Google lost a significant part of its profits due to the fall of cryptocurrencies

The international conglomerate of companies Alphabet Inc., which includes Google, reported a sharp drop in its own revenues, blaming it on the bear market.

According to the financial report for the third quarter of 2022, Google’s advertising revenue fell by $ 1.3 billion, and YouTube’s by $ 13 million. Alphabet attributed this to a decrease in demand for cryptocurrency advertising due to the fall in the value of digital assets. The growth of the tech giant’s advertising revenue fell to 6% of total revenues, the lowest since 2013. For comparison, revenue in 2021 amounted to 41% of the previous year’s total.

«In the third quarter, we saw a decrease in spending by some advertisers in certain search areas. For example, in insurance, loans, mortgages, and especially cryptocurrencies,» explained Google’s chief business officer Philip Schindler.

Obviously, such a dependence of Alphabet’s revenues on cryptocurrency advertising indicates the growing popularity of the digital asset industry. However, this was not always the case. In 2018, Google banned cryptocurrency-related ads. In 2021, the search giant lifted the ban, and in 2022, it signed a partnership agreement with one of the largest cryptocurrency exchanges, Coinbase. In August 2022, it became known that Alphabet had invested $ 1.56 billion in blockchain companies in the United States over the year.

In late July, the Google Pay mobile payment system announced the launch of support for cryptocurrency payments with the Crypto.com exchange. Android users can buy, sell, and exchange cryptocurrencies through Google Pay, which is used by more than 100 million people. Obviously, such cooperation is beneficial for both parties — Google Pay expands its functions and keeps up with the times, while Crypto.com increases its customer base and, consequently, its revenue.