Search engines remain the most influential driver of retail discovery, driving £31.4bn in annual UK retail spend (non-food), more than any other digital or physical channel. Of the $237.9bnn Google generated in ad revenue in 2023, $175.0bn, or 73.6%, came from Google Search.
However, many retailers and brands underestimate search’s continued influence amid the growing dominance of social commerce and marketplaces – risking £6.7bn in untapped revenue at a time when consumer attention is increasingly fragmented.
A new report from Retail Economics and Upp.ai – From Search to Sale: How AI Drives Consumer Discovery and Retail Spend – finds that search engines remain vital in today’s fragmented attention economy and highlights how artificial intelligence (AI) is transforming their role, enabling retailers to better engage consumers, optimise ad spend, and drive growth.
The resilience of search in a fragmented landscape
In today’s retail landscape, where consumer attention is increasingly fragmented, search engines remain a dominant force:
Discovery leader: Search engines drive £31.4 billion in retail spend annually, surpassing online marketplaces (£30.9 billion) and retailer websites (£27.6 billion). They are the most effective channel for product discovery, influencing 24% of digital retail spend and outperforming other digital and physical touchpoints.

Simplifying complexity: In an increasingly fragmented retail ecosystem, search engines act as gateways, guiding consumers through a sea of options to make informed decisions. On average, consumers consult three sources during their research, with 72% of consumers citing search engines as their first port of call when conducting in-depth research on new products or services.
Trusted by consumers: Search engines rank as the most trusted channel for discovery. With a net 65% of consumers expressing trust in search engines, they surpass even retailers’ own websites as reliable sources for pre-purchase decisions.
Discussing the findings, Steve Warrington, SVP of Client and Industry Engagement at Upp.ai, says: “This research highlights that while consumer attention is fragmented across channels, search remains the most powerful driver of high-intent discovery, influencing £31.4 billion in retail spend annually. AI now represents the next stage in the development of search marketing. It operates within ad platforms managing campaigns, refining targeting and optimisation and dynamically responding to consumer intent in real-time. This level of automation and adaptability simply wasn’t available before.
“By harnessing AI-driven search strategies with adaptive AI, retailers can ensure they are not just capturing demand but actively shaping it to align with their business objectives, therefore driving both immediate revenue impact and long-term customer value.”
Retailers face a £6.7bn perception gap
While consumers heavily rely on search engines, the report reveals that retailers often undervalue their role. Retailers rank search engines fourth behind websites, marketplaces and social media, despite driving more spend and being the most trusted channel.

Search has the biggest influence on retail’s biggest spenders
Search engines are particularly influential among high-spending demographics, notably consumers aged 45 to 54. Often referred to as ‘digital adopters,’ this group is at the peak of its spending power, with an average annual spend of £6,500 on non-food retail—the highest of any age cohort. Search engines influence a minimum of 16% of their purchases (not including the Research Online Purchase Offline (ROPO) factor), highlighting their pivotal role in this demographic’s shopping journey.
Despite their significant spending power, these middle-aged shoppers are often overlooked in retailers’ search strategies or digital investments, which tend to focus on younger, digitally native audiences. Yet with higher disposable incomes and more complex purchasing needs, they rely heavily on search engines for research and validation. This makes search an indispensable channel for engaging and converting high-value customers.

AI’s role in shaping the future of search
The report highlights the transformative role of AI in enhancing search’s precision and relevance. By integrating AI, retailers can:
- Tailor results to individual needs: AI delivers personalised search results based on preferences, past behaviours, and values, boosting relevance and engagement.
- Predict consumer intent: AI anticipates what consumers need next, providing proactive suggestions at critical moments in the journey.
- Refine campaigns dynamically: Combining real-time consumer insights with product data, AI allows for smarter ad spend and better alignment with shopper intent.
Richard Lim, CEO at Retail Economics, adds: “In today’s increasingly complex and fragmented digital landscape, search remains the foundation of how consumers navigate the path to purchase. While new digital channels continue to emerge, search remains a trusted and intent-driven gateway that connects consumers with the products and brands that meet their needs.
“The rise of Adaptive AI represents a transformative shift, enabling search to evolve beyond passive discovery into a more intuitive, personalised, and predictive experience. For retailers, this marks a critical opportunity to rethink how they engage customers, ensuring they remain visible, relevant, and competitive in an increasingly dynamic marketplace.”
The full report is available to download here: From Search to Sale: How AI drives Consumer Discovery and Retail Spend