Search, ad network, and YouTube revenues all fell in the fourth quarter of 2022, Google reported yesterday. Overall, Google ad revenue fell 3% to $59 billion.
Search advertising revenue was the most resilient, falling 1.6% in Q4 2022 compared to Q4 2021. Google Network and YouTube revenue declined 8.6% and 7.0%, respectively.
A poor economic climate. Google CFO Ruth Porat told CNBC the YouTube slowdown on a pullback in both planned and direct response advertising in a challenging economic climate. She said Google is slowing the pace of hiring in an effort to deliver long-term profitable growth. Last month, Google said it would lay off around 6% of its workforce or roughly 12,000 jobs. The company has about 187,000 employees.
ICYMI, Meta also blamed a poor economic climate on their own weak ad demand.
Trouble for YouTube. YouTube’s ad revenue fell below analyst predictions to reach $7.96 billion, a decrease of 8% from the previous year’s $8.63 billion. On Thursday, Google CEO Sundar Pichai said in addition to the overall pullback in ad spending, YouTube is also facing heightened competition from TikTok in short-form videos. Meta also said competition from TikTok was limiting growth.
The financial outlook at YouTube could get even bleaker as it begins paying for rights to professional football games. In December, the National Football League announced that YouTube will pay approximately $2 billion annually for the rights to broadcast “Sunday Ticket” to homes, in a seven-year...
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