The digital advertising growth Big Tech companies saw during the pandemic is starting to slow, The Wall Street Journal reported May 5.
The three largest digital advertising companies in the U.S. — Alphabet, Meta and Amazon, reported that their ad revenue in the first three months of 2022 grew by 22 percent, 6.1 percent and 23 percent respectively. This is down by 50 percent from 2021.
The slowdown is being attributed to inflation fears, supply-chain shortages, war in Ukraine, a gradual return to normalcy two years into the pandemic and the continued rise of TikTok and Apple.
Last year, Apple introduced mobile-ad tracking changes, making it harder for advertisers to target consumers and measure the performance of their ads. This change has caused the digital advertising model to falter, according to the report.
Meanwhile, TikTok is becoming fierce competition for digital advertising companies. The company is expected to see its global ad revenues triple this year to $11.6 billion, outpacing other Big Tech giants.