Get All Access for $5/mo

'It's a Bad Omen': Google Earnings Reaffirm TikTok's Advertising Domination TikTok is on track to overtake YouTube as the social media platform users spend the most time watching.

By Amanda Breen Edited by Jessica Thomas

NurPhoto | Getty Images

Google parent Alphabet, widely considered the dominant player in the digital advertising space, has been struggling alongside the rest of the tech sector this year.

Alphabet reported weaker-than-expected earnings for Q3 on Tuesday, per CNN Business — a result of the tough economic climate and some serious competition from social media platform TikTok.

Related: This Is the Future of Digital Ads. Is Your Marketing Strategy Ready?

Alphabet's revenue totaled $69.1 billion and earnings per share of $1.06 for Q3 — falling far short of analyst forecasts, Variety reported. YouTube, owned by the parent company, also failed to live up to expectations with its $7.07 billion in ad sales, a 1.9% decrease compared to the previous year.

Part of the issue? TikTok. It became the most downloaded app in the world in 2022, per The Guardian, and is on track to overtake YouTube as the social media platform users spend the most time viewing by the end of this year.

And it looks like that's a sign of things to come for the rest of the industry.

"When Google stumbles, it's a bad omen for digital advertising at large," Insider Intelligence's principal analyst Evelyn Mitchell told CNN Business, adding, "This disappointing quarter for Google signifies hard times ahead if market conditions continue to deteriorate."

Related: Increase Revenue With Digital Ads in Your Retail Space

Alphabet Inc Class A is down nearly 36% year over year.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."


The Key to Real Innovation Is Cross-Pollination — Here Are 10 Ways to Implement It in Your Business

Transform your business with this unique approach to sparking innovation.

Business Models

5 Questions to Ask to Make Sure Your Company's Financial Plan Is on Track

Conducting a "check-up" at midyear is essential to maintain a healthy financial plan.


7 Ways You Might Be Damaging Your Credibility as an Entrepreneur

Here are seven credibility killers entrepreneurs need to be aware of.

Business Solutions

Why Every Solopreneur Needs to Embrace AI-Powered Teams

With the right approach, solopreneurs can harness AI to drive efficiency, productivity and business growth.

Side Hustle

These Are the 10 Best Online Side Hustles of 2024 to Earn Extra Cash

From teaching to testing artificial intelligence, these side hustles can earn you quick cash from home.