One reason why Google says its ad revenue growth has slowed is because of a crypto crash called “crypto winter.”
Google and its parent company, Alphabet, have seen their ad revenue growth slow down recently, in part because of a crypto bear market called “crypto winter.” Philipp Schindler, Google’s Chief Business Officer, said during the company’s Q3 2022 earnings call that the company has seen a drop in ad spending in certain areas, such as financial services and “crypto subcategories.”
“We did see some advertisers cut back on spending in certain areas of search in the third quarter,” Schindler said. “For example, we saw a drop in the insurance, loan, mortgage, and crypto subcategories of financial services.”
Google’s ad revenue growth has slowed by 6 percent, according to Google’s earnings call and news outlets like CNBC. This is the slowest growth for ads since 2013, and YouTube’s ad revenue is also down from the year before. CEO Sundar Pichai has said that the “challenging macro climate” is also hurting Google’s ad revenue growth. This is in addition to the fact that crypto companies are spending less than they used to.
Now that we know this, it will be interesting to see how Google and Alphabet will deal with their problems with ad revenue growth in the future, and if the cryptocurrency market and “crypto winter” will have any more effects on ad revenue growth. When talking about “crypto winter,” CNBC says that both Bitcoin and Ethereum have lost nearly 60 percent of their value this year alone. The value of cryptocurrency exchange Coinbase has also dropped by more than 70 percent, and the company just cut 18 percent of its staff.
A few weeks ago, Google also said that it would be working with Coinbase to start accepting cryptocurrency payments for its cloud services in 2023. After reading about the recent partnership between Google and Coinbase, you might want to check out some of our other Google news, such as how Google’s (GOOGL) Q3 2022 earnings results missed EPS and revenue expectations and how Google (GOOGL) made $54.48 billion in advertising revenue during Q3 2022.
