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Crypto winter is hurting Google’s ad empire

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With the crash of cryptocurrency prices and the arrival of a new so-called “crypto winter,” many companies in the industry are facing a liquidity crisis.

Artur Widak | Nafoto | Getty Images

Dull Google Not affected by Crypt Winter.

in the alphabet Third Quarter Financial Results Announcement On Tuesday, Google Chief Business Officer Philipp Schindler blamed lower advertising spending by cryptocurrency companies and other financial firms in part on slowing revenue growth.

“In the third quarter, we saw some advertisers spending less in certain areas of search,” said Schindler. “In financial services, for example, we saw setbacks in subcategories of insurance, loans, mortgages and cryptocurrencies.”

Google’s overall advertising growth in Q4 was 6%, the slowest since 2013 except for one quarter when the pandemic started. YouTube Ad Revenue Drops from a year ago. CEO Sundar Pichai said a “challenging macro environment” was impacting Google’s advertising business.

Schindler mentioned the cryptocurrency pullback twice, but didn’t provide any additional color or details. The cryptocurrency industry has taken a hit in 2022 as investors flee risky assets and sell digital coins and related stocks they have bid on over the past few years.

Bitcoin When ethereum Both have lost nearly 60% of their value this year.crypto exchange coin basewill go public in 2021 and is down more than 70%. Meanwhile, the industry has been plagued with bankruptcies as hedge funds and lenders have dried up liquidity and, in some cases, have been forced to default. Celsius Network, Voyager Digital, and Three Arrows Capital are some of the well-known companies that have been forcibly introduced. bankruptcy.

Elsewhere, businesses are shrinking. Blockchain.com Coinbase laid off 25% of its staff in July. 18% cut Crytpo.com has made two headcount reductions this year.

For Google, there is hope that the cryptocurrency sale will only be a short-term temporary one as the company sees clear opportunities for future growth. rely on coinbase Additionally, Coinbase will move its data-related applications from Amazon Web Services, on which the company has relied for years, to Google’s cloud infrastructure.

— CNBC’s Jennifer Elias and Jordan Novet contributed to this report.

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