4 2022, Google search, YouTube revenue, and network all declined //
Google yesterday reported that search, ad network and YouTube revenues all declined in the fourth quarter 2022. Google’s ad revenue dropped 3% to $59 Billion.
The most resilient was search advertising revenue, which fell 1.6% in the fourth quarter 2022 as compared to Q4 20201. YouTube and Google Network revenue fell 8.6% and 7.0%, respectively.
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Google Q4 2022 Ad Revenue Segment |
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| Q4 2022 | Q4 2021 | Change | |
| Search & Other | $42.6 billion | $43.3 billion | – 1.6% |
| Google Network | $8.5 Billion | $9.3 Billion | -8.6% |
| YouTube | $8.0 billion | $8.6 Billion | -7.0% |
Poor economic conditions. CNBC’s Ruth Porat, Google CFO, said that YouTube’s slowdown was due to a decrease in both direct and planned advertising in an economically challenging environment. In an effort to achieve long-term profitable growth, she said Google is slowing down its hiring pace. Last month Google announced that it would layoff 6% of the company’s workforce, or approximately 12,000 jobs. It employs approximately 187,000 people.
ICYMI, also blamed the poor economic climate on their weak ad demand.
YouTube is in trouble YouTube’s ad revenues fell below analyst expectations to reach $7.96 Billion, which is a decrease by 8% from the $8.63 Billion in the previous year. Sundar Pichai, Google CEO, stated that YouTube is facing increased competition from TikTok for short-form videos. Meta said that TikTok competition was also limiting growth.
YouTube will begin paying for rights to pro football games. This could make YouTube’s financial outlook even worse. YouTube was announced by the National Football League in December that it will pay $2 billion per year for “Sunday Ticket” broadcast rights to homes. This is a seven-year agreement. This deal is expected to be a loss leader that allows YouTube to attract more subscribers.
Dig deeper. Here are the earnings.
Why we care. A decrease in ad revenue can impact the platform’s ability reach its target audience, and consequently the success of its advertising campaigns. A lower ad revenue can also mean less investment in platform innovations and improvements, which could lead to less favorable advertising environments.
A steady decline in ad revenue could also cause pricing changes, increased competition for ad placements and modifications to the platform’s advertising policies. Advertisers could lose more control over campaigns if Google turns its attention to AI.
A decline in revenue could lead to a decrease in demand, which could reduce ad cost for advertisers.
The post Google Search, Network, and YouTube Revenue All fell in Q4 2022 was first published on Search Engine land.