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Major Tech Companies Feel the Burn as Digital Ad Revenues See Multi-Billion Dollar Decline

Digital ads are a major source of revenue for most major tech companies, and they have been seeing a major decline this past year. Meta and Google continue to hold the lead in terms of digital ad revenue, but in spite of the fact that this is the case their profits have been decreasing after a period of growth seen throughout the duration of 2021. The first quarter of 2022 saw this revenue stream stagnating for almost every major tech enterprise out there.

Google holds a comfortable lead to secure the top spot, but with all of that having been said and now out of the way it is important to note that its Q2 2022 revenues are still down from the fourth quarter of 2021. Q4 2021 saw Google’s revenues from this source soar to $61.24 billion, but this quickly dropped to $54.6 billion in the next quarter and subsequently rose somewhat to $56.3 billion in the second quarter.

Meanwhile, Meta has seen barely any growth year over year which is concerning because of the fact that this is the sort of thing that could potentially end up further dragging down the struggling company’s stock price. In the second quarter of 2021, Meta’s digital ad sales brought in revenues of around $28.58 billion, but after a year these revenues have decreased to $28.15 billion with all things having been considered and taken into account.

Amazon has also seen stagnant growth rates for its digital ads, with its Q4 2021 high of $9.72 billion proving to be a hard nut to crack. Its revenues for the first quarter of 2022 were $7.88 billion, and in the second quarter they managed to increase to $8.76 billion.

Twitter and Snapchat are going neck and neck, though this is a dubious distinction. Both companies have barely seen any growth, and their current quarterly revenues are hovering at just above the one billion dollar mark. That suggests that this will be a tough year for digital ad sales, and it will be interesting to see if next year brings some relief.

H/T: InsiderIntelligence
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