A number of big tech companies shared their Q3 earnings this week.
And there’s some good news and some bad news.
…all except for Youtube.
The bad news: The growth rate was slower than expected:
- Google’s total advertising sales increased to $54.5 billion from $53.13 billion the previous year, but fell short of analysts’ expectations of $56.58 billion.
- Microsoft’s search and news advertising revenue increased by just 16% over the previous year.
- Spotify’s ad-supported Revenue grew 19% year-over-year to €385 million. The growth was slower than expected.
YouTube shrinks: YouTube ad revenues fell for the first time since Google began disclosing them publicly.
They were $7.2 billion last year, and today they were reported to be $7 billion.
According to Evelyn Mitchell, principal analyst at Insider Intelligence: “When Google stumbles, it’s a bad omen for digital advertising at large.”
Why we care: There’s a common trend among tech companies of growth slowing… barring exceptions.
But from adversity comes opportunity… And there might be more opportunties to buy ads from the “big hitters” for discount prices as advertisers keep cutting their ad spend.