Google Summer ad Business falls after Crypto Winter

The internet giant Google is faced with financial problems because advertisers, including crypto companies, are returning their expenses in view of the increasing inflation.

Alphabet published its Result of the third quarter - a quarterly net $ 13.9 billion-a decline of 27 % compared to the previous year, with the analyst estimates of $ 16.9 billion missed. Sales rose by 6 % to $ 69.1 billion and thus remained behind the expectation of $ 71 billion.

The company based in Mountain View, California, seems to be affected by the crypto winter, rising interest rates and the fear of slowed growth, since the global economy is still being bought by pandemic and the war in Russia in Ukraine.

that said Philipp Schindler, Chief Business Officer from Google that the slump was partly caused by crypto companies and other financial companies that shortened the advertising expenditure.

Schindler did not go into more detail which crypto subcategories contributed to slipping, but that of the company Strict crypto advertising guideline should exclude dodgy advertising or the threeth fraud.

Google did not answer the request from Blockworks after a comment until the editorial deadline.

Google's advertising revenues from YouTube decreased by 2 % to $ 7.1 billion, the first time that the division reported a loss. Meanwhile, the income from Google search ads rose by 4.2 % to $ 39.5 billion, but failed to forecast 8 %.

Sundar Pichai, CEO of Alphabet, described the time as a "difficult time at the advertising market", and CFO Ruth Porat blamed "further declines in advertising spending" for the break -in of the year.

The cryptocurrency market has developed downwards this year and was hit by a mixture of fear of recession and the collapse of the Terra ecosystem, whereby 2021 has lost popular assets such as Solana by over 90 % since the beginning of the year. The price volatility forced large industry players such as Coinbase, Blockchain.com and Blockfi to realign the operation and released thousands of employees.

PAY-PER-Click (PPC) marketing is generally not what web3 companies do and not what you have done in the past, according to Adrian Krion, founder and CEO of the blockchain gaming startup play works.

"At the moment, [Lower ad Spending] is also related to the low interest rates and the bear market," he told Blockworks and added that companies in the industry are expected to rely on proven practices such as content and viral marketing Financial product and service policy is made clearer.

Google relies on Coinbase for sales diversification

Despite the declining mood, the crypto winter is generally not considered a terrible thing for the industry as a whole, because times of slow growth are helpful to exterminate the weak projects and create space for innovations.

Google seems to accept that the decline in the income of crypto -related advertisers will not be long -lasting. At the beginning of this month, it signed a contract with Coinbase to start accepting crypto payments from its cloud customers.

Lars Seier Christensen, chairman of Concordium and founder of Saxo Bank, said that the new Google partnership is a "general confirmation of the cryptor compartment", in which more and more companies accept crypto as a viable offer for goods and services.

"But what is more important, there is no question that Google did this to win additional market shares for its growing cloud business. This means that Google has recognized a real business potential in the equally growing number of crypto-native companies," he added.

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The article Google Summer ad Business Falls after crypto winter is not a financial advice.