Google Reports Ad Revenue Recovery in Q3 After Rare Drop 

Google saw its advertising revenue increase in the third quarter as it benefits from the same recovery that has lifted other tech companies as well. 

The tech giant’s 9.5% increase in advertising revenue was boosted by an increasing demand for ads placed next to search results, the Wall Street Journal (WSJ) reported Tuesday (Oct. 24). 

Google’s video platform, YouTube, saw a 12% boost in advertising revenue, helped by new business from the NFL Sunday Ticket package it began licensing this year, according to the report. 

Earlier, Google had been suffering from a rare drop in advertising revenue that was caused by an economic slowdown, the report said. 

The gains in the ad business came as Google saw an overall year-over-year increase in revenue of 11%. 

“The fundamental strength of our business was apparent again in Q3, with $77 billion in revenue, up 11% year over year, driven by meaningful growth in Search and YouTube, and momentum in Cloud,” Ruth Porat, president and chief investment officer; chief financial officer said in a Tuesday (Oct. 24) earnings release. “We continue to focus on judicious capital allocation to deliver sustainable financial value.” 

There were suggestions of a possible recovery of the digital advertising industry in the spring, as major tech companies like Amazon and Meta experienced a boost in advertising revenue, PYMNTS reported in May. 

For example, Meta saw a 4.1% increase in advertising revenue in the first quarter — its first such increase in almost a year. Google at the time reported a 1% decrease in advertising revenue growth. 

The increases in advertising revenue reported by some tech companies suggested that retailers were still placing a high priority on digital advertising despite a slowdown in consumer spending due to inflation. 

About a month before that report, in April, it was reported that two digital media organizations — Buzzfeed and Insider — made job cuts amid an advertising slowdown. 

Buzzfeed shut down its news operation and eliminated 180 jobs, while Insider cut 10% of its staff, Bloomberg reported April 20. At Insider, executives said the cuts resulted from the industry being “under significant pressure for more than a year,” per the report.