Google And Snap's Advertising Business Growth Makes Positive Projections For Meta Platforms

Big tech advertising growth this year is promising. (photo: pexels)

JAKARTA - The resurgence of Google and Snap's advertising business has shown that the adoption of artificial intelligence is increasingly attracting marketers to digital platforms. Even in uncertain economic conditions, the business provides good hope for Meta Platforms, which is the parent of Facebook.

Alphabet Inc., and Snap topped third-quarter earnings expectations on Tuesday, Oct. 24, with the tech giant seeing strong growth in both its core Search and YouTube units.

"The term artificial intelligence helps advertisers find as many people and their ideal audience as possible at the lowest price," said Philipp Schindler, chief business officer at Google, quoted by VOI from Reuters.

The company has doubled down on technology with tools like Performance Max, which uses artificial intelligence to determine how marketing budgets should be distributed across Google's ad network.

Meanwhile, Snap's efforts to update its ad targeting tools with technology also yielded satisfying results, as average revenue per user increased in the third quarter.

Meta, which derives almost all of its revenue from advertising, will report earnings after the market closes on Wednesday, October 25. Wall Street expects the company to report its best quarterly sales growth in nearly two years.

The results suggest the advertising market recovery remains underway, analysts said, led by spending from retail companies. They pointed to Google and Meta as the biggest potential beneficiaries.

"We expect large platforms like Meta and Google to lead wallet share growth at least early in this ad spending recovery," said analysts at Evercore ISI.

These companies are seen as more resilient to uncertainty triggered by geopolitical turmoil such as conflict in the Middle East because their broader reach helps attract a steady flow of advertisers.

Meta has also relied heavily on marketing planning and ad measurement features powered by artificial intelligence in recent years to drive its growth.

"Facebook/Instagram's tools for creating marketing campaigns are much faster and easier to use" than smaller rivals including Snap, RBC analysts said, which could potentially give Meta an edge.