Google Ad Revenue Dips As Crypto Firms Cut Spending

Has Google revenue been continuously dropping since most crypto firms decided to cut their spending on Google Ad?

According to a statement made by Alphabet, the decline in the amount of money spent on advertising by cryptocurrency companies has negatively impacted Google Ad revenue growth during the third quarter of 2022.

Since the beginning of 2022, the general market attitude has been trending downward, which has led to a decrease in marketing expenditure. This has been attributed to the current crypto winter. During this moment of market instability, a great number of businesses have failed, including Celsius Network, and other cryptocurrency companies have become reluctant to make new investments.

Philipp Schindler, a chief business officer at Google, stated that he has noticed a trend of other financial companies becoming reluctant to invest money in Google Ad.

According to Schindler, “during the third quarter, we did notice a decline in spend by some advertisers in particular sectors in search.” “For instance, within the realm of financial services, we observed a decrease in activity within the insurance, loan, mortgage, and cryptocurrency subcategories.”

On the results call for Alphabet’s third quarter, the company said that Google’s revenue growth slowed to 6% from 41% in the previous year. This outcome was the worst for any time since 2013, with the exception of the first quarter that the epidemic was in full swing.

According to Google’s CEO Sundar Pichai, the company’s advertising revenue has been impacted by the “difficult macro climate.”

Advertisement

However, Schindler did not elaborate on how Google’s revenue has been impacted as a result of ad pullbacks from cryptocurrency companies.

But the plausible explanation is that investors are staying away in large numbers from the cryptocurrency industry. As the cryptocurrency business continues to struggle, many investors are avoiding risky assets and liquidating their holdings of digital coins and stocks tied to the sector.

In the year 2022, the value of widely used digital currencies such as Bitcoin and Ethereum fell by almost 60 percent. However, the popular cryptocurrency exchange Coinbase has seen a decline of 70%.

Google, on the other hand, is of the opinion that the current crypto winter is really a temporary setback and that there will be new prospects for growth in the not-too-distant future.

Coinbase and Google formed a partnership at the beginning of October to enable some of Google’s customers to make payments for cloud services using cryptocurrencies.

The objective of the strategic alliance is also to provide for the requirements of the expanding Web3 ecosystem. For example, developers will have the opportunity to operate Web3 networks rapidly and reliably, which will eliminate the need for sophisticated and costly infrastructure.

In addition, as a result of this agreement, Google Cloud will take on the role of Coinbase’s strategic cloud provider, which will result in improved exchange and data services. According to the report, “Coinbase will use Google Cloud’s powerful compute platform to process blockchain data at scale and enhance the global reach of its crypto services by leveraging Google’s premium fiber-optic network.” Coinbase will also use Google’s network to enhance the global reach of its crypto services.

In addition, Coinbase customers will be able to access the data and analytics capabilities offered by Google Cloud to gain machine learning-driven cryptocurrency insights.

Advertisement

After putting together a group earlier this year to work on developing services for developers, Google was the first company to get things moving in the Web3 space.

For More Blockchain News, Click Here.