YouTube Ad revenue comes short in the 3rd quarter

YouTube and Google are owned by one company - Alphabet. This week, Alphabet published the revenue and ad income on all platforms for the 3rd quarter of the year. The investors are not happy with the outcomes. The biggest video engine came short in ad revenue. YouTube is not meeting the expectations anymore in the era of TikTok and Instagram Reels.

Shares of the Alphabet are down after the publication.

Alphabet, the parent company of Google, had a tough November. Its shares fell by more than 7% last month, and it was the worst-performing stock in the S&P 500. There are a few reasons why Alphabet's stock may have taken a hit last month. The interesting fact is that Google's core business, search advertising, appears to be slowing down. The average cost per click, which advertisers pay Google when someone clicks on their ad, fell by 8% in the third quarter from a year earlier. That was the steepest decline since 2016, and it caused Alphabet's revenue to miss Wall Street's expectations.

The problem with the digital advertising market

The digital advertising market in 2022 will be $533.25 billion. This is a 9.5% increase from 2021. TikTok and Facebook took a more significant share than YouTube and Google. As mentioned above, investors are happy with the returns per share. The big team behind YouTube has to improve its presence in the digital advertising market as soon as possible. The time is not waiting as the shares decline in price weekly.