YouTube's Ad Revenue Falls By 2% In Q3: Report
The digital ad business, which generates Google's parent company Alphabet's revenue, is experiencing difficulties, according to a report released on Tuesday. As a result, the company's quarterly results fell short of market forecasts.
According to Alphabet, its third-quarter advertising revenue was USD 54.48 billion, up from USD 53.13 billion the previous year. This indicates that from 41per cent a year ago to 6 per cent now, the world's largest media company's total "revenue growth" has substantially decreased.
In the third quarter, Google-owned YouTube's ad revenue has fallen 2 per cent year over year to USD 7.07 billion. Since Alphabet began disclosing the division's numbers in 2019, it was the first time YouTube's ad income decreased year over year.
During a conference call with analysts, the company's Chief Financial Officer Ruth Porat has stated that YouTube's revenue decline "primarily reflects further pullbacks in advertiser spends."
According to Philipp Schindler, chief business officer at Alphabet, certain advertisers who used Alphabet for online advertising slowed down their spending in the financial services, insurance, loans and mortgage, and cryptocurrency sectors.
Globally, the online advertising industry has been corrupted. Recently, Snap, a competitor of Google, has also announced a drop in growth.
In response to rising interest rates and inflation, businesses cut back on spending. Due to this, spending on the digital advertising industry has slowed over the last few quarters.
