Google Reports Decline in Crypto Ads Revenue Since July
- Google recently announced a partnership with Coinbase, allowing customers to pay for cloud services with cryptocurrency.
- The bear market has seen projects such as Celsius Network, Voyager Digital, and Three Arrows Capital file for bankruptcy.
- In July, Google updated its financial products and services policy to clarify the requirements for crypto-related ads.
Crypto investors and traders are not the only ones feeling the heat of the bear market. Web2 giant Google, recently revealed that revenue from crypto ads has been at a low since July. During the latest earnings call, Google’s chief business officer, Philipp Schindler, blamed a slowdown in revenue growth partly on financial institutions’ lower ad spending. Philipp made two references to the crypto pullback but offered no further context or details.
He was quoted as saying,
In the third quarter, we did see a pullback in spend by some advertisers in certain areas in search. For example in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories.
Google’s overall ad growth of 6% in the quarter was the company’s lowest since 2013, except during the early phase of the COVID-19 pandemic. Google CEO Sundar Pichai noted that the difficult macro climate affects Google’s advertising business.
Ads have been a great income stream for Google. In July this year, the company updated its financial products and services policy to shed light on the parameters and requirements for advertisements relating to cryptocurrency organizations, services, and products.
This established guidelines for crypto marketers and companies seeking to expand their influence in regions such as Hong Kong, Germany, South Korea, the United Arab Emirates, Thailand, and France. Crypto projects can advertise their services in these regions as long as they meet the standards in these countries.
Despite the turmoil in the crypto space, Google sees solid potential for growth in the industry and believes the crypto winter is only a temporary blip. Google announced earlier this month that starting in 2023; it will rely on Coinbase to enable users to pay for cloud services with cryptocurrency. Additionally, Coinbase will switch from Amazon Web Services, which the business has relied on for years, to Google’s cloud infrastructure for apps dealing with data.
The cryptocurrency market has suffered in 2022 due to investors’ departure from risky investments, their selling of digital currencies, and the related stocks they had bought up over the previous two years. As a result, top cryptocurrencies such as Ethereum and Bitcoin have lost 60% of their value while different projects were forced to file for bankruptcy.
Others had to reduce their workforce to stay operational. For example, Crytpo.com has undergone two layoffs, while Blockchain.com dismissed 25% of its employees in July. Similarly, Coinbase trimmed its staff by 18% in June.