Alphabet’s revenue from ads on Google platforms fell in the third quarter of 2022, with the sharpest decline being in the financial services and crypto assets segment.
The information is from a report released by Google’s parent company, which also showed a drop in YouTube ads, which fell from US$ 7.20 billion in the third quarter of 2021 to US$ 7.07 billion this year over the same period. Overall, ad revenue was up 6% – but last year, the growth had been 41%.
Philip Schindler, Google’s chief business officer, attributed the company’s worse performance to the bear market period in the crypto market. “We saw a reduction in spending by some advertisers in certain areas of search, such as financial services and its subcategories (insurance, loans, mortgages and cryptocurrencies)”, he said.
In addition to the bear market, regulators in several countries also restrict advertising
In addition to the bear market, which has reduced the advertising investments of companies in the sector, in some countries, the rules for crypto assets regulation restrict promotional activities.
For example, in recent Formula 1 races in France and Singapore, companies in the industry were not allowed to display their brands. In India, even advertisements by influencers are in the regulators’ sights.
It’s worth noting that Google updated its financial products and services policy in July of this year to clarify the scope and requirements for ads related to crypto assets-related businesses, services, and products. The rules were set for advertisers of exchanges and wallet services that serve some countries, including France, Germany, South Korea, the Philippines, the United Arab Emirates, Hong Kong, and Thailand.
But despite falling ad revenue and limitations by regulators, Google announced a partnership with U.S. crypto assets exchange Coinbase in October this year to allow cloud service payments with crypto. Read on to learn more.