Google Struggles with Ad Revenue as Crypto Firms Reduce Spending

Alphabet said that reduced advertising spending by crypto companies has undermined Google’s revenue growth during the third quarter of 2022.

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The ongoing crypto winter has brought a slowdown in ad spending, as the overall market sentiment has turned negative since the beginning of 2022. Many companies have gone bankrupt, such as Celsius Network, and other crypto companies have become hesitant to invest during this market downturn period.

According to Google’s chief business officer Philipp Schindler, other financial firms have also become hesitant in spending on ads.

“In the third quarter, we did see a pullback in spend by some advertisers in certain areas in search,” Schindler said. “For example, in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories.”

According to Alphabet’s third-quarter earnings call, Google saw a 6% slowdown in revenue growth from 41% a year earlier. Besides the one quarter at the beginning of the pandemic, this result was the weakest for any period since 2013.

CEO Sundar Pichai stated that the “challenging macro climate” has affected Google’s ad business.

However, Schindler did not specify how ad pullback from crypto companies has affected Google’s revenue.

But the overall drawback of investors from the crypto industry is the plausible reason. As the crypto industry struggles, many investors are fleeing from risky assets and selling out digital coins and related stocks.

Popular digital currencies such as Bitcoin and Ethereum have both lost about 60% of their value in 2022. While popular crypto exchange Coinbase is down by 70%.

Google, however, believes that the ongoing crypto winter is a short-term crisis and opportunities for growth shall rise again in the future.

In early October, Google teamed up with Coinbase to allow some of its clients to pay for cloud services using cryptocurrencies.

The strategic partnership also seeks to cater for the needs of the growing Web3 ecosystem. For instance, developers will have the chance to reliably and instantly operate Web3 networks, eliminating the need for complex and expensive infrastructure. 

The collaboration will also see Google Cloud serve as Coinbase’s strategic cloud provider to boost enhanced exchange and data services. Per the report: “Coinbase will use Google Cloud’s powerful compute platform to process blockchain data at scale and enhance the global reach of its crypto services by leveraging Google’s premium fibre-optic network.”

Furthermore, Coinbase’s clients will leverage Google Cloud’s data and analytics technologies for machine learning-driven crypto insights.

Google set the ball rolling in Web3 after it assembled a team to create services for developers earlier this year. 

Image source: Shutterstock


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Meta Lifts its Crypto Advertisement Banning Policy

The social networking giant Meta, previously known as Facebook, announced on Wednesday that it would withdraw its policy of banning most cryptocurrencies from advertising on its social platforms.

In the statement, Meta stated that advertisers are now allowed to submit applications and need to provide the relevant licenses, regardless of whether they are trading on a public stock exchange or other related business disclosure backgrounds.

Meta disallowed the advertising of cryptocurrencies as early as January 2018. The policy started to be slightly relaxed in May 2019.

The acceptance of advertisements related to cryptocurrency has positive significance for the entire cryptocurrency industry, which will make it easier for more retail investors to access the news of the cryptocurrency industry.

Meta team said in a statement that:

“We’re doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry.”

Former Facebook employee Emad Hasan said that the new policy will also bring good news to start-ups engaged in blockchain work.

The latest lifting get relief to advertising sectors. Last month on October 19, Facebook Inc announced that it has launched its new digital wallet for crypto assets called Novi.

David Marcus, the head of cryptocurrency projects at Meta Platform Inc (formerly Facebook), announced on Tuesday, November 30, that he will be departing the firm by the end of the year to begin working on something new.

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Bitcoin Exchange FTX Buys Super Bowl Ad

Today, Bloomberg reported that bitcoin exchange giant FTX purchased an ad slot for the upcoming Super Bowl LVI on February 13, 2022, at SoFi Stadium in Inglewood, California. The exchange did not provide a comment on how much the ad was purchased for or what the content will consist of.

“We’re inviting everyone to check it out, and here to help them on their journey. There is no bigger, more mainstream event to share a message like that than the Super Bowl,” Bankman-Fried said. “Our message throughout this year has been that crypto is safe, accessible, and ready for the mainstream.”

