Home » ominous sign for online ad market

ominous sign for online ad market

by admin

The YouTube logo as seen at YouTube Space LA in Playa Del Rey, Los Angeles, California, United States on October 21, 2015.

Lucy Nicholson | Reuters

The online advertising market continues to struggle. alphabet When microsoft It reported Wednesday that sales in the most recent quarter were disappointing.

YouTube ad revenue fell 2% year-over-year to $7.07 billion in the third quarter for Alphabet, below analyst estimates of $7.42 billion. It’s the first time YouTube’s ad revenue has declined year-over-year since the company began reporting divisional results in his 2019 earnings report.

Significant growth in Alphabet’s overall revenue declined It has increased from 41% a year ago to 6% in the most recent quarter. Advertising and marketing campaignsIn fact, Alphabet’s chief financial officer, Ruth Porat, said in a conference call with analysts that YouTube’s decline in revenue “primarily reflects further declines in advertiser spending.” says.

Some of the advertisers who have curbed online ad spend at Alphabet come from the financial services, insurance, loans and mortgages and cryptocurrency industries, said Philip Schindler, Alphabet’s chief business officer.

Last week, Snap set the tone for the online advertising market, falling short of analyst expectations for the third quarter, hitting $1.13 billion in revenue and selling its stock. tumbling More than 30% the next day.Snap blamed the company for poor sales We are reducing our marketing budget in response to the economic downturn,” the company said. letter to investors.

Microsoft too report Slowdown in online advertising business on Wednesday.

Its search and news advertising business, which includes Bing and Microsoft News, reported 16% revenue growth in the September quarter (first quarter of fiscal 2023). In fact, the growth rate of this business has contracted quarter by quarter over the past year, consistent with the general downward trajectory of the online advertising market as a whole.

Additionally, LinkedIn’s revenue growth contracted to 17% in Microsoft’s fiscal first quarter, down from 42% in the same quarter in 2021.

Microsoft CFO Amy Hood told analysts on an earnings call:

in the meantime, meta is expected to see its second straight quarter of decline in sales on Wednesday, highlighting the current turmoil in online advertising. Judging by recent earnings reports from various tech giants, Meta is unlikely to report any indication that the online advertising market is poised for recovery.

Related Posts

Leave a Comment