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The digital advertising market performed well, and even Reddit cuts its loot.
Reddit on Wednesday Report Revenue in the fourth quarter was $428 million, up 71% from the previous year, the fastest growth rate in any quarter since 2022. While Reddit’s share price fell due to weaker user numbers, the company’s sales continued to grow, indicating a particularly healthy sales suggests that Emarker senior director Jeremy Goldman said.
Investors usually want financial results like tech giants Yuan,,,,, letter and Amazon Goldman Sachs said it is to understand the overall health of the advertising market. Reddit’s sales grew significantly along with larger players, indicating that advertisers feel optimistic enough to “diversify to a newer platform like Reddit and say ‘we’re willing to throw some of the stuff that doesn’t know much about this thing. dollars,” Goldman said.
Media and Advertising Supervisor Tell CNBC was optimistic about the market in December and said advertising spending increased in the fourth quarter. Gil Luria, head of technical research at investment banking firm DA Davidson, said online advertising technology companies’ latest quarterly earnings reports seem to reflect that view. He added that after the U.S. presidential election, “animal spirit is very high.”
For the fourth quarter results, Yuan explain Sales were $48.39 billion, up 21% from the previous year. Microsoft says Fiscal second quarter Search and news advertising revenue increased 21% year-on-year, although it did not provide specific sales. Amazon It said its online advertising business grew 18% year-on-year to $17.29 billion in earnings in the fourth quarter Fourth quarter results,,,,, letter It said its Google ad sales rose 11% year-on-year to $72.46 billion, while YouTube’s ad revenue rose 14% to $10.47 billion.
“Advertisers feel that consumers are vulnerable to advertising and are investing in that,” Luria said.
Luria noted that while Google is the main online advertising business, it is losing some market share as its core search engine is increasingly challenged by other investments in artificial intelligence and related services such as Chatgpt.
“They are the largest digital advertising platforms, but a lot of them are search-based, and their search franchise is constantly eroding,” Luria said. “It’s eroded by Amazon, meta-eroded, and AI players.”
Luria said, fortunately, YouTube is still thriving for letters.
Luria said YouTube “became a major media destination, so much more momentum than you see from advertising growth.” He noted that some creators have moved to YouTube during the Tiktok ban.
Kate Scott-Dawkins, global business intelligence president at Media Investment Firmmm, said the uncertainty of Tiktok’s future in the United States has not yet affected advertisers who are still running campaigns on the bound platforms.
If Tiktok is eventually banned in the United States, Scott-Dawkins said she hopes Meta and Alphabet inherit most of the ads, but noted Break,,,,, Pinterest Others can pick up scraps, too.
Snap and Pinterest also reported their fourth-quarter results last week. Pinterest explain Sales volume Growing 18% year-on-year, while Snap increased by $1.15 billion Report Revenues for the period were $1.56 billion, an increase of 14% from the previous year.
However, not every digital advertising player has achieved good results this quarter.
Although advertising technology companies on Wednesday’s trading station Report Sales grew to $741 million in the fourth quarter, 22% under Wall Street estimates, which caused stock sales to drop. CEO Jeff Green attributes turnovers to “a series of small execution mistakes” among analysts call.
Experts say that while companies are investing in digital advertising platforms, high inflation, tariffs and weaker economies outside the United States have the potential to put pressure on the advertising market.
High tariffs and new trade policy May cause China-linked retailers such as Temu and Shien to slow down A huge digital advertising campaign Luria said in the case of Giants like Meta and Alphabet. But even those retailers with China-related links may be the ones that other advertisers take their place.
AI startups like Openai, Anthropic and others may end up being the main advertising spend, Scott Daykins said. This is similar to senior tech companies like Airbnb and Tiktok that once grew users through Facebook and Google. Openai debuts Super Bowl She said commercials last week could be a metric for more advertising spending.
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