The Super Bowl is one of the most viewed sporting events there is, with just over 96 million viewers watching the latest Super Bowl LV. This is the main reason behind FTX purchasing this ad, to take advantage of all the eyes that will be watching. NFL legend Tom Brady has already expressed his interest in the exchange, purchasing an equity stake in the company earlier this year.

FTX seems to be trying to cover all bases in sports after partnering with NBA legend Steph Curry as well as buying the rights to the Miami Heat’s home court and renaming it the FTX Arena. They have also become the official exchange of Major League Baseball (MLB).

Earlier this year, FTX raised $900 million series B fundraise to become the largest raise by any exchange in history. 


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Gather Network Liberates Content for an Ad-Free Future

The world has a voracious appetite for content. The internet helps feed this appetite with new content that is created by the minute. It’s a simple dynamic, but it’s one that has been muddled for decades by advertising, paywalls, and even breaches of privacy. Content creators seek ways to profit from their service, like Facebook, or simply pay their electric bills, like Wikipedia, but no customer likes running into popups, and companies hate seeing their bounce rates jump through the roof when users run into a paywall.

Gather Network introduces an interesting use case for blockchain technology that could revolutionize the way people access content online, benefiting everyone involved. By marrying the needs of blockchain technology and the recent rise of the sharing economy, a new paradigm for content delivery and consumption is set to sail some smooth seas.

Through Gather, users provide a small amount of computing power while accessing ad-free content, blockchains get the computing power they need to keep running, and content providers get paid without harassing their user base. Everyone wins. 

An Internet of Annoyances and Intrusions

It’s getting easier to drive to the library and check out a cookbook than it is to find a good recipe online these days. On just one recipe site, you may have to click through popups, watch a video, and then scroll around the multiple advertisements that clutter the page just looking for how much oil you should put in the pan. User experience has declined tremendously via intrusive and annoying modes of revenue creation, and it’s estimated that people are so jaded by this assault on UX that they leave most websites within 15 seconds

Beyond matters of ease and the annoyance, privacy has cropped up as a big issue with content sites gathering and selling users’ information as a revenue stream. Richard Serra’s assertion “You are the product” has morphed from describing television advertising into a feedback loop of personal data that is harvested, sold, and regurgitated in advertising content. Most of the world was unaware of this process until the Cambridge Analytica hack revealed just how much information was being bought and sold. 

How Gather Can Solve These Problems 

Content providers are struggling to find revenue streams that reward their efforts, and users are cursing their screens. At the same time, blockchains are in need of mining power to keep their systems fully operational, secure, and quick. Gather has found a sweet spot where these needs can be multilaterally resolved, and promises to deliver a better future for users, creators, and blockchain technology through a symbiotic approach to generating revenue. 

If all you’re doing right now is reading this article, your computer is probably letting most of its computing power go to waste. Imagine how many people in the world have the most up to date technology under their keyboards, but they only use their computer for web browsing or accessing content. Now, imagine harnessing the unused power in your computer as a way to get rid of advertising when you use the internet. Imagine no more paywalls, no more popups, and the end of your data being continuously mined by sites that track your life. Gather makes it possible for users to access free content and for free content to be freely delivered without making people into the product being sold. 

Looking Forward to a Content-Rich, Ad-Free Future

Instead of checking a box to allow a website to track your data, you can check a box to allow a blockchain to use your extra processing power, and then you can finally read a newspaper or watch a video again without subscribing for a year or sitting through advertisements for dishwashing soap. Instead of being the person who runs these kinds of advertising schemes in order to prop up your newspaper or streaming channel, you can operate on revenue generated from happy customers who want more of your content. 

The internet has delivered massive amounts of accessible content, but much like Rousseau’s maxim that men are born free yet everywhere live in chains, this “free content” has come at a high cost. Users who opt into using Gather-powered websites will see positive changes in their online interactions, and websites will see positive returns as users enjoy accessing their content free of advertising and paywalls. 

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