Alphabet, Meta, and Snap’s recent earnings this week indicated negative numbers after a difficult 2022 in which they were reliant on ads’ revenue.
Alphabet, Meta and Snap Ad Business
Many advertisers have cut back their spending because of high inflation. They are also worried that there will be a recession soon, as the ad business is highly correlated with the stability of the economy.
Alphabet announced a small decline in ad revenue last week, which fell short of analyst forecasts. Meta, the world’s number two digital advertising platform, reported as well, a YoY loss due to market volatility.
Snap, on the other hand, announced last week that up to 10% of its ad revenue will be lost due to the hard and difficult economy.
To survive in this market, advertisers, remain cautious and big tech are trying to cut back on costs such as labor.