Google’s parent company, Alphabet, saw a decline in revenue-part due to reduced spending in cryptocurrency advertising as a result of the ongoing bear market.
A damp in crypto ads is yet another contraction in the digital asset space induced by the year-long bear market.
Crypto Bear Market Contributed to Google’s Missed Earnings
The third-quarter 2022 financial results published on Tuesday (October 25, 2022) revealed that while Google’s advertising revenue was $54.4 billion, compared to $53.1 billion in 2021, YouTube ads fell to $7.07 billion from $7.20 billion the previous year.
According to CNBC, revenue ad growth fell to 6%, compared to 41% recorded in 2021, the lowest ever since 2013.
Philip Schindler, Google’s chief business officer, disclosed that a decline in crypto ad spending was closely responsible for the company’s Q3 2022 performance.
“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.”
On second thought, Google’s current statement is a confirmation of crypto prominence in the industry.
Considering the fact that Google once banned cryptocurrency-related adverts in 2018, and in June 2021, the search engine giant lifted the ban, which took effect in August of the same year.
The latest development comes shortly after Google partnered with major crypto exchange Coinbase to accept crypto payment for cloud services.
Meanwhile, apart from the bearish market, increased crypto scrutunity has also affected the crypto promotion rate in countries.
For instance, from the UK to Singapore, regulators are kicking hard against crypto promotional activities.