CNBC Reports Meta's Ad Revenue Grew 26% in Q3 While Google Search Grew 12%
The 14-point gap is the widest in Meta's favor since 2021, and it hints at where advertisers may put budgets next.
Meta's ad revenue rose 26% to $63.1 billion in the third quarter, while Google's Search and other unit grew 12% to $63.4 billion, according to CNBC. CNBC says the 14-point gap is the widest in Meta's favor since 2021.
CNBC reports that almost 10 million advertisers used at least one Meta AI tool in the quarter. Meta CFO Susan Li said advertisers using Meta's AI recommendations "drove almost 5% more conversions" and raised ad spend 9% compared with those who did not. Google's Philipp Schindler said Gemini models are going "across our entire ads infrastructure."
The story is also about search habits. CNBC says chatbots and AI summaries give users answers instead of links, so fewer clicks may reach advertisers, though Google search queries hit a record high. Alphabet's stock fell more than 12% after its October 29 report, CNBC says. Both companies are spending heavily on AI, and CNBC notes both have negative free cash flow.
Both platforms are pushing AI campaign tools. Test them with a small budget and compare cost per sale against your current setup. Do not move large budgets on one quarter of results, and keep an eye on whether your search clicks are shrinking.
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