Big Tech Including Twitter, Google Impacts Revenue Growth as Advertising Trends Disappear: Report

After unprecedented revenue growth last year, digital platforms including Alphabet, Meta Platforms, Snap and Twitter now face a serious reality as pandemic-driven advertising trends turn lost, according to an analyst report on Thursday.

Research firm MoffettNathanson has cut its 2025 revenue estimates for each of the four companies to double digits.

US digital ad spending grew 38% in 2021 from the previous year. Alphabetlargest digital advertising platform in the world, achieving a record revenue of $257 billion (approximately Rs 19,95,499) that year.

While companies have warned of pressures from inflation, the Ukraine war and the end of the COVID-induced surge on advertising, the report estimates the potential impact on revenue for the first time in a few days. next year.

Michael Nathanson, an analyst at MoffettNathanson, wrote in the report: “After years of optimism, we are genuinely concerned about the long-term growth in digital advertising.

The growth of the advertising market last year was partly due to an “unprecedented spike” in profits at companies saving money on office space and expansion and spending more on marketing, as well as on marketing. As brands spend on advertising to drive customers to shop online, Nathanson writes.

However, e-commerce’s percentage of retail sales has fallen back to pre-pandemic levels, and the company’s costs are likely to rise as workers return to the office, according to the report.

The company said it now expects online advertising in the United States to grow 12.5% ​​annually through 2025, down from its previous estimate of 18.5% annual growth.

© Thomson Reuters 2022

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