Google’s strength in search advertising helped it weather the most recent quarter better than many of its rivals, but the vaunted internet giant isn’t immune to the problems facing the digital ad sector at large. And now, in the midst of an economic malaise, plus ramped-up regulatory scrutiny in various countries, Google faces some of its biggest challenges ever. This Analyst Take examines those headwinds.
Despite its size and strength, Google has vulnerabilities as ad demand slows. Its power in search makes it a magnet for advertising dollars, and over the past few years, it and Meta have monopolized the majority of digital ad spend. Recent quarterly results, however, suggest it won’t escape the sting of current record-high inflation, market uncertainty, global repercussions of war, and a pullback in consumer and business activity.
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