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 Entrepreneur.com. 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.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Marketing

5 SEO Hacks to Help You Rank Fast

Discover the best SEO hacks you can use to rank fast and avoid waiting for months to see results.

Starting a Business

Inside the Exclusive Private Club Devoted to Food, Wine and the Arts

Barrett Wissman breaks down the passions and partnerships behind his latest venture Domus Artium Reserve.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Collaboration

Watch Out for These 5 Consequences of Too Much Collaboration

Beware of the collaboration trap! Too much collaboration causes overload, and well-intentioned efforts to have broad collaboration can backfire.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.