Alphabet’s Google ad revenue fell in the third quarter of 2022 as search spending on financial services and cryptocurrency subcategories declined.
The latest earnings report from Alphabet, the parent company of Google, revealed a decline in search ad spend in the financial services and crypto subcategories.
Alphabet released its third quarter earnings report on October 25th, bringing total revenue up 6% to $69.1 billion from the third quarter last year. Revenue was slightly down compared to the second quarter of 2022 at $69.7 billion.
However, a breakdown of Google services revenue, including ad revenue, showed the segment grew to $61.3 billion from $58.8 billion last year.
Philip Schindler, COO of Google, drew attention to the conflicts in the financial and cryptocurrency sectors, especially during the Alphabet earnings announcement on October 25:
“We are seeing some advertiser spending decrease in certain areas of search advertising. For example, in financial services, we are seeing declines in the subcategories of insurance, credit, mortgages, and cryptocurrencies.”
Google updated its Financial Products and Services Policy in July 2022 to clarify the scope and necessity of advertising related to cryptocurrency businesses, services and products. This sets rules for advertisers of exchange services and wallets targeting countries including France, Germany, South Korea, Philippines, United Arab Emirates, Hong Kong and Thailand.
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Advertisers may continue to promote cryptocurrency-related products and services through the Google advertising platform if they comply with certain legal requirements in those jurisdictions.
The change comes a few months after Google greenlit the cryptocurrency-related ads in August 2021. The multinational tech giant previously banned ads related to cryptocurrencies and initial coin offerings in June 2018.
The global and cryptocurrency markets are still having a tough time despite what analyst firms like Glassnode have called the worst bear market on record.
However, the decrease in advertising spending in the cryptocurrency sector does not reflect Google’s position on space. In October, Google announced a partnership with U.S. cryptocurrency exchange Coinbase to enable payment for cloud services using bitcoin.