Google ad revenue slides again as platform’s dominance is challenged

The company is betting on new areas, including short-form video and generative artificial intelligence, to spur a turnaround

Apr 27, 2023

Google’s advertising revenue shrunk for the second consecutive quarter, reflecting a sustained slowdown on YouTube and the impact of broader macroeconomic headwinds, according to an earnings report from parent company Alphabet.

Key takeaways

  • In the chase for new revenue growth, the company is prioritizing YouTube Shorts, the platform’s answer to TikTok, along with connected TV, commerce and subscription services;
  • Generative AI has also become a top agenda item, with plans to significantly overhaul search in ways that will impact advertisers and publishers;
  • Search revenue was up about 2%, attributed to healthy demand from the travel and retail vertical.

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