In the latest earning report for Q3 2022, Alphabet has revealed that its Google advertising revenue fell in the quarter. The report from Google’s parent company indicated that search advertising spending from financial services and crypto subcategories saw a considerable decrease during the time period.
Overall, Alphabet noticed a 6% increase in its quarterly revenue as compared to the same quarter last year. However, the revenues decreased in comparison to the second quarter of 2022. According to the report, the advertising earnings of Google saw a rise to $61.3 billion over the past year. But the company noticed a decrease in the financial and crypto subcategories.
Google Experiences Crypto Advertising Pullback
In the earnings call on October 25, the Chief Business Officer of Google, Philipp Schindler said that there was a considerable drop in crypto advertising spending during the quarter. He further mentioned that a decrease in interest was noticed in insurance, loan, mortgage, and crypto subcategories. Thus, it is perceived to be a significant development in the crypto space.
Many experts link it to the troubling times experienced by the overall market. Many crypto firms and organizations have gone bankrupt in the bearish market. On the other hand, many organizations had to cut back on their expenses to deal with the losses. Thus, a decrease in crypto ad spending might also be a way to cut expenses.
Furthermore, Google also updated its financial products and services policy in July 2022. These rules were specified for advertisers across Europe, MENA, and Asia. Therefore, advertisers had to meet particular regulatory requirements to promote their crypto products and services through Google’s advertising platform.
Despite decreasing revenues from the crypto space, Google is still looking to explore more opportunities in this industry. The tech giant recently partnered with the leading American crypto exchange, Coinbase. Through this partnership, Google aims to allow payments for cloud services through Bitcoin and Ethereum in 2023.
Moreover, Google is also expecting to see a rise in revenue once the market settles down. As of now, global markets are undergoing one of the worst bearish spells in history. Previously, Google disabled crypto ads in 2018. But the platform gave them a green light in 2021. With increased scrutiny and updated policies, Google will look to expand the scope of crypto ads to the globally increasing crypto community.