Amid the unfavorable market conditions, crypto firms have cut back on advertising spending. This move has impacted significantly Google’s revenues.
According to CNBC, Philipp Schindler, Google’s chief business officer, noted:
“In the third quarter, we did see a pullback in spend by some advertisers in certain areas in search,” Schindler said. “For example in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories.”
In the advertising category, Google’s Q3 growth was 6%, which is the lowest since 2013 excluding the beginning of the pandemic. YouTube ad revenue has also fallen from a year earlier.
The crypto industry has gone through a lot of upheaval in 2022. Investors have lost interest in risky assets, selling their crypto as well as the stocks they bought several years ago.
Bitcoin and Ethereum have both lost nearly 60% of value this year. Not only that, the crypto industry has been beset by bankruptcies. Many well-known investment funds such as Celsius Network, Voyager Digital, and Three Arrows Capital fell into default and were forced to cease operations.
Elsewhere, companies have also downsized. Blockchain.com laid off 25% of its staff in July, Coinbase cut 18% of its workforce the prior month, and Crytpo.com has undertaken two rounds of layoffs this year.
Global markets are also weathering difficult times, with the latter enduring what analytics firms like Glassnode have dubbed as the worst bear market on record.
Nevertheless, the decreased advertising spending from the cryptocurrency sector does not reflect Google’s attitude toward the space. Google announced a partnership with American cryptocurrency exchange Coinbase in October to allow payments for cloud services with Bitcoin (BTC) and Ether (ETH) in 2023.
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