Research firm MoffettNathanson has lowered its 2025 advertising revenue forecasts for major tech companies. After abnormal growth during the acute phases of the pandemic, analysts are confident that a significant decline in revenues should be expected for Alphabet, Meta* Platforms, Snap and Twitter.
Image source: adsense.google.com
At the end of 2021, it was found that Americans spent 38% more on digital advertising than a year earlier, and Alphabet, as the largest advertising platform in the world, reported a record revenue of $257 billion. the foreseeable future, caused by inflation, Ukrainian events, as well as the weakening of the effects of the pandemic, due to which revenue grew to abnormal values, however, MoffettNathanson analysts tried to assess the prospects for the next few years.
Analyst Michael Nathanson said over-optimism is being replaced by concerns about the long-term growth of digital advertising. He attributed last year’s surge to profit surpluses from companies that saved on offices and expansion in return for additional marketing funds and encouraged customers to increase the number of orders via the Internet.
However, with the retreat of the pandemic, the share of e-commerce in retail sales has begun to fall again, and corporate costs, by contrast, will now rise as workers return to the office. In this regard, the overall growth forecast for the online advertising market in the United States until 2025 has been reduced from 18.5% to 12.5%.
* It is included in the list of public associations and religious organizations in respect of which the court has made a final decision to liquidate or ban activities on the grounds provided for by Federal Law No. 114-FZ of July 25, 2002 “On counteracting extremist activity”.
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