Advertising revenues of U.S. tech giants generally declined in Q4, with only Amazon experiencing growth

It is learned that the Q4 earnings season is coming, and the financial reports of major US technology giants have been released one after another, including their respective advertising revenue performance. In general, the advertising revenue of US technology giants in Q4 generally declined, and only Amazon achieved a 19% growth, which put pressure on digital advertising giants such as Meta and Google.

Amazon's financial report released on February 2 showed that its advertising revenue increased 19% year-on-year to US$11.6 billion in the fourth quarter.

Although advertising only accounted for a small portion of Amazon's $149.2 billion in revenue in the fourth quarter, it reflects the rapid growth of Amazon's advertising compared with other giants.

Meta's advertising revenue in the fourth quarter fell 4% year-on-year to $32.17 billion. In this regard, its chief financial officer Susan Li said: "In line with our expectations, fourth quarter revenue was still under pressure from weak advertising demand, which we believe will continue to be affected by the uncertain and turbulent macroeconomic situation."

Meanwhile, Alphabet on Thursday reported fourth-quarter advertising revenue of $59.04 billion, down from $61.24 billion in the same period last year.

Alphabet's YouTube advertising unit, which faces competition from TikTok, had revenue of $7.96 billion in the fourth quarter, down 8% year-on-year.

Technology companies whose main business is digital advertising have been under pressure from a variety of factors, including the economic downturn, increased competition from TikTok and Apple's iOS privacy policy update.

Insider Intelligence survey shows that Amazon currently accounts for 7.3% of the entire online advertising market, lagging behind Alphabet's Google, as well as Meta's Facebook and Instagram, which account for 28.8%, 11.4% and 9.1% of the digital advertising market respectively.

Editor✎ Ashley/

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