osoft Search and Advertising Revenue up 3.4% in the first quarter //

Microsoft’s Advertising Business posted a lackluster growth rate in the first quarter 2023.

Microsoft’s advertising and search revenues increased by 3.4%, to just under $3 billion in the last quarter. This includes traffic acquisition costs paid to publishers. The company attributes the growth to increased search volume, and its acquisition by AT&T of Xandr an ad-buying platform.

LinkedIn’s revenue increased 7.6%. Microsoft attributes the growth to its Talent Solutions product. Microsoft also reported that the number of LinkedIn sessions increased by 15%.

Why we care. Microsoft’s announcement of earnings for the last quarter was a clear indication that advertising expenditure was on the decline. The company forecasted low single-digit growth and delivered.

As if it were needed, the pace of growth confirms that advertising demand is in decline. The release of Bing was not expected to bring in a large amount of revenue.

The article Microsoft Search and Advertising Revenue Up 3.4% in Q1 first appeared on Search Engine Land.