Alphabet and Meta are profiting well from advertisers which is reflecting in their quarterly results. As per an earnings report, Alphabet’s first quarter revenue this year rose to $69.79 billion from $68 billion last year. Meta’s quarterly revenues stood at $28,645 as compared to $27,908, as cited by Facebook.
This poses a threat to smaller digital ad sellers like Snap Inc. Its quarterly revenue is currently at $1.01 billion, which indicates a decline by 5.42 percent from last year, as stated by Yahoo.
With an economy gripped by high inflation, this has worried the customers or advertisers who have cut their budgets, also citing rise in interest rates.
According to a report that was released last month by MAGNA, a media and intelligence firm, this year the social ad market is expected to grow at a faster pace as compared to 2022.
Alphabet mentioned that it has upped its work in artificial intelligence by helping improve the relevance of ads shown to the users. Furthermore, the company is helping generate text which can be used in a brand’s ad.
Meta too seconded Alphabet’s point. The company mentioned the user’s time on Instagram increased by 24 percent. Hence, Meta is investing in AI to lure advertisers to spend more of their time on their platforms.
According to MAGNA, the overall social media market is expected to grow by six percent to $66 billion. Last year, the market grew by two percent due to privacy updates put down by Apple which became more difficult for advertisers to gather data about users and put out or serve targeted ads.
According to Refinitiv, Pinterest is expected to post a three percent year-on-year rise in quarterly revenue today.