Google and parent company Alphabet have recently been facing slowed ad revenue growth thanks, in part, to a crypto bear market that’s being called “crypto winter.” During the company’s Q3 2022 earnings call, Google’s Chief Business Officer, Philipp Schindler, remarked on how the company has seen a reduction in ad spending in certain areas including financial services and “crypto subcategories.”
“In the third quarter, we did see a pullback in spend by some advertisers in certain areas in search,” explained Schindler. “For example in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories.”
As noted by Google during its earnings call and by outlets like CNBC, the company has seen its ad revenue growth dip 6 percent, marking the weakest period for ad growth since 2013, with YouTube ad revenue also shrinking from the previous year. Aside from a noticeable reduction in spending from crypto companies, CEO Sundar Pichai has also pointed to the “challenging macro climate” as being among the things impacting Google’s ad revenue growth.
With this, it’ll be interesting to see moving forward how Google and Alphabet will tackle its ad revenue growth difficulties, and whether the crypto market and “crypto winter” will further impact ad revenue growth. Speaking of crypto winter, CNBC points out that Bitcoin and Ethereum have both lost nearly 60 percent of their value this year alone, with crypto exchange company Coinbase down by over 70 percent as well and having recently cut 18 percent of its workforce.
A few weeks ago, Google had also announced that it’s partnering with Coinbase to begin accepting crypto payments for its cloud services in 2023. After reading up on the recent Coinbase partnership, we recommend reading read through some of our other Google news as well, including Google’s (GOOGL) Q3 2022 earnings results missing EPS and revenue expectations, and Google (GOOGL) generating $54.48 billion in advertising revenue during Q3 2022.
Morgan Shaver posted a new article, Google says crypto bear market is partially to blame for ad revenue woes