By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Stocks > Alphabet, Meta lure back advertisers as smaller rivals struggle
Stocks

Alphabet, Meta lure back advertisers as smaller rivals struggle

News Room
Last updated: 2023/04/30 at 9:18 AM
By News Room
Share
4 Min Read
SHARE
2/2

© Reuters. FILE PHOTO: The logo of Google LLC is seen at the Google Store Chelsea in New York City, U.S., January 20, 2023. REUTERS/Shannon Stapleton/File Photo

2/2

By Sheila Dang

(Reuters) -Advertisers are sticking with safe havens Alphabet (NASDAQ:) and Meta Platforms in an uncertain economy, their quarterly results showed, likely helping the tech giants take market share away from smaller digital ad sellers such as Snap Inc (NYSE:).

Following a pandemic-led spending bonanza by advertisers who wanted to reach customers online, ad sales-reliant tech firms faced tough comparisons in the past several quarters. Customers cut their ad budgets after interest rates rose and record-high inflation fueled worries about the economy.

This year, though, the social media ad market is expected to grow at a slightly faster pace than in 2022, according to a report last month from media and intelligence firm MAGNA.

“Advertisers are simply going back to platforms they know, like and trust,” said Brian Mulberry, a portfolio manager at Zacks Investment Management.

First-quarter ad sales at Google-parent Alphabet slipped from a year earlier to $54.55 billion, but beat what analysts were expecting.

Advertisers are facing an environment where they must “do more with less,” Philipp Schindler, Google’s chief business officer, said on an earnings conference call on Tuesday.

The company on Tuesday played up its work in artificial intelligence (AI), saying that helped it improve the relevance of ads shown to users and even automatically generate text that can be used in a brand’s ads.

Meta, on Wednesday, echoed this, saying AI recommendations had increased the time users spend on Instagram by 24% in the first quarter and that it was investing in AI to lure advertisers to spend more on its platforms.

Meta shares spiked 12% in after hours trade on Wednesday.

The social media advertising market overall is expected to grow 6% this year to $66 billion, according to MAGNA.

Last year, the social media ad market grew 2% in part because privacy updates by Apple Inc (NASDAQ:) made it more difficult for advertisers to gather user data to serve targeted ads.

“There’s a lot of inertia to staying put with platforms that you’re familiar with and have tools that are well-developed for advertisers,” said Insider Intelligence principal analyst Debra Aho Williamson.

Advertisers have snubbed Snapchat-owner Snap and digital pinboard Pinterest (NYSE:) , which reach only a fraction of potential consumers as their larger rivals. The two companies lost more than $4 billion in combined stock market value on Thursday after reporting first-quarter results.

Snap posted a 7% decline in revenue and warned that second-quarter revenue could also take a hit, as recent changes to its advertising platform have hurt ad demand.

While Pinterest reported 5% revenue growth and said it expects similar second-quarter growth, the forecast came below Wall Street’s expectations, sending its shares down 9% in after-market trading.

Read the full article here

News Room April 30, 2023 April 30, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
The nuclear mountain that haunts Israel

To Israeli military planners, it is akin to Mount Doom: a tightly…

Israeli attacks revive bitter Iranian memories of 1980s Iraq war

On the first night of Israel’s air strikes on Tehran, Sanam, a…

Carmakers seek western supplies of rare earths and magnets

Stay informed with free updatesSimply sign up to the Automobiles myFT Digest…

Why Saudi Arabia raised oil output before Israel’s attack on Iran

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Israel-Iran latest: Iran and Israel exchange fresh strikes as conflict escalates

Iran’s Revolutionary Guards have threatened “more forceful and expansive” attacks against Israel…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

Playa Hotels & Resorts (NASDAQ:PLYA) Delivers Strong Q4 Numbers By Stock Story

By News Room
Stocks

ON24 (NYSE:ONTF) Posts Better-Than-Expected Sales In Q4 By Stock Story

By News Room
Stocks

Evolent Health shares leap on Q4 earnings beat and upbeat guidance By Investing.com

By News Room
Stocks

Chuy’s (NASDAQ:CHUY) Reports Q4 In Line With Expectations But Stock Drops

By News Room
Stocks

Red River Bancshares raises dividend to $0.09 per share

By News Room
Stocks

Ecolab appoints Microsoft executive to board

By News Room
Stocks

Semilux secures $50 million equity deal with White Lion Capital

By News Room
Stocks

US government debt trajectory to push long-term yields higher, says PIMCO

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?