Google Admits Slump in Digital Assets Market Has Axed Ad Business

Google has acknowledged that crypto winter has negatively impacted the advertisement business. During its earnings call, Google's parent company Alphabet said that the search engine giant registered merely six percent growth from ad revenues in the last quarter that ended in September. This figure is the lowest recorded by Google in ad revenue in almost ten years. Due to the slump in the crypto market, the revenue owing to financial ads have dropped down significantly.

Around September, the market cap of the crypto sector dropped lower than the trillion dollar-mark. Google's Chief Business Officer Philipp Schindler noted that Google has seen a reduction in financial spending search between July and September.

“For example in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories,” Bitcoin.com quoted Schindler as saying.

The slowdown in crypto activities axed the businesses of several companies related to the sector.

Just earlier this week, Freeway, a crypto staking platform has stopped buying and withdrawal services on its platform citing market fluctuations.

As investors in the crypto sector have pulled out owing to a low-risk appetite, many other crypto firms have faced similarly challenging situations this year.

Crypto lenders Celsius Network, BlockFi, Vauld, and Voyager are among those platforms that went from pausing withdrawals to declaring bankruptcy amid the crypto market volatility.

The crypto sector has, in recent times, emerged as a point of exploration for Google.

Earlier this month, for instance, Google and Coinbase revealed plans for a strategic partnership, which would allow select customers to pay for the cloud services using crypto from early 2023.

At the time, Thomas Kurian, CEO of Google Cloud had said that Google aims to make building in Web3 faster and easier.