Google saw advertiser pullback in financial services, including the cryptocurrency subcategory, according to the latest earnings call from Google’s parent company, Alphabet.
Alphabet’s revenue from Google advertising dropped in the third quarter of this year, said Philipp Schindler, SVP and CBO at Google.
Schindler stated that,
“In the third quarter, we did see a pullback in spend by some advertisers in certain areas in Search ads. For example, in Financial Services, we saw a pullback in the insurance, loan, mortgage and crypto subcategories.”
He added that the company is “operating in an uncertain environment.”
Later in the call, Schindler said that there was also a pullback in spending by some advertisers on YouTube and Network – which increased in the third quarter.
Notably, in July this year, Google updated its financial products and services policy, which included requirements for crypto-related advertisements. These updates focused on France, Germany, South Korea, the Philippines, the United Arab Emirates, Hong Kong, and Thailand.
The company made a significant step in August last year when it updated its policy to allow crypto exchanges and wallets targeting the US to advertise their products and services after meeting several requirements and being certified by Google.
The company published its Q3 2022 financial results on October 25. The report noted a 6% increase in revenue totaling nearly $69.1 billion compared to the same quarter last year. Revenues saw a decrease from $69.7 billion recorded in Q2 2022.
When it comes specifically to ad earnings, there was a slight drop in YouTube ads this year in Q3 compared to 2021, while Google advertising went up. Google Services saw a drop as well in Q3 2022, compared to Q3 2021.
Nonetheless, the company’s crypto-related ventures continued. Earlier in October, Google announced a deal with major crypto exchange Coinbase to enable select customers to pay for its Cloud services using cryptoassets such as bitcoin (BTC) in early 2023. Over time, Google would allow more customers to make payments with crypto, said Amit Zavery, vice president and general manager and head of platform at Google Cloud. Furthermore, Coinbase would move some of its applications to Google’s cloud.
Compiled by Coinbold