A new report suggests that Google U.S. ad revenues this year will fall for the first time in more than a decade, while rivals Facebook and Amazon see continued growth.
The report, published Monday by research group eMarketer, says it’s the first time Google’s U.S. digital ad revenue will decline since it began tracking the company in 2008. And while Facebook and Amazon will continue to see growth, they will do so at a severely depressed rate when compared with previous estimates.
The COVID-19 pandemic ushered a significant drop in consumer demand for travel services, which in turn has hit the search giant's bottom line particularly hard, says Nicole Perrin, principal analyst at Insider Intelligence at eMarketer.
“Google's net U.S. ad revenues will decline this year primarily because of a sharp pullback in travel advertiser spending, which in the past has been heavily concentrated on Google's Search ad products,” Perrin said in a statement. “Travel has been the hardest-hit industry during the pandemic, with the most extreme spending declines of any industry.”