Meta Poised to Overtake Google Search Ad Revenue by 2026

Analysts at Bernstein believe Meta Platforms (META) is on track to surpass Alphabet's Google Search advertising revenue by the end of 2026, driven by artificial intelligence. The firm estimates that Meta may already rival Google in ad revenue on a like-for-like basis. In the second quarter, Meta captured nearly half of every incremental digital advertising dollar.

AI is improving almost every part of the advertising process, from content recommendations and user engagement to ad targeting, delivery, and the path from discovering a product to making a purchase. This acceleration has led to stronger growth in advertising revenue for the largest platforms, including Meta, Google, and Amazon (AMZN).

Despite still seeing strong growth in its core search business, Google's broader advertising revenue is not moving uniformly. Meta may already be roughly comparable with Google Search when looking at advertising revenue on a more like-for-like basis and excluding certain Google businesses.