The world’s biggest advertising platforms have mostly shrugged off an annoying dip in the digital runway.
The latest profit results show the big three -- Google, Meta, Amazon -- with revenue growth in the right direction, even if that wasn’t as elevated as expected for some.
Snap and Pinterest also reported growth for the June quarter.
Media industry analysts at Madison and Wall noted a deceleration of global advertising from many of them.
“Although levels of growth remain remarkably elevated, entirely consistent with our prior expectations for slowing growth, likely still at high-single digit levels during the quarter,” the analysts said.
Meta, which is the second largest player in digital advertising after Google, shone despite heavy investment in an AI-led future.
The parent of Facebook and Instagram, reported better than expected revenue growth in the June quarter, up 22% to $US 39.07 billion.
Ad impressions increased by 10% and the average price per ad also rose 10%.
Amazon reported its advertising business growing 20% to $US12.77 billion in the June quarter. This was seen as just below expectations by market analysts of $13 billion.
The business is still small compared to Amazon’s retailing but is growing fast, putting it third in the world behind Google and Meta for digital advertising.
Google reported better than expected revenue in the June quarter, jumping 14% to $US85 billion. Advertising revenue hit $64.6 billion. Search was up 13.8% to $48.5 billion and YouTube was 13% higher at $8.66 billion
Some analysts pointed to a slowing in growth by YouTube. Its results were about 3% lower than Wall Street estimates.
However, analysts at investment bank Jefferies called the results "solid" and YouTube ad revenue was within estimates.
Microsoft also reported search and advertising revenue up 19% in the June quarter.
Snap reported advertising revenue up 10% to $1.13 billion in the June quarter as brands using its platform increased but investors market this down.
Pinterest reported a 21% rise in revenue to $845 million, with “advertisiers seeing improved performance” across the platform.
Media industry analyst Brian Wieser said the overall industry appears to be benefitting from a continuing expansion for budgets from many of the world’s largest marketers.
“To be sure, growth rates from some companies produced headline ‘disappointments’ among investors and securities analysts, as we saw in results from Snap and Amazon in particular, but arguably expectations held by those who were disappointed may have been overly positive,” Wieser, of Madison and Wall, wrote in a note to clients.
“After all, if any industry grew by double digit levels forever, it would eventually account for the entirety of its economy.
“But it’s not the whole industry that’s benefitting: digital platform-focused global companies continue to outpace growth from companies whose businesses are limited to individual countries and centered around content, most of whom see flat-tish or negative growth.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.