The Crypto Bear Market Has Affected Google As Crypto Ad Slips In Q3
Google’s parent company (Alphabet) released its revenue report for Q3 on October 25. The report showed a drop in revenue from $69.7 billion in Q2 to $69.1 billion in Q3 of 2022.
However, compared to the reports from quarter three in 2021, there is an increase of 6% in revenue. Yet, revenues were down from Q2 2022.
The decrease in Alphabet’s revenue results from reduced financial services and cryptocurrency subcategory search spending.
Looking at the breakdown of Google’s services revenue, which includes its ad earnings, there is an increase from $58.8 billion in quarter three last year to $61.3 billion in Q3 this year.
Alphabet Revenue Drops Due To Bear Market
Chief Business Officer at Google – Philipp Schindler, pointed out a particular friction in the financial and cryptocurrency sectors, which had significant drops in their ad spending.
The decline has been consistent from one quarter to the other and could not be neglected in the last revenue report. In addition, Phillip said, “we saw some pullback in spending by a bunch of advertisers in specific areas in search advertising. “
He continued, “A good example is financial services, where we saw a pullback in insurance, loan, crypto, and mortgage subcategories.” This event is a result of the decline in the value of crypto assets lately. As a result, many investors are losing interest and the risks involved.
Previously in July 2022, Google updated its financial products and service policy. They clarified the scope and requirements for crypto businesses, services, and product-related advertising.
The new rules are for exchange advertisers and wallet services targeting countries like Germany, South Korea, France, the United Arab Emirates, the Philippines, Hong Kong, and Thailand.
Advertisers in that category could continue advertising their crypto-related business, product, and services only if they met the new regulatory requirements. However, Google banned crypto-related advertising and payments on its platform in June 2018.
But in August 2021, the multinational tech company gave crypto-related advertising the green light. Recently, Google partnered with Coinbase to allow payments for cloud services with Bitcoin.
Nonetheless, the decrease in ad spending from the financial and crypto sectors doesn’t seem to affect Google’s attitude toward the crypto market.
Currently, global financial markets, including cryptocurrency, are facing difficult times. For example, various data show that Bitcoin and Ethereum lost 60% of their value this year.
Moreover, the crypto industry has faced multiple bankruptcies as hedge funds saw their equity dry up. The Celsius Network, Voyager Digital, and Three Arrows Capital are notable names that went into bankruptcy this year.
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