During Alphabet’s earnings call on September 25, Google’s Chief Business Officer, Philipp Schindler, admitted to seeing reduced search spending during the third quarter of 2022.
“In financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories,” Schindler was quoted as saying.
According to CNBC, this three-month period was the company’s weakest of all quarters since 2013, with overall ad growth of 6%. The only exception was the start of the COVID-19 pandemic.
YouTube suffered a similar fate to Google, as its revenue fell on an annual basis. Sundar Pichai, CEO of Google, believes that the challenging macroeconomic environment is having a significant negative impact on the ad business.
Some of the most popular and well-known cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), have lost nearly 60% of their value by 2022.
Furthermore, the crypto industry has recently been plagued by the bankruptcies of major companies such as Celsius Network and Voyager Digital.
Coinbase is another well-known cryptocurrency that is struggling. The company reduced its workforce by 18%, and its stock price has dropped by 70% this year.
In the third quarter of this year, Google announced a partnership with Coinbase. It will now rely on Coinbase to accept cryptocurrency payments for its cloud services. Coinbase’s data-related applications will also be moved to Google’s cloud infrastructure.