Google Links Bear Market-Induced Crypto Ad Decline to Missed Earnings
Ad-related revenue for the business fell to its lowest level in over a decade.
Due in part to lower spending on cryptocurrency advertising as a consequence of the protracted bear market, Alphabet, the parent company of Google, saw income fall.
Another contraction in the digital asset industry brought on by the year-long bear market is a decrease in crypto advertising.
The Crypto Winter Affected Google’s Missed Profits:
The third-quarter 2022 financial figures were released on Tuesday (October 25, 2022), and they revealed that although YouTube advertisements decreased from $7.20 billion to $7.07 billion, Google’s advertising income increased to $54.4 billion from $53.1 billion. Revenue ad growth slowed to 6% from 41% in 2021, which was the lowest level since 2013.
A decrease in cryptocurrency ad expenditure, according to Philip Schindler, Google’s chief business officer, contributed to the company’s Q3 2022 result.
“In the third quarter, we did see a pullback in spend by some advertisers in certain areas in search. For example in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories.”
Google’s admission that a slowdown in cryptocurrency advertising led to a revenue deficit, on the other hand, may be evidence of the industry’s rising notoriety. This is taking into account the fact that Google formerly prohibited advertisements connected to cryptocurrencies in 2018. The prohibition was withdrawn by the dominant search engine in June 2021 after it became effective in August of that same year.
The most recent development happened not long after Google and the leading cryptocurrency exchange Coinbase agreed to accept cryptocurrency payments for cloud services.
More Scrutiny Of Cryptocurrency Advertising:
In addition to a drop in crypto advertising due to the bear market, regulator pressure has also affected the crypto advertising business. Regulators have been warned off of engaging in crypto promotional efforts anywhere from the UK to Singapore.
These controls are so extensive that they have even had an impact on businesses wishing to show their trademarks at athletic events like Formula 1. Companies have recently been unable to show their marketing graphics on the racetrack in Singapore and France.
In countries like the United States and India, crypto influencers have also been the subject of attention. Authorities in India are investigating cryptocurrency advertisements posted by local social media stars. According to a survey from the summer, influencers were responsible for more than 90% of the deceptive cryptocurrency advertisements that were posted online in India.
