- With the fall of the crypto market, companies stopped investing in advertising, thus affecting revenue from ad sales on Google.
- This drop in Google Ads means the most serious since 2013.
- In addition to the loss of advertising revenue, Google has invested $1.5 billion in the industry earmarked for cryptocurrency-focused companies.
Although in the last hours the crypto market has turned green with candles above 10% in some of the most important coins, the crypto winter has not disappeared and digital assets, with Bitcoin in the lead, are far from the historical highs recorded. in 2021.
This sustained decline that has manifested itself in recent months, breaking some negative records, has not only affected the holders, those who have their long-term position, but also companies and different industries. Mining companies lost much of their projection, while MicroStrategy and Tesla have also been affected. Google, beyond not having BTC in its portfolio, is not exempt from this fall.
How has the crypto winter affected Google?
Google is the fourth largest company in the world behind Apple, Saudi Aramco and Microsoft. The firm has a market capitalization of $1.205 billion dollars, but, how is it that this firm lost in this BTC decline? Very simple: lower income through the advertising business of Google Ads.
During 2020-2021, with the explosion of COVID-19, cryptocurrencies had their big takeoff by breaking the all-time record of $20,000 set in 2017 to break the $68,000 line. This caused crypto companies, especially centralized exchanges, to spend millions of dollars on marketing and advertising to add new users.
Today, with the market in the red, investors moved away and also the search for new ones. A CNBC report, replicated by Bitcoinist, proved it. Philipp Schindler, the Chief Business Officer (CBO) of Google, did not deny it and admitted the numbers.
“In the third quarter, we saw a decline in spending by some advertisers in certain search areas. For example, in financial services, we saw a decline in the subcategories of insurance, loans, mortgages and cryptocurrencies.”, he highlighted.
Google loses everywhere
This drop in Google Ads means the most serious since 2013: the company hadn’t had such a bad quarter for nearly a decade. ANDThis global scenario is combined with the highest inflation in the United States and some European countries in many years.
The little advertising revenue adds to the fact that Google has registered a 24% drop in the last year from its maximum of $150 dollars per share. Bitcoin and Ethereum, meanwhile, are below 70% of their cap.
While Google doesn’t own BTC, it has invested in the cryptocurrency industry: According to Bitcoinist, there was $1.5 billion in support for “cryptocurrency-focused companies from September 2021 to June 2022 through its parent company, Alphabet”. Some of them are Dapper Labs, Vultage, Fireblocks and Digital Currency Group (DCG).
Despite its decline, Google remains one of the largest companies in the world and with a fearsome market capitalization: 1,205 billion dollars. As mentioned, it is only surpassed by three others: Apple (2,327B), Saudi Aramco (2,032B) and Microsoft (1,691B).
The top 10, according to the report of Companies Market Capit is completed by six other US companies: they are Amazon (1,130B), Tesla (700.25B), Berkshire Hathaway (639.55B), UnitedHealth (506.79B), Johnson & Johnson (453.05B) and Exxon Mobil (448.22B).
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