet search engines like Google. Searches for products like "raincoat" or "chromebook" are immensely valuable to search engines, as they suggest more intent to buy than searches for information. That means the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) company can charge more for ads on those searches than others.
Over the past year, Google has taken back a good chunk of product searches. Combined with other general search engines, Google took 36% of product searches on the web, up from 28% last year, according to a survey from Survata. Amazon, meanwhile, saw its share fall back below 50% to 49%, down 6 percentage points.
Woman holding mug with an open laptop in her lap. (image source: getty images)How Google is taking back share
Survata attributes Google's resurgence in product searches to an improved mobile experienced combined with a continued increase in mobile commerce. Shopping and paying for things on mobile is easier than ever with mobile wallets containing both payment and shipping information. Mobile will account for more than half of all online shopping this holiday season, according to an estimate from Adobe.
Google is certainly winning in the near term, as it's the default search engine on pretty much every mobile browser. The Google app is also one of the most popular apps installed on smartphones, which means a new search is always just a tap away. Indeed, the Survata survey indicates Google was preferred over Amazon in cases where shoppers were looking for inspiration, not seeking a specific item.
That said, Amazon also has a dominant mobile presence, especially among millennials. Millennials go so far as to say Amazon is their must-have app, over social media apps like Facebook, YouTube, Instagram, and Snapchat. As millennials' buying power grows, Amazon's hold over them is only going to strengthen its position in search, and Google might reach a plateau on the share of product searches it can win back.
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