Meta's advertising business grew more than twice as fast as Google's Search and other segment in the third quarter. Meta's total ad revenue now sits within roughly $290 million of Google's search ads business. Meta credited its AI investments, while Alphabet faced pressure from chatbots and AI-related spending concerns.
Meta's advertising revenue grew more than twice as fast as Google's Search and other segment in the third quarter. Its total ad haul now sits within roughly $290 million of Google's flagship search ads business.
Meta's ad revenue rises 26%
Meta posted total revenue of $64.6 billion for the quarter, a 26% jump from a year earlier. Ad revenue came in at $63.061 billion, up from $50.082 billion in the same quarter last year.
The growth came from two directions: ad impressions rose 10%, and the average price per ad climbed 14%. Meta credited its artificial intelligence investments, pointing to improvements in engagement, recommendations, and monetization. Nearly 10 million advertisers used the company's generative AI creative tools during the quarter.
Google Search grows 12%
Alphabet's results told a more complicated story. The Google parent reported total revenue of $127.6 billion, up 25% year over year.
Google's advertising revenue, however, reached $82.01 billion, growing approximately 10.6-11%. Search and other ads brought in $63.35 billion, up 12%, while YouTube ads contributed $11.21 billion, a 9% gain. Meta's ad business, by comparison, pulled in about $63.1 billion.
Chatbots pressure Google's search box
Chatbots offer people a new way to find answers, and that pressures the traditional search box where Google makes much of its money. Alphabet did point to a bright spot: the company said AI has driven its highest Search query growth rate in five years.
Even so, Alphabet's core advertising segment slowed compared with previous periods, and results fell short of some analyst expectations. The company also faced investor concerns about AI-related spending and negative free cash flow.
Alphabet still runs a much larger overall business, with total revenue nearly double Meta's.
Source: Crypto Briefing
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