Alphabet said that reduced advertising spending by crypto firms has undermined Google’s revenue growth during the third quarter of 2022.

The ongoing crypto winter has caused a slowdown in ad spending as the general market sentiment has turned negative since early 2022. Many companies have gone bankrupt, such as Celsius Network, and other crypto firms have been hesitant to invest during this downturn. From the market. period.

According to Google’s chief business officer Philipp Schindler, other financial firms have also been hesitant to spend on ads.

“In the third quarter, we saw a decline in spending by some advertisers in certain search areas,” Schindler said. “For example, in financial services, we saw a pullback in the subcategories of insurance, loans, mortgages and cryptocurrencies.”

According to Alphabet’s third-quarter earnings call, Google saw a 6% slowdown in revenue growth from 41% a year earlier. Other than the quarter at the start of the pandemic, this result was the weakest for any period since 2013.

CEO Sundar Pichai stated that the “challenging macro climate” has affected Google’s advertising business.

However, Schindler did not specify how the removal of ads from cryptocurrency companies has affected Google’s revenue.

But the general inconvenience of crypto industry investors is the plausible reason. As the crypto industry struggles, many investors are fleeing risky assets and selling digital currencies and related stocks.

Popular digital currencies like Bitcoin and Ethereum have lost around 60% of their value in 2022. While the popular cryptocurrency exchange Coinbase is down 70%.

However, Google believes that the ongoing crypto winter is a short-term crisis and growth opportunities will re-emerge in the future.

Earlier in October, Google partnered with Coinbase to allow some of its customers to pay for cloud services using cryptocurrencies.

The strategic partnership also seeks to meet the needs of the growing Web3 ecosystem. For example, developers will have the opportunity to operate Web3 networks reliably and instantly, eliminating the need for complex and expensive infrastructure.

The collaboration will also see Google Cloud serve as Coinbase’s strategic cloud provider to power enhanced exchange and data services. According to the report: “Coinbase will use Google’s powerful cloud computing platform to process blockchain data at scale and enhance the global reach of its crypto services by leveraging Google’s premium fiber optic network.”

Additionally, Coinbase customers will leverage Google Cloud data and analytics technologies for machine learning-based crypto insights.

Google got the ball rolling on Web3 after it assembled a team to create services for developers earlier this year.

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