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
China dismisses EU trade deficit concerns as leaders meet

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

‘Chicken is stealing the show’ over beef at McDonald’s, analyst says

McDonald’s Corp. continues to show that it’s better and getting bigger, one…

Foreign investors tiptoe back in to Turkey’s domestic bond market

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

GameStop’s new investment policy ‘alarming’ and ‘inane,’ says Wedbush

GameStop Corp.’s decision to extend its investment policy to include equities is…

Digital advertising is still far too murky

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

Earnings call: A.k.a. Brands reports Q3 2023 results, highlights growth in U.S. business and progress in key priorities

By News Room
Stocks

Earnings call: Perimeter Solutions reports Q3 2023 earnings, addresses mild fire season impact and inventory destocking

By News Room
Stocks

Earnings call: Bioventus Inc. reports third quarter earnings, outperforms expectations, and raises annual guidance

By News Room
Stocks

Earnings call: Angel Oak Mortgage REIT reports strong Q3 2023 performance, focuses on growth

By News Room
Stocks

Earnings call: Adeia’s Q3 2023 results show strong deal momentum, revenue guidance narrowed

By News Room
Stocks

Earnings call: TELA Bio reports robust Q3 2023 results, projects strong YoY growth

By News Room
Stocks

Earnings call: Runway Growth Finance announces robust Q3 2023 results and optimistic outlook

By News Room
Stocks

Earnings call: Nikon raises revenue forecast, adjusts operating profit amid mixed business performance

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